Most companies don't think of invoicing as an expense. In fact, billing customers is precisely how you grow your business.
But every time you send, receive and process a new invoice, there are hidden costs along the way:
- You must pay employees to handle all of these bills.
- Traditional billing systems rely heavily on expensive materials such as paper, stamps and printers.
- Don't forget the resources spent picking up and dropping off bills at the post office.
Those expenses occur even when invoices are paid on time. When you factor in late payments and lost bills, the actual cost is much higher.
However, it's not just cost you have to worry about. Conventional billing systems also make it harder to retain customers.
Every invoice that your clients receive is a physical reminder that they’re losing money. The value they receive from your products and services can become overshadowed by the pain of having to manually pay and send each bill that comes their way. Not only that, but clients may find having to pay an invoice by paper check and mail it is an inconvenience, or they may feel that writing their credit card number on the remittance slip and sending it through the mail isn’t secure.
This is why we strongly encourage our own clients to take advantage of recurring billing.
How Does Recurring Billing Work — and What Are the Advantages?
Think of recurring billing as a subscription-based invoicing system in which bills go out and payments come in without the customer having to directly intervene.
Each month, the money is deducted from the user's bank or credit card account. All future payments are processed automatically until the user deliberately opts out of recurring billing.
There are several benefits for you (the merchant), including:
- Significant cost reductions. You're able to invoice clients using fewer materials (i.e. paper, ink, stamps). There are no more visits to the post office. And you don't have to pay employees to process each statement.
- Fewer late and missing bills. You’re able to accept payments around the clock — even after business hours. Plus, your customers no longer have to take time out of their day to find stamps or visit the post office. All deductions occur automatically.
- Higher customer retention. Think about all the gym memberships and cable TV subscriptions that continue generating huge revenues simply because the payments remain out of sight and out of mind. Unless a user manually opts out of recurring billing, the payments keep coming.
- Enhanced corporate image. Recurring billing makes it easier to reduce your organization's carbon footprint. You can promote those environmental savings to your customers and improve your overall corporate social image.
These are just some of the primary advantages of recurring billing software. Why should you establish recurring payments specifically with BluePay?
BluePay's Unique Approach to Online Recurring Billing
There are several features of BluePay's recurring billing software that distinguish it from countless other options.
First and foremost, all of our payment solutions benefit from PCI-compliant data security including tokenization. You also have the option of using our advanced fraud management tools, like velocity filter and threshold.
Our recurring billing solutions also include:
- Easy setup — for you and your customers.
- Auto reminders to help you reduce delinquent payments even more.
- Payment integration with some of the most popular business platforms on the market, including Salesforce, QuickBooks, Microsoft Dynamics GP, Oracle JD Edwards and countless others.
To learn more about BluePay's recurring billing solutions, use the free links below: