Recurring Billing Overview

Recurring billing increases cash flow and decreases operating expenses by automating payment processing for recurring payments. Automation of recurring payments boosts productivity, improves internal accounting systems, and enhances customer retention life cycles.

5 Valuable Services for Recurring Payments

If you are serious about protecting your recurring payments revenues and maintaining your profit margins, start taking advantage of these special recurring billing benefits today.

• Protect Cash Flow. Stop revenue leakage from declined cards. During each recurring billing cycle, 5-12% of cards on file are declined, representing a big potential dip in monthly revenues. Payment processing technology stops cash flow leakage by updating card information with the issuing bank and automatically resubmitting the declined recurring billing transaction. As a result, 50-75% of declined card transactions are transformed into approved recurring payments.


• Get More Money. Cards submitted for recurring payments may not have enough available funds to cover the recurring billing transaction. The payment processing system electronically tracks the card until funds are available. Then, the recurring billing transaction is resubmitted and the monies due for recurring payments are authorized for payment to you.


• Retain Customers. Descriptors are what customers view on monthly card statements as the description of the purchase. The payment processing system enables each product or recurring plan to have its own descriptor, including a separate customer service number. By displaying a specific product descriptor, customers immediately know what was purchased when the recurring billing appears on their card statement. Chargebacks are avoided, customer service calls are reduced, and customer retention is increased.


• Safeguard Business Operations. Shift liability for security breaches away from your business. Tokens are used for recurring billing transactions in lieu of card data. No card information is stored on your internal systems. Keeps you compliant with PCI regulations for payment processing and mitigates risk.


• Reduce Payment processing Costs. Reduce operating expense by connecting directly with the front/back end payment processor rather than using a payment processing gateway. Direct connection gets rid of extra transaction fees charged by payment processing gateways which drive up costs unnecessarily. Direct payment processing connections can also reduce interchange costs resulting in substantial savings on payment processing discount rates.

How to Maximize Revenues from Recurring Billing

Most payment processors offer basic recurring billing functions such as unlimited recurring billing profiles and flexible recurring billing terms. But, basic features are not enough to maximize revenues from recurring payments.

The ability to handle recurring billing exceptions for card declines, card expiration dates, and lack of available funds on cards is vitally important to protect recurring payments revenue. And, you should expect your recurring billing payment processor to give you new ways to increase customer retention, safeguard business operations, and positively impact your profit margins.