Account Updater is a service provided through major card networks that helps merchants keep stored payment card information up to date. It is particularly useful for businesses that process recurring payments, subscriptions, or other transactions where a customer's card information is stored for future use.
When a customer's card is replaced, expires, or otherwise changes, Account Updater can help provide the merchant with updated card information so future payments can continue without requiring the customer to manually update their payment details.
What is Account Updater?
Account Updater is a service operated by the major card networks (known as Visa Account Updater at Visa and Automatic Billing Updater at Mastercard, with similar programs at American Express and other brands) that keeps merchants supplied with a customer's current card details for a small fee per response. When a customer's card expires, gets replaced after a data breach, or is otherwise reissued, Account Updater can automatically supply the merchant with the new card number and expiration date, without requiring the customer to log in and re-enter anything.
It's especially valuable for recurring billing and subscription businesses, where a single outdated card can interrupt a customer's service, generate unnecessary customer service calls, and create friction for both sides.
When should a merchant use Account Updater?
Merchants generally enroll with their acquirer or processor and can put Account Updater to work in two ways:
Before billing: Submit stored card data through Account Updater ahead of a billing cycle (a process sometimes called a “batch” or “real-time” update, depending on the network). This keeps card information current and helps prevent a decline from happening in the first place.
After an Account related decline: If a transaction declines, the merchant can send that transaction and customer data to Account Updater to try to retrieve current card information.
What Type of Card Changes Can Account Updater Address?
Expiration date changes
New account numbers
Cards replaced because they were lost or stolen
Cards reissued following fraud or other account events
Account closures
Card brand conversions
Recommendations to contact the cardholder for updated payment information
Possible Account Updater Responses
Updated: a new card number the merchant can use going forward.
Expiry: a new expiration date the merchant can use going forward.
Contact-C: a notice that the account has been closed, so the merchant knows to stop attempting to bill it.
Contact: a signal that the merchant should reach out directly to the customer to get updated information.
Null: No Response, meaning nothing is actionable, and no cost is incurred.
Will Account Updater affect chargebacks or fraud risk?
In general, Account Updater shouldn't meaningfully move the needle on a merchant's chargeback percentage. That said, some decline reason codes are more closely tied to chargeback risk than others (Such as lost/stolen) so depending on which codes a merchant sends through Account Updater, chargeback volume from those specific codes could shift up or down. Because of this, merchants should monitor chargeback levels on an ongoing basis to catch any meaningful change early and adjust their approach if needed.