FlexPay Pricing

Our pricing is simple – FlexPay doesn’t cost you anything upfront. We only charge on the lift we generate. In other words, we don’t get paid until you do, so you’re always net positive.

Keep reading to learn about our pricing or find out more about FlexPay here.

So, How Much Does it Cost to Work With FlexPay?

We charge 25% of the lift that we generate. 

No, we won’t ask you to endure a marketing funnel to get our pricing. We’re quite proud of how we bill you, as we believe it’s fair and motivates both of us (FlexPay and you) to work as hard as possible to make your business grow. 

What this means is that we only charge you when we’re making you money. For every dollar in fees you pay, you get four dollars from recovered customersYou are NEVER OUT OF POCKET, as we only bill you after we’ve recovered declines. We also net out chargebacks and refunds because we want our billing to be as fair as possible. 

Despite the simplicity of our pricing model, implementing it can sometimes be challenging. The difficulty lies with us charging on the “lift that we generate.” At its simplest, if you have no chargebacks, no refunds, and you have never engaged in any kind of recovery practice, then lift is whatever we recover. However, everyone has some refunds, some chargebacks, and often some recovery. In that caselift becomes the amount we recover less chargebacksrefunds, and the recovery you would have done. 

The Big Three: Timing, Refunds, and Chargebacks

One big issue is timing. If we recover a transaction on August 5ththere may be a refund on that transaction months later. The same applies for chargebacks. 

When it comes to comparing your success against ours, we run into a more complicated issue. Let’s say that you are currently recovering 15% of your declines. It’s very likely that in order to recover that 15%, you need a fair amount of time. If we recover 10% in the first week that you turn on FlexPay, are we generating lift? The easy answer is no because you recovered at 15%. But what if it takes you one or two months to generate that 15%. In that light, it would seem we’re doing fairly wellIt can be hard to tell. 

Refunds and Chargebacks

Another issue is tracking the actual recovery rate – especially when we factor in refunds and chargebacks. In the first week, you send us $100,000, and we recover $10,000 with no refunds and chargebacks. Easy to understand. In the next week, you send us another $100,000. That week we need to track what we recovered from the first week and what we recovered from the second. So, that might be $5,000 and $10,000, respectively. We’ve recovered 15% of the first week and 10% of the second. In the third week, the process continues, except we’re now tracking three weeks of data. As you can imagine, invoicing and tracking of this could be a real burden. 

In fact, it’s much worse because our clients send us declines every day, so instead of tracking three different recovery rates over three weeks, we’re tracking 21. Since we typically recover for about 30 days (ranges from 5 to 40), we would be tracking at least 30 distinct days of recovery until complete. 

But it turns out that things never fully complete because refunds and chargebacks can come back many months later. So, if a refund appears in September for a decline recovered in July, the actual recovery rate for that day in July is less than what we thought it was before the refund. For a company committed to being impeccably fair and only charging on lift, this set of problems demand that we find a different approach. 

Happily, we did find a better way. 

How Do We Solve the Problem?

We talk to you during discovery and onboarding and determine what is likely to be our success with you. Let’s say that you’re a SaaS business with a good clientele. Our experience has been that we’ll typically see recovery rates of 4060% for that kind of business. Then, we talk about what your recovery rate has been. We look at your data and discover that you’ve been doing well – recovering 25%. We send that data to our analysis team, and they come back with our best expectation on what we’ll recover: let’s say they come back with 50%. It would be no surprise that we would double the recovery rate of our client’s efforts. 

Armed with the 50% expectation, we can now bill regularly with what we call the rebate model. Let’s take the example from above. We recover $10,000, and let’s say you had $300 in chargebacks and $1,000 in refunds (ouch, tough week!). That nets you $8,700. It’s important to note that the chargebacks and refunds are not necessarily from the recovery that week, but it doesn’t matter with this model (that’s why it’s so clever!). We apply the 25% in fees to get $2,175. Then, we use the rebate. 

The rebate captures the fact that, left on your ownyou would have recovered some of the transactions. You would have recovered at a ratio of 25% to 50%, with the 25% being your recovery and the 50% our expected recovery. On any given arbitrary set of days, you would have been responsible for 50% of the recovery, and we would have been responsible for the other 50%. That means that we reduce the $2,175 by 50% to give us $1,087.50. And that’s our bill. 

This solution has many advantages. We don’t have to worry about the recovery rate on a block of declines. The timing of chargebacks and refunds is irrelevant. And, we don’t have to worry about the timing of your process versus ours. Fantastic! 

What If We Recover Less than the Assumption?

Wait, you might say, but what if FlexPay doesn’t recover at a rate of 50%? What if FlexPay only recovered 45%Or 60%? Then we would be charging the wrong amountWe have a fix. 

After a set amount of time, say four months. We do a true-up to validate that our estimate is right and to establish a rate that is fair for the next four months. In the case above, let’s say we discovered that for all the traffic sent during the true-up period, we recovered only 45%. That means the rebate should have been 25/45, not 25/50. You paid too much.¹ We’ll issue you a credit on all the invoices that had been billed at a 50% rebate and change future billing to the correct rebate rate of 25/45 or 55.6% 

In the end, you’re paying 25% of the lift, just as promised. 

Contact us to learn how FlexPay can help your business.

¹You paid too much in fees, but our recovery was much higher than yours would have been. Even while the rebate is too low, you’re getting a great return on your investment.