B2B SaaS Platform Eliminates 71% of Chargeback Losses Through ACH Migration
NovaPay's subscription billing ran entirely on card-on-file — leaving them exposed to friendly fraud on every renewal cycle. After migrating recurring revenue to ACH with APS, chargeback volume dropped by 71% in the first quarter.
NovaPay provides workflow automation software to mid-market logistics companies on a monthly subscription model. With over 1,200 active subscribers billed by card, their dispute rate had climbed to 1.8% — above card network thresholds and threatening their merchant account standing.
APS conducted a billing model audit and identified that 94% of NovaPay’s chargebacks originated from card-on-file renewals rather than initial purchases. The recommended path: migrate recurring revenue to ACH debit with proper authorization language and a 10-day advance notification flow.
The migration took six weeks. In the subsequent quarter, chargeback volume fell from 1.8% to 0.52%, and NovaPay’s processing costs dropped by $180K annually due to the lower ACH transaction fee structure.
