The Benefits of Implementing Recurring Payments

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Recently, recurring payment models have become a widespread trend, originating mainly from the birth of video streaming services like Netflix; it’s cemented itself as a lucrative opportunity for any business of any size. Whether it’s a big company like Uber integrating a membership system, or a local hardware store offering a buy now pay later service, every business is enticed by the consistent stream of revenue these models can provide.

For the unfamiliar, a recurring payment is automatically charged to a customer’s card or bank account on an ongoing basis. So instead of making a one-time purchase for a product or service, there’s a continuing charge that comes out on a set schedule.

There is an assembly of different channels that can process these recurring payments.

All-in-One Payment Processor

The simplest option if you’re looking to get started as soon as possible. Consumer-based processing solutions like Shopify, Braintree, Stripe, or Square, are all readily equipped to process recurring payments, in addition to providing robust tools for you to intimately adjust your subscription offerings

Accounting Software

Accounting software just provides the essentials to process recurring payments without any frills, so those looking for a stripped-down solution could try Quick books or FreshBooks

Payment Gateway

Signing up for a payment gateway is a relatively simple way to integrate recurring payments. Price can vary, as some payment gateways charge extra for providing the option for ongoing charges

Subscription Management Platform

If you’re looking for a less hands-on approach, investing in a subscription management platform could be the way for you to go. Services like Recurly and Chargebee work in between the merchant and the payment gateway to manage all unique subscription-based problems. Handling customer card issues, membership cancellations, and any general customer service regarding their membership. This is however the priciest option.

Integrating Recurring Billing

How you implement recurring billing varies on which channel listed above is best for your business. You could be…

• Enabling ACH recurring payments through your processor
• Establishing a hosted payment page on your current website
• Adding a subscription management service to your merchant account
• Integrating with a payment gateway
• Enabling recurring payments through your payment processor’s backend

Businesses Benefiting from Recurring Payments

A few industries are benefiting greatly from the current spread of subscription services/recurring payments. It’s incredibly surprising how many businesses in these industries still rely on one-off invoices.

• Perfume/Cosmetics
• Tutoring
• Food and Drink
• Wellness
• Household essentials
• Household cleaning services
• Agencies
• Gaming
• Coaching

With a little outside-the-box thinking, any business can take advantage of a constant cash flow by implementing some sort of recurring billing option.

Main Benefits in Recurring Billing

There are three big advantages businesses will notice when utilizing recurring payments in some fashion.

Time Saved Bill Collecting

When working on a constant revenue stream, it’s easy to get lost in the day-to-day invoice creation and payment collection. By implementing recurring payments, you immediately carve yourself out more time in the day to focus on high-priority tasks.

Sustain Customer Loyalty

Establishing a long-term commitment with your client base helps sustain customer retention. Creating a habitual, pleasing, and most importantly, beneficial experience for your customers cements trust.

Get Paid Faster

Clients are automatically charged in a recurring billing setup, so waiting to get paid is a thing of the past. No more restless anticipation while your client waits to pay at their leisure, you can always have faith in a certain time and a certain date.

Your First Steps in Integrating Recurring Payments

If implementing recurring payments is the next step in your business’s journey to success, there are a few things you can do to get started. If you’re currently set up with a payment processor, they may already offer a recurring payment option that can be easily implemented. And, if you’re employing a consumer-based option like Square or Shopify, asses the built-in services they provide and see if it’ll be a fit.

If you’re currently looking to switch payment processors, contact us at RevitPay. We’re a payment processing solutions company, equipped with the resources to match you with the recurring payments setup that best compliments your business.

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