Offering recurring payments is a great way to increase customer retention, improve checkout experience and grow customer loyalty – and at the same time automate your payment processing and reduce operating costs.
Often, recurring billing is associated with debit orders or direct debits. However, credit and debit card recurring billing provides the same monthly collection conveniences plus more such as real-time authorizations, faster funding and global sales reach. Cardholders are also looking to pay with card for known benefits such as loyalty reward points, interest free payment terms, trusted brand (Visa / MasterCard) and ease of payment process.
Key Benefits for Merchants
The Right Solutions for Your Industry
Many types of direct billing businesses can benefit from recurring payment solutions through the collections of fees and subscriptions.
Common industry verticals that utilize recurring are:
MasterCard Consumer Research Reveals Opportunity for Recurring Payments
According to a study released by MasterCard, 47% of credit card owners and more than half of debit card owners said they would consider adopting or using additional recurring payments by credit card or debit card, respectively. With consumers wanting to benefits from card payments, businesses are expanding their payment options to include credit and debit cards to their customers.
Here are some quick points to consider when implementing recurring payments
1. Select a recurring billing solution
You will need an application or interface that helps you to manage clients and recurring card billing. This can normally either be done from a payment gateway or a subscription based software package. Payment Gateways like MyGate offer an online interface that allows merchants to manage their recurring clients. If you are using a software package, you will need to make sure that it works with a payment gateway as the card transaction still needs to be processed to the bank.
2. Introduce the recurring payment option to your customers
Your customers will understand what a recurring payment is so you won’t have to explain to them how it works but you will want to inform them that the payment will be recurring and to notify them of the set timing, frequency and amount.
3. Set timing, frequency and amount
In order to set up a recurring payment, you will need to include certain information such as:
4. Process payment information
In order to process a recurring payment, the card information is required to be captured. To reduce your PCI compliancy requirements, it is highly recommended that you do not store card information in your environment. Payment Gateway’s offer tokenization solutions that allow the card information to be replaced with a token so that for subsequent transactions only the token and value are required to be submitted.
Consumers have made it clear that they want recurring credit card billing as a payment option and many businesses have either implemented or begun the process to implement recurring payments. Our consultants, at Swift Merchant Services, have many years of experience in merchant services and can advise you on the best type of recurring merchant account based your business model and requirements. If you’re a merchant, contact us to find out more about how to use recurring credit card billing for your business.
Offering recurring payments is a great way to increase customer retention, improve checkout experience and grow customer loyalty – and at the same time automate your payment processing and reduce operating costs. Often, recurring billing is associated with debit orders or direct debits. However, credit and debit card recurring billing provides the same monthly collection[…..]
What is a Merchant Account? A merchant account is virtual bank account that holds money from credit and debit card sales. The merchant account is linked to your business bank account and money is normally transferred out on a daily or weekly basis. Any company that wants to accept credit cards must establish a merchant[…..]