FlyCode Glossary
Key Terms in SaaS Subscriptions & Payment Recovery This glossary covers essential terms used in FlyCode’s domain and the broader SaaS subscriptions industry. Terms are grouped by category for clarity.
Compliance & Risk
Chargeback
A transaction reversal initiated by the cardholder, typically due to fraud or dispute. Too many chargebacks can hurt payment processing reputation.
Payment Processor
A third-party service that handles the transaction between the business and the customer’s bank. Examples: Stripe, Adyen, Braintree.
Issuer Bank
The bank that issued the customer’s credit or debit card. They approve or decline payment attempts.
Communication & Dunning
Dunning
The process of contacting customers (via email, SMS, or in-app) to inform them of failed payments and prompt payment updates.
Payment Reminder
A notification sent before a payment is due or after a failure to encourage timely updates to billing information.
Update Payment Info Prompt
A message or UI flow designed to collect updated card details from customers to resolve failed payments.
Metrics & KPIs
MRR (Monthly Recurring Revenue)
The predictable monthly revenue generated from active subscriptions.
ARR (Annual Recurring Revenue)
The annualized version of MRR, often used for forecasting and valuation.
Net Revenue Retention (NRR)
A measure of how much recurring revenue is retained from existing customers over time, including upsells, downgrades, and churn.
Churn & Revenue Impact
Involuntary Churn
Customer churn caused by payment failures rather than intentional cancellations. A key area FlyCode addresses.
Voluntary Churn
When a customer actively cancels their subscription, typically due to dissatisfaction or changing needs.
Churn Rate
The percentage of subscribers lost in a given period. Often segmented into voluntary and involuntary churn.
Revenue Recovery
Strategies and tools aimed at recapturing lost revenue due to failed payments and reducing churn.
Payments & Declines
Failed Payment
A transaction attempt that is unsuccessful due to reasons such as insufficient funds, expired card, or fraud flag.
Decline Code
An error message returned by a payment processor explaining why a transaction failed. Examples: `insufficient_funds`, `card_expired`, `do_not_honor`.
Insufficient Funds
The cardholder’s account does not have enough money to cover the charge.
Card Expired
The credit card used is no longer valid due to expiration.
Do Not Honor
A generic decline from the issuer with no specific reason.
Invalid Card Number
The card number provided does not exist or is incorrect.
Processing Error
A technical issue prevented the transaction from being completed.
Lost or Stolen Card
The issuer has marked the card as lost or stolen and blocked it.
Restricted Card
The card cannot be used for certain transactions due to issuer restrictions.
Fraud Suspected
The transaction was flagged as potentially fraudulent and declined.
Incorrect CVV
The security code provided does not match what the issuer has on file.
Issuer Unavailable
The issuing bank could not be reached to authorize the transaction.
Retry Logic
The automated mechanism for re-attempting a failed payment, often with smart scheduling to increase success rates.
Smart Retries
An intelligent system that determines the best time and strategy to retry failed payments based on historical data or machine learning.
Alternate Payment Method
A secondary payment method (e.g., another credit card) stored on file and used when the primary method fails.
Payment Orchestration
The coordination of multiple payment processors and logic flows to maximize payment success and minimize downtime.
Card Account Updater
A service provided by major card networks (like Visa and Mastercard) that automatically updates stored card details when a customer receives a new card (e.g., after expiration or replacement), reducing payment failures.
Network Tokens
A secure alternative to storing actual card numbers. Network tokens are issued by card networks and replace the PAN (Primary Account Number) with a token, improving payment success rates and reducing fraud risk.
Subscription & Billing
Subscription Lifecycle
The journey of a customer’s subscription from signup to cancellation, including activation, billing events, payment attempts, renewals, and churn.
Billing System
Software infrastructure used to manage subscription plans, invoicing, payment collection, proration, and billing cycles.
Proration
A billing adjustment that occurs when a customer changes their subscription plan mid-cycle, charging them only for the time used.
Plan Downgrade / Upgrade
When a customer switches to a lower or higher subscription tier, often triggering prorated billing.
Trial Period
A limited time during which a customer can use the service for free or at a reduced rate before transitioning to a paid plan.
