The ability to set up recurring billing allows merchants to simplify the monthly billing process, reducing late payments and providing customers with a convenient billing solution. Through recurring billing, you can automatically debit customer accounts with the acceptance of most major credit cards, debit cards and ACH payments.
Benefits of recurring billing include:
• Improved cash flow and customer service
• Automatic scheduling to help save time and money
• Paperless process leads to reduce waste and costs
But what about security? Recurring billing requires safe storage of customers’ credit card numbers for later use. With the consequences of security breaches including hefty fines for businesses, some merchants may be hesitant to store personal information and be held responsible should identity theft or fraud occur. That’s where tokenization steps in.
Your merchant account service provider can store credit card information safely for you, using a system called tokenization that replaces sensitive information with a “token.” If hackers attempt to break into the database to steal information, instead of credit card numbers, they’ll find tokens that are useless to them. Tokenization reduces your business’ liability and allows you to implement a recurring billing system safely and effectively.