4 Best Practices for Implementing Recurring Billing
- 31.05.2021 07:15 am
Automated billing is made as a convenience feature for customers. Subscriptions in the form of recurring billing is the next evolutionary step to help with the customer experience. There are multiple ways to implement recurring billing software into your current system. For the best experience, take a look at the things you value the most out of the process.
1. Payment Type
Payment types matter when recurring billing options are selected. The more payment types you allow, the more likely the consumer will sign up for a recurring billing. Consistency matters in this situation if you plan on encouraging consumers to sign up. If they use a debit card to make a single payment, then that same card should be available for a recurring billing system.
You’ll also gain the respect of customers by making checking accounts available for recurring billing. This is not widely practiced, but is an easy way to make recurring billing more attractive. The financial concerns of a company will always come into play when making a decision about which payment types to accept. Start with the right foundation so that time and money isn’t wasted.
2. Other Payment Needs
There is nothing wrong with prioritizing recurring billing. It can be the money maker for a company that keeps the business out of the red. But are you giving up other financial strengths to accommodate recurring billing?
Integration matters when switching to recurring billing. This is a system that is meant to enhance, but not replace normal payment methods. Customers will notice if you downgrade the professionalism of your one-time payment choices. They will also notice if you set recurring billing as the default payment option. Forcing it on a customer like an advertisement has the opposite effect, and may alienate future purchasers.
When your company looks for a payment overhaul, find one that naturally integrates recurring billing into the entire system.
3. Technical Expertise
There are two main functional ways to include online recurring billing into your system. Through an API that integrates seamlessly, or through a hosted online payment form. API is what most companies would choose, but there are several reasons to choose alternatives. A hosted online payment form frees up bandwidth and doesn’t rely on company resources to maintain its integration.
Improvements to API’s that are tied to recurring billing are much different than when they were first introduced. The programming is robust, customizable, simple and has a low overhead. Unless you have a specific need that isn’t being met, then an API is the best way to integrate recurring billing.
Flexibility with custom payments gives customers even more choices when signing up. When the default options of recurring billing aren’t enough, flexibility within the system helps out both sides. If your company charges setup fees with a recurring subscription, then this type of advanced flexibility is needed.
A recurring billing system takes the payment stress off of the business and the consumer. Once in place, the system is a true time saver when it comes to company resources. With this platform, increasing custome