2017 has seen various new payment technologies. The most popular among online store owners undoubtedly being the recurring billing service.
And it’s not hard to see why- this convenient system has created a payment process so easy it’s almost invisible, making it popular for both online store owners and customers alike.
Here is our guide to getting your business set up with recurring billing services while protecting the integrity of your customer’s information at all times.
What Is a Recurring Billing Service?
A recurring billing service refers to the process whereby a business owner automatically charges a customer for goods or services on a scheduled basis.
This service is particularly useful when it comes to any business that requires frequent payments, such as electricity bills, mobile bills, gym membership fees or magazine subscriptions. Also referred to as a subscription billing.
A recurring billing service requires the permission of the cardholder and a payment provider that allows the scheduling of such payments.
What are the Benefits?
For a merchant, the benefits of recurring billing include the following:
- Reliable cash flow –A consistent cash flow holds obvious advantages for business owners, however knowing exactly when you’ll be paid helps plan for your future.
- More paid invoices – You won’t be chasing up customers to pay invoices, freeing up time for more important things.
- Smaller processing charges – You’d be surprised at the cost of posting out invoices and paper bills and how much direct debits can save you.
- Increased loyal customers – Subscription billing means you have a pool of repeat customers – a huge advantage when considering the cost of customer acquisition. These customers will also establish a relationship of trust with you.
For customers, the benefits are also immense, including:
- Predictable spending
- Reduced penalty fees from forgetting to pay a bill.
- Increased convenience
- Less environmental impact
What Do I need to Set Up Recurring Payment Services?
To be capable of establishing a recurring payment service, you need the following things;
- A Website– your online shop
- Internet Merchant account-a holding account for your customer’s payments before being transferred to your business bank account
- Payment gateway-the safe pipe through which payments securely move from your website to your bank and then to your internet merchant account
You can’t use just any payment gateway. You need a provider that allows you to make recurring payment transactions, one such as Safe2Pay.
If you don’t have any of these things, don’t worry Safe2Pay can organise it all for you.
Make Security a Priority
If you’re going to be using a recurring payment method, it’s important to ensure the way you handle your customer’s credit card data is as secure as possible.
You should make sure you only use a provider which is level 1 compliant with the Payment Card Industry Data Security Standard, who offers built-in security capabilities such as tokenisation. Without a secure payment gateway, you leave yourself and your customers open to higher risks of fraud.
Choose a Payment Gateway Who Takes Security One Step Further
With a recurring billing, it’s crucial you have a payment gateway that allows you to tokenise payment information, to ensure no sensitive data is stored within your working environment.
Tokenisation is the process of replacing sensitive payment data with a non-sensitive equivalent, referred to as a token, which has no meaning or value rendering it useless to scammers.
Safe2Pay has a unique tokenisation gateway, that can be used to initiate new payments for recurring billing purposes or one-click buy types of checkouts.
A randomly generated token is sent to the PSP system for payment. The PSP then decrypts the token to retrieve the original payment information. The information is then used to process the transaction and transfer funds from the buyer’s card or bank account to the merchant, without the customer’s data ever being at risk.
Sign Up with Safe2Pay
Establishing a recurring billing service into your online store can be an industry game changer. A subscription component to your business will allow you to keep track of your finances, save money and establish a loyal customer base.