How much revenue are you losing?
Every business that collects payments online has one thing in common: failed transactions.
Why do payments fail?
Payment failures can occur for a variety of reasons, including:
- Expired cards - Customers don't always update billing details when cards expire.
- Insufficient funds - A common issue in subscription billing cycles.
- Bank declines - Sometimes perfectly valid transactions get flagged by banks.
- Technical errors - Network glitches or gateway issues can cause payments to drop.
- Regulatory hurdles - Strong Customer Authentication (SCA) in Europe and similar regulations can block transactions if not handled properly.
How much revenue do failed payments cost?
- A SaaS business with $1M in annual recurring revenue (ARR) could be losing $100K - $150K each year simply to failed payments
- In e-commerce, failed payments often show up as cart abandonment, where the customer may never return after a single bad experience
The ripple effect of failed payments
The cost of a failed payment isn't limited to the transaction itself. It can create a ripple effect across your business:
- Customer frustration - A blocked payment can cause a customer to cancel, even if they intended to continue
- Increased churn rates - Every failed payment risks turning into a lost subscriber
- Operational overhead - Your team spends time manually chasing down missed payments or updating details
- Damaged reputation - Customers may associate failed payments with your brand, even if the problem was on the bank's end
What can businesses do?
The good news: failed payments don't have to be a silent revenue killer. Proactive steps can make a huge difference:
At Failment, we help companies recover lost payments automatically so you can focus on scaling your business instead of chasing invoices.