How FlexPay Helped a Nutraceutical Direct Marketer Double Their Decline Salvage in 90 Days

Our client offers straight-sale continuity health supplements at a $70 price point on monthly autoship to hundreds of thousands of customers.


Our client was recovering 15.2% of declines (including both fresh and aged) when they approached us for help

Prior to working with FlexPay, our client was recovering an average of 15.2% of declines, including both fresh declines (from the last 30 days) and aged declines (more than 30 days old).

This number was exceptional considering the amount of aged declines our client was processing, and due in large part to the sophistication of their automated decline salvage program working in tandem with the tireless efforts of an expensive customer service team working manually.

Can even the most sophisticated decline salvage systems be optimized with FlexPay?


We ran into a couple of integration obstacles but pressed forward

Since our client had their own custom CRM, integration took a bit longer than it would have if they were using one of the many CRM systems FlexPay has direct integrations with.

Since FlexPay mimics the NMI gateway, their developers quickly and seamlessly integrated our technology.

We also learned they had specific reporting requirements we hadn’t anticipated. We added these requirements to our backlog and our agile development team pushed them into production in time for the next sprint.


Every failed recovery not only generates expenses in the form of transaction fees, but insidiously results
in an overall lower approval ratio! A higher decline rate for a merchant causes card-issuing banks to trust subsequent transactions less which in turn causes them to penalize and decline even more transactions!

Declines beget declines.

A Quick Note on Integration

The complexity of this integration was atypical.

When a merchant uses one of the CRMs FlexPay is already integrated with, it only takes a couple of hours to complete a configuration, at which point we can test and proceed to process transactions.

We rely on the collective wisdom of our clients to continually refine FlexPay, so it can best serve their ever-changing integration and reporting needs.

FlexPay is optimized to every client’s unique needs.


22.6% in 30 days

26.2% in 60 days

30.3% in 90 days

Improvement in recoveries showed up immediately!

Historically, it takes weeks for FlexPay’s deep machine- learning technology to truly understand performance of a new salvage process. Requesting early access to this client’s historical data allowed us to train their model prior to the first transaction, so our immediate success rate was better than expected, improving their BETA of 15.2% to 22.6% within the first 30 days.

Our assumption with any client is that modifying our model to introduce new levers will push performance into the 45%-50% range after several weeks. However, in this case performance was less than we were hoping for.

Digging deeper into the data, we discovered that aged declines (more than 30 days old) were being recovered at 2.1%, whereas fresh declines (less than 30 days old) were being recovered at a healthy 48.4%, explaining the blended performance of “only” 30.3% overall.


FlexPay added $10.5M to our client’s valuation.

Thanks to collaboration with our client and their CRM, there has been no appreciable increases in chargebacks, customer service issues or cancellations. Since FlexPay’s mandate is to generate margin (not just increase revenue), each of these metrics matter to us!

After factoring in cost-of-goods sold, refunds, and recovery fees, implementing FlexPay has not only generated hundreds of thousands of dollars of incremental EBITDA, increased net income by an additional 10% of gross revenue, and dramatically improved their cashflow, but it’s also added $10- 15 million to their market valuation.

FlexPay has helped thousands of clients to keep getting the products they love without interruption.

  • Improved decline salvage by 99.3%
  • Added hundreds of thousands of $ in EBITDA Increased NET revenue by 10%
  • Dramatically improved cashflow
  • Added $10-$15 million to market valuation


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