Every billing period, merchants with automatic payment arrangements face the challenge of card payments that bounce back due to account changes. For instance, when an updated card is issued, a customer account number may change or the original card may expire. If this information doesn't get to the merchant, the transaction is declined. That affects revenue and it's inconvenient for customers. These bounce-backs also cost merchants money by forcing them to contact customers for either updated account information or alternate payment arrangements.

The MasterCard Automatic Billing Updater (ABU) helps ensure an uninterrupted payment for merchants and uninterrupted service for customers. It seamlessly updates recurring account information. The ABU automatically maintains accurate customer account data and prevents disruptions due to account changes.

The ABU provides operational efficiencies while supporting a broad range of account changes:

• Brand flips
• Portfolio sales
• Expiration date changes
• Card upgrades
• Reissued cards due to fraud or new programs
• Lost/stolen cards
• Closed account status

The ABU can help lock in revenue, reduce processing costs, maintain service continuity, and strengthen cardholder satisfaction. It extends the life of online and offline automatic payment arrangements by helping to secure these ongoing, revenue-generating relationships.

How it works: six simple steps

Note: Both issuers and acquirers must be enrolled in the service.

• Participating issuers submit their account changes to the ABU database.
• Registered merchants submit their billing file inquiries to their acquirer.
• Acquirers submit the billing file inquiries to the ABU database.
• MasterCard processes the merchant account inquiries against issuer account change submissions, and then returns results to the acquirers.
• Acquirers return updated account inquiries records to their specific merchants.
• Merchants update their billing files with the changed account information and have more successful billing.