When marketing and selling, the biggest hurdle for any business is closing the sale. Once the customer agrees and pays, they start enjoying the products and services, and that’s a pleasant experience. But every time a customer receives a new invoice, it’s like a miniature sales transaction. They are reminded of the cost, and may feel the financial pinch.
One pinch is tolerable. One a month can become aggravating to the point that customer loyalty is threatened. In an ideal world, the customer would never see an invoice or be reminded of a payment due or past due. They would just continually enjoy the products or services. Now, thanks to payment processing technology that can quietly and unobtrusively manage recurring payments, that kind of ideal world is actually possible.
Enabling Subscription Services
Recurring billing software has already dramatically and profitably changed the world of business. Subscription services that rely on recurring payment models used to mainly be utilized by magazines, newspapers, and fitness gyms. Now consumers opt for recurring payments on everything from software to healthcare and from website hosting to wine tasting.
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Reduction of Overhead
Even businesses that don’t use a subscription model are reaping the benefits of automated recurring payment systems. Once a recurring billing cycle is set up and put into motion, the entire process becomes hands-off for both the business and its customer. Employees don’t have to prepare, print, and process invoices. Since there is nothing to mail, there is no need to budget for paper, ink, envelopes, or postage. The customer can no longer claim that “the check is in the mail,” because payments are processed instantly and electronically, and funds are delivered and accessible almost immediately. That facilitates cash flow, while also freeing up paid employees to focus on more meaningful tasks like customer service.
Minimizing Error and Redundancy
When recurring payments are processed on the right kind of platform, the risk of human error or redundancy is also minimized. The possibility of mistakenly double-billing a valued client is virtually nil. Check fraud, which is a costly and rampant problem, is stopped in its tracks. Level 3 processing, PCI compliance, encryption, and tokenization, are all enabled – hardening security protocols in ways that traditional payments methods cannot.
Meanwhile, those making payments also gain similar benefits. There is no longer the possibility of mistakenly sending a check in the wrong amount or without an authorized signature. There is no risk of identity theft when paper invoices fall into the wrong hands. Late payments, and the penalties and other negative repercussions that follow, are basically removed from the equation.
Comprehensive, Customizable Solutions
Hosted payment processing systems that facilitate secure recurring billing also offer flexible features such as installment payments, mobile payments, and simultaneous processing of transactions across multiple locations. Businesses both large and small can take advantage of transparent billing that conveys their own unique brand – including logos. It’s also possible to use one centralized, cloud-based payment platform to process payments in practically any currency. Get paid from one merchant account or e-commerce site, or thousands of different ones, 24/7.
Plus, if a business uses recurring billing they can more accurately and automatically project future revenues. It’s no wonder that recurring billing is gaining in popularity and changing how business is done in today’s global marketplace.