Recurring Billing Service – That Provides Convenience To Your Customer
Recurring Billing Services are increasing very rapidly and are a fascinating solution for buyers. With the emergence of eCommerce technology and many online services, recurring billing becomes a very common and convenient mode of payments for the customers. Recurring billing comes to be beneficial for both the customer as well as merchants. The customers find it easy to split the bill into regular intervals, and they appreciate the convenience provided by the merchants. And for a merchant, they get connectivity or retention with their customer for a particular interval of time. The growth of Recurring payment Services in the USA is anticipated to reach $473 billion by 2021 by Businesswire. Seeing the incredible increase in the recurring transaction, it becomes requisite for merchants to offer Recurring Billing Service to their customer.
Recurring Billing services are easy to adopt and convenient for your business. The recurring or subscription-based business model benefits a lot to have an intact binding with your customers. If your business model also relies on recurring service, then we may help you with various merchant services that help you to charge your customers at a recurring schedule. Stay connected with us to know the perks and pitfalls of the recurring payment solution.
What Is Recurring Billing Service?
A recurring billing service is one of the hottest strategies for merchants. A recurring billing service, sometimes also known as a subscription business model helps the merchants to receive payments on time or on a pre-scheduled date. The merchants require a customer’s card information only for the first time to start a recurring billing cycle, and after that, no more authorization is required to debit the customer’s account. The customer for the first time gives permission to the merchant on a pre-decided amount and pre-decided date and recurring cycle term. Once the customer and merchant agree on the recurring cycle, the merchant’s financial institution has the right to withdraw the amount from the customer’s account. But obviously, the customer has the right to terminate the recurring service any time before the next recurring billing cycle.
What Kinds Of Businesses Use Recurring Billing Payments?
There are a number of businesses who rely on a subscription-based model requiring recurring billing service to charge their customer on a regular interval like weekly, monthly or quarterly And with the evolution of technology and with the emergence of SAAS based service or cloud service, the recurring billing model becomes so common. In today’s time, most of the software is licenced for a monthly subscription instead of buying the software service with a one-time payment. Let’s discuss the industries which offer their customers with recurring billing service.
- Automotive Industry.
- Adult Entertainment
- Gym memberships
- Magazine Subscriptions
- Web Hosting etc.
Benefits Of Using Recurring Billing Feature For Your Business
Customer Relationship: It helps the merchant to maintain a healthy relationship with the customer and also binds your customer with your business for a long time. With recurring billing features, you don’t have to call your customer, again and again, to remind them about the due payment, which results in healthier bonding between you and your customer.
- Saves Time and Effort: Whenever a due date is coming for any customer, you don’t need to notify every time your customer about the payment and even you also don’t need to remember about the payment. Everything is automatic. An email will automatically send to the customer as well to you about the due payment and payment gets automatically deducted from the customer account on the due date.
- Secure Customer’s Sensitive Information: As everything is automatic and online, there is no middle man or third party who can play with customer’s confidential data. Only the owner or merchant has the liability for handling the customer’s data securely.
- No late payment: The late payment is one of the major issues with most of the businesses. But with recurring Billing features, there is no more late payment. The payment gets deducted automatically from the customer’s account. It also helps the business to estimate future sales and revenue for their business.
- Environment friendly: When everything is automated, there is no need to generate a paper invoice or billing information every time for every customer. This helps to save tons of paper every year.
Merchant Services That Helps You To Charge Recurring Billing
There are many ways a merchant can set up a recurring billing feature. Let’s talk about a few:-
- Credit Card Processing: Recurring credit card processing is much easier and convenient for customers. The payments get to deduct from the card providing financial institution.
- Echeck: Electronic Checks processing are the most common method to accept recurring payments from their customers. The merchant needs to fill out a recurring eCheck payment form the customers to gain authorization to withdraw money at pre-scheduled dates. When the customer fills and authorizes the form, merchants have the right to pull funds from the customer’s checking account.
- ACH: ACH or Automated Clearing House payments are classified as ACH debit and ACH credit. Usually, ACH debit is used for recurring bills or utility payments. The ACH debit authorizes the merchant to withdraw or pull the funds directly from the customer checking account. ACH can also be used to process one-time payment. The fees of ACH are also lower than that of Credit card processing.
Can A Virtual Terminal Be Used to Accept Recurring Payments?
Yes, a virtual terminal is a web-based tool that helps merchants to accept recurring payments from their customers securely. A virtual terminal can be used to receive credit cards payment as well as echeck and ACH payments. To charge recurring billing to customers, all a merchant has to do is to key-in the customer’s card details or banking information to set up a recurring billing service. If a merchant is accepting recurring payments through credit cards, he needs to fill the payment form with the customer’s card details like card number, cardholder name and CVV to charge at the recurring schedule. If a merchant is charging recurring billing through eCheck or ACH, he needs to fill the customer’s bank account number, routing number and customer’s name on the bank account.
Are you also looking for a payment solution to charge your customer at the recurring schedule, contact us today!
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