As a merchant, recurring payments offer a host of important benefits, including:
- More predictable cash flow. By knowing in advance what money is coming into your account, you can make better-informed decisions about the future.
- Fewer missed payments. Save both time and money by not having to chase down delinquent bills.
- Reduced processing fees. With electronic and recurring payments, you can avoid many of the expensive fees associated with paper-based checks.
- Higher customer retention. In order to stop future payments, customers must deliberately opt out of recurring billing.
But how do consumers benefit from recurring payments?
The Advantages of Recurring Billing for Consumers
There are a number of benefits for customers who enable recurring billing. The following outlines some of the key advantages you should promote in your marketing materials:
1. Fewer Late Fees
Many businesses attach penalties to late bills. Customers can avoid these unnecessary charges by setting up recurring payments in advance. This benefit is especially important for those who travel frequently and don’t always have access to invoices or checkbooks.
2. Greater Convenience
By making future payments automatic, customers no longer have to log in to their accounts each and every billing cycle. Once they set up recurring payments, they can focus on other, more important things.
This worry-free, hands-off approach is particularly useful for subscription-based services (e.g. cable and gym memberships).
3. Environmental Savings
All over the country, Americans are becoming increasingly focused on environmental issues like climate change and global warming. You can appeal to your customers' eco-conscience by offering electronic payment options that don't require paper-based invoices, checks or receipts. With recurring billing, all transactions happen digitally and securely.
4. More Manageable Spending
For larger purchases, customers might not have enough money in their bank accounts to buy your products and services. But with recurring payments, they are able to spread the cost of big-ticket items over several billing cycles.
5. Faster Payments (and Better Control)
Electronic and recurring payments allow consumers to send in money more quickly.
This is an obvious benefit for you. But how does this help your customers?
When using paper-based checks, there is often a delay between the time a check is sent in and the time that check successfully clears. This processing lag makes it harder for consumers to know how much money is truly in their bank accounts. Even meticulous record-keepers can sometimes get hit with overdraft fees.
By contrast, recurring payments are both automatic and immediate. Customers know exactly how much money is in their bank accounts.
Ready to Set up Recurring Payments for Your Business?
Getting started with recurring billing is a simple two-step process:
1. Enable Recurring Payments
First, you need to make sure that your payment processing is able to handle secure, recurring billing. If your account isn't already set up for this, simply contact our recurring payments department and we'll enable this feature for you.
2. Let Your Customers Know
Second, you must promote the fact that you now offer recurring payments. Because customers may not always understand the many advantages that this option offers, use the above list of benefits when crafting future marketing materials.