Subscription management platforms: How to change the provider

Zero defect tolerance for subscription management platforms

When following a subscription model, it is possible to outsource the core processes to subscription management platforms. They take on essential steps in subscription management, recurring billing, recurring payment and receivables management and automate them. business-critical processes are given into a third party’s hands which must deal with them completely reliable. This provider cannot afford to make a mistake – but what if? Many online merchants shun the change of provider, although the process is uncomplicated.

Reasons for a change
Unreliable invoicing, missing reimbursements, unpunctual payments, insufficient support – there are plenty of reasons to change. We already supported several merchants with the change of a subscription management platform. Now we have complete migration and the requisite experience scripts at our disposal.

Conversion to a new provider – a guideline

• Determine an order
  First of all, ask yourself if new and regular customers should be migrated simultaneously? The answer decides upon the further strategy.

 

• Our tip
  We recommend to initially migrate new customers to the new platform and follow the regular customers shortly after. A simultaneous migration is possible but not recommendable. This strategy, however, is very complex.

 

• Choose the payment provider
  Supposing that you decide to migrate your new customers first – now the next question is raised. With which partner do you want to work in future: with your previous payment service provider or with a new one?You’re happy with your current payment provider? If no PSP change takes place, the new platform adopts your data. Or do you want to change your payment provider? Then, there are two possibilities: migrate the new payment provider on your own or outsource this step.

 

• Choose: inhouse migration or outsourcing?
  The integration of a new payment provider can be made by the merchant himself. Therefore, the merchant has to get in contact with their regular customers – which have to enter their payment data again for the new PSP.Another possibility is to let the new subscription management platform take charge of the payment provider change. The old PSP provides a script to exchange of the payment data with the previous PSP. This mapping table is then implemented by the platform.For both options, it is the safest way to first move to the new platform with your new customer orders and observe this as a trial period. If everything runs smoothly, the regular customers can be migrated to the new platform – for the moment with the old PSP – until the new PSP is completely integrated into the new process.

 

• Assets and drawbacks
  If the new platform is in charge of the migration, the merchant will not have any further effort to request the renewed entry of their end customers’ payment data. And the end customer does not need to make renewed entries. On the other hand, four parties are now involved: the merchant, the platform and two payment providers – so expenses for communication and project management should be planned.

 

Our tip
Widespread payment providers, such as Wirecard; PAYONE, Stripe, GoCardless, Paymill and Heideplay, should already be integrated the new subscription management platform. Or at least there should be a possibility to integrate them upon request in a timely manner.

 

• Export data
  Provide your customer- and contract data, for example as an exporter csv file.
• Integrate the new platform
  Now your subscription management platform can be integrated into your current system. For the choice of the provider, you should necessarily consider a comprehensive support during the onboarding process.
• Specify a product catalogue
  Specify your subscription products via admin UI: prices and plans, durations and deadlines, discounts and coupons, payment methods and payment intervals – just what you need for your product.
• Just let it run