What Are Recurring Payments and Its Benefits For Business

Life and its various tasks and duties can get you so overwhelmed that you forget to do the basic things required of you each month. Everyone has bills to pay, and most are due each month, but we will admit that we don't always remember to pay and on time too.

Merchants and service providers are often angry at us, the consumers, and tend to pull a legal one on us because of a lack of payment. This issue then is the reason for having a recurring payment system that allows you to pay for goods and services at their appropriate timing automatically. A recurring payment system has its ups and downs but has potential benefits for those who use it.

Benefits of Recurring Payments for Business

Recurring payments or as many people call it "subscription billing" is an efficient way for businesses to conduct transactions without the hassle of manually doing it each day, week, or month. For many companies and brands that offer goods and services, they have noted their workload has become a lot easier.

They indicated the recurring payment benefits betrothed to their company from the different systems they use had granted them the privilege of keeping track of their finances and reports with ease and flexibility. However, some companies don't believe in the system (mainly as a result of trust issues). But for those who have been using, they have sighted benefits such as:

Improve Customer Retention

With a subscription payment plan, it provides ease and flexibility to both merchants and customers. It can be a burden to manually approve the same payment each week or month before services are provided. With recurring payments, a one-time authentication agreement is made between both parties to have the customer's account debited at the beginning of each billing cycle.

It reduces the stress for customers who are often overwhelmed with other duties and may miss the dates. Many people have the perception that a recurring payment system is for those with bad time management, but in reality, when the workload strikes, it's an entirely different story.

Decrease Late Payments from Customers

This point is a truth unknown to many that your account balance runs low pretty fast all because of late fees. Most businesses charge a high percentage when payments are late, and if you are not careful, this could put a terrible dent in your finances. That is why it is crucial to have a recurring billing system connected with your account and merchants to avoid this issue.

Because deductions are automatically made on or before each due date with a subscription payment, you save extra cash each month. For merchants, the reduction in late fees saves time spent on sending out invoice reminders or having to chase down late customers. While for customers, these systems take care of the due date issue as well as ensuring all payments are made on time.

Secure Customer Payment Information

Because recurring payment systems have access to deduct money from an account, rest reassured that the security system in place will help to protect your account information efficiently. Most people are skeptical about the risk of having their personal information online (or granting special permissions). However, the regulatory body, Payment Card Industry (PCI) has strict rules against any party that breaches the rights and agreement made for payment. They have installed mechanisms that will secure all your details in a non-accessible data storage platform, safe from all third-party internet users.

PCI Compliance

The Payment Card Industry (PCI) is a regulatory body that seeks to ensure all online payment card users are safe from illegal or questionable persons. It is a body that sets guidelines and monitors the use of branded credit and debit cards and protects them from major card schemes.

When it comes to recurring payments, the “PCI puts merchants to task in ensuring their customers' and clients' data is secured and cannot be accessed by any third-party”. They set a compliance standard that all merchants must sign a non-disclosure agreement for in protecting sensitive information. Bear in mind, a leak of such confidential information can lead to a financial woe as well as identity theft.

Benefits of Recurring Payments for Customers

Merchants are not the only ones to benefit from a subscription payment plan, but consumers just the same. Just the thought of having a burden released off your shoulders each month is comforting enough. For customers, there are numerous benefits to gain when they use a recurring subscription plan, such as:

Control Payment - For those who have to balance their books each month manually, they will tell you of the headache it causes. When you have a recurring subscription plan, your payments are controlled and automatically updated. This feature creates the opportunity for you to review your reports and make adjustments as needed. Less time-consuming and much more efficient.

Remove Late Fees - Imagine if you had to pay 5% of your required payment in fees each month? That would undoubtedly be a whole lot to lose out on. With a recurring payment plan, your payment will be on time, and late fees eliminated.

Convenience - There is nothing more frustrating than having to do multiple payment approvals each month, especially when you are stuck on a busy schedule. Seeing the transactions are done automatically, it gives you the chance to check in but once in a while if all is going well.

In conclusion, though some recurring payment systems have their pros and cons, it is a great option to implement in your marketing strategy. It creates ease, flexibility, stability, and allows both merchants and customers to have a good working relationship. No need to worry about security issues as this is one of the main priorities of the Payment Card Industry Data Security Services.

A Trusted Service To Implement

Many people are unsure about which recurring payment system to use mainly because of trust issues. However, engaging the services of Payvoice will guarantee a positive result for your business. This app gives you the opportunity to effective bill your customers (multiple page billing available) and keeps a steady track of your financial report on the go. It has a trusted security system, so both merchants and consumers can feel comfortable in using knowing their sensitive data is protected. They offer affordable pricing packages that you can choose from and that which best suits your company. Based on reviews and the features of the system, it is one of the best recurring payment platforms for Stripe available.