Most subscription brands are losing revenue to failed payments - not because customers don't want to pay, but because they're being sent to the wrong place to fix it. In this episode, I break down how payment processing actually works, what your processor health score means, and how to build a dunning strategy that actually recovers payments.
What we cover:
- How tokenization and payment processing work in subscription commerce
- Why your processor health score matters (and what hurts it)
- The math on why a 1% improvement in processing success is massive at scale
- In-app vs. third-party tools for payment recovery (Fly Code, Redux, Butter Payments)
- Why segmenting by payment method — credit card, Shop Pay, PayPal — is the key to better dunning
- How to stop sending PayPal subscribers to the wrong update link
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