Billing Fallback Mechanism

A backup method for charging a customer if the primary payment fails.

What is a Billing Fallback Mechanism?

A billing fallback mechanism ensures uninterrupted service by attempting alternative payment methods when the primary method fails.

Fallback mechanisms help reduce involuntary churn.

Common billing fallback strategies include:

  • Storing multiple payment methods for a user
  • Retrying failed payments with an alternative card
  • Using digital wallets or backup bank accounts

    • SaaS businesses use fallback mechanisms to improve payment success rates and revenue retention.

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