Recurring billing improves your profitability and cash flow by automating the payment process. Flexible recurring billing plans increase consumer satisfaction by making payments easy and convenient.
Recurring payments are commonly used for services and subscriptions. Among the fastest growing industries for recurring billing are SaaS providers and cloud computing, with growth predictions of $160 billion, including $95 billion in business and productivity applications.
Recurring billing models can be based on time intervals such monthly, weekly, daily or hourly. Or be based on how much a service is used.
Recurring billing uses tokens rather than card data for recurring payments. Cardholder data is encrypted and a token is assigned to the transaction. Recurring payments are processed using tokens.
Encrypted tokens for recurring billing keep you safe by eliminating the need to store card information on your systems. The burden of cardholder security for recurring payments passes from you to the payment processor. And helps you maintain compliance with payment processing security standards.
It’s not unusual for 5-12% recurring billing transactions to be declined during each recurring payment cycle. Every declined transactions means potential lost revenue.
Technology is now available that converts up to 70% declined recurring billing transactions into authorized recurring payments. When a recurring payment is declined, the transaction is sent to the issuing bank which automatically updates the card. Updates include expiration dates, card numbers and account closures.
The recurring billing transaction is then automatically resubmitted for authorization and payment. Once the recurring payment is complete, the money for the recurring billing flows to the merchant.
Recurring billing is convenient for customers. And profitable for you.
To squeeze the most profits from recurring payment transactions, without extra work, put technology to work for you. Update payment information without the need to contact the customer. Reduce expense. While extending the life-time value of customers.
Account updater services are available to companies processing at least $500K a month in volume.
Interested in finding out how your business can protect your recurring billing revenue?
Contact firstname.lastname@example.org today.