How does an account updater reduce failed renewals?
An account updater replaces outdated stored card details before a renewal is attempted. Issuers report new card numbers, new expiry dates and closed accounts to the scheme, and acquirers pass these updates to enrolled merchants. Visa Account Updater and Mastercard Automatic Billing Updater avoid declines caused by expired or reissued cards, a common reason for failed renewals.
In detail
An account updater keeps stored cards current. Cards expire, are lost or are reissued, and a merchant holding the old details gets a decline at the next renewal.
How it works
- The issuer reports a change to the scheme: new number, new expiry date, closed account or a request to contact the cardholder.
- The merchant’s acquirer or PSP queries the scheme service, in batch before a billing run or in real time.
- The merchant’s vault is updated, and the renewal is sent with valid details.
Visa describes Visa Account Updater as a service that lets issuers, acquirers and qualified merchants exchange updated account information. Mastercard’s Automatic Billing Updater provides updated credentials, including card number and expiry date changes.
Limits
Not every issuer takes part, and a closed account stays closed. Network tokens reduce the need for updates, because the scheme links the token to the new card automatically. See network tokens for that mechanism and CIT vs MIT for the recurring flow. Updates should run before retries: a retry policies matrix is more effective when the credential is fresh.