Keeping in the loop of recurring credit card processing
Offering recurring billing can be a big draw for potential customers. It’s not so much that cardholders don’t want to be involved in the billing process – they’re very conscious of when and how their money is being withdrawn. However, if they can avoid any unnecessary actions on their end, a regular and trusted merchant can offer recurring payment processing for potentially significant opportunities.
Recurring billing makes sense
First things first: Why would any cardholder opt into a recurring billing arrangement? Recurring billing does provide a practical and convenient way for consumers to arrange routine payments to be made for them. By agreeing to keep card information on file, cardholders and merchants can set a billing schedule for reoccurring goods or services. Facilitating monthly, quarterly, or annual payments, recurring billing can be a preferred means of paying for consistent services like utilities and fixed-good deliveries or for renewing subscriptions and memberships.
For both consumer and merchant, the primary advantage of recurring payments is convenience. Rather than providing the same sensitive card information time and again, recurring billing makes the payment process automatic. Having provided the card information, cardholders relieve themselves of the now unnecessary hassle of making the same payment to the same merchant for the same commodity. Provided the bills are always correct, recurring billing saves customers time and redundant attention. This service also relieves them of the burden of making time-sensitive payments.
Prompt and unfailing payments are also a considerable gain for merchants. Investing in a customer base that makes payments on time is not only a courtesy to their bottom line – it creates a highly dependable bottom line. Set in the agreement of recurring billing, customers provide a near guaranteed loyalty to the billing merchant. However, this does have the potential to become a source of dissatisfaction if the billing is not managed properly.
Growing a larger customer base and retaining that population is the ideal of recurring payments. However, it is important to keep in mind that though customers have agreed to automatically pay regularly-occurring bills, they may not be as happy with the provided products or services as their returning business would lead one to believe. Because they are locked in to the agreement, which can be a difficult procedure to cancel, many may stay despite displeasure with the experience.
Furthermore, should the customer forget about recurring charges to their account, or if a charge is inaccurate, it can also be a tiresome process to correct the status of the transaction. Pursuing a refund could try the patience of both the customer and merchant and ultimately lead to aversion of the recurring payment system and the business altogether.
Recurring credit card processing adds convenience and card security to customary transactions with familiar merchants. Taking care to avoid and minimize the obstacles of recurring payments through attentiveness and communication between merchant and participating customer can return big benefits to both parties using recurring billing.