Recurring bills are now a “normal” part of our lives. We’re all used to paying for our phone services, rent or mortgage, the Internet, cable and utilities at the end of the month. Usually, these billing systems allow us to set up automatic payments, which mitigates the hassle of resorting to your checkbook and the post office.
In the same way, if your business enjoys repeat customers that make regular payments, an automatic billing system will keep them comfortable and satisfied, while helping you decrease late payments and maintain steady cash flow.
Although recurring payments are mostly associated with ACH (Automatic Clearing House) check payments, merchants are increasingly adopting automatic credit card billing. Recurring billing with credit cards combines the conveniences of ACH payments with those of credit card processing, which mean easy payments, instant approval, and faster funding.
So, are you thinking of launching automatic credit card billing for your business? Let the steps below be your guide.
- Get a recurring billing solution
As with any other form of credit card processing, the first thing to do when setting up an automatic billing system is to get a merchant account equipped with a recurring credit card billing interface. Merchant account providers like eMerchantBroker will also offer to manage your customer database, invoice, run one-time transactions and set up recurring billing schedules for you, for a reasonable monthly cost.
- Introduce the new option to your customers
Your shoppers are probably already well versed on recurring credit card billing, but you will still want them to know the option is available in your store. You can send out text messages or emails, display it on your website or do it the old-fashioned post office way. Customers will be happy to hear you’re going the extra mile to simplify the payment process and will be excited to sign up.
- Receive customer authorization
Proper authorization from customers is essential because it sets your clients at peace that you’re confirming everything with them. It will likely also save you costly hiccups down the road.
Even after the customer signs up and authorizes automatic billing, it’s good practice to keep them in the loop and inform them every time you take out money from their credit cards.
- Set the specifics
Once your customers have authorized recurring billing, it’s time to determine the details of the program. Depending on your client and the billing solution you picked, you can set the timing, billing frequency, and payment amounts. You may also want to add a start date and an end date to create a finite payment plan.
Automatic billing is now as common a mode of payment as the cash-in-hand method. If you’re a business owner, make your repeat customers comfortable by offering recurring credit card processing services.