Selling a subscription service? What you need to know about recurring payment processing.
Cut down on late payments and billing hassles
You should always be looking for ways to make your life easier as a business owner. This is not about taking shortcuts, but rather automating the time consuming parts of your day. Late payments can throw a budget off track and cost time you likely don't have to begin with. Setting up recurring payment processing means you can concentrate on your business and not on bill collecting. Whether you're selling cupcakes in-store or streaming concerts online, subscription business models supported by recurring payment processing are also a way to get your business more customers and more payments. Here are some tips to keep in mind so you can make the right decisions.
The Many Benefits
Offering recurring payment processing is so handy for customers today, and it can make the difference between whether or not they choose your company. In fact, most have grown accustomed to being able to easily set up their information online or personally with a business and then forgetting about due dates or writing checks. While some people may avoid it because they don't want to get roped into something, most appreciate the convenience of not having to keep track of it every month or even 6 months. Most businesses can offer some type of subscription service for loyal customers, and these may turn out to the biggest revenue generators. This can also simplify your invoicing and billing demands at the end of the month.
Cutting Down On Declined Credit Cards
Sometimes there's a momentary glitch in processing, but you should have a system in place that will automatically retry the card if there's a decline. The same applies for cards and card data that are updated with new account numbers, CVV/CIDs etc. as a result of routine renewals, as well as those associated with big renewal activities associated with data theft and/or activities such as EMV. Services that provide automatic retry eliminate the need to manually rerun it, which means you'll have more payments that come in on time. Your customers should also have the option to input a second form of payment (which you can make a requirement before signing up), so you can try a different type of payment without having to contact the customer directly.
Keeping Up With Data Changes
Information changes quickly today, whether it's a card expiring or a person moving. Good recurring payment processing will mean finding a company that has effective methods of updating data when possible so you don't have to track down your customers.
Effective Reminders and Customization
Whether you ship out packages every month for a wine club or charge for gym memberships, the recurring payment service you use should be able to give you choices and customizations that you can easily incorporate into your business. It should also have a system of letting people know the details of their payments and if there's any type of issue during that month.
Setting It Up
You'll need to have the right software and approach for this process, as well as an airtight safety plan for the credit card data. Make sure 24/7 support is available to you whenever you have questions or concerns about how the process works and what's happening with your customer's precious information.
Recurring payment processing for subscription services cuts down on late payments and billing hassles. Learn more about what it means to incorporate it into your own business.