A recurring payment, sometimes known as the term “subscription”, recurring billing or automated payment is an electronic payment subscription system that is repeated according to a pre-determined timetable.
Businesses frequently create recurring payments to collect charges for lessons, memberships, or other services. Customers who make recurring payments must sign a one-time authorization.
The most convenient way to accept payments that are recurring is by using an all-in-one payment processor, or merchant account which handles payments, but also comes with software that manages the billing process as well as security features to guard the information of your customers.
The Reason You Should Invest in a Reliable Subscription Payment Gateway
The majority of customers are comfortable with payment systems online. They are now looking for a secure and simple method of buying and, if you do not provide that to them you could be left in the dust.
There are a variety of reasons why you must choose a trusted payment processor, for example:
- More sales: If your customers aren’t confident about the method, you’re using to process payments, or if your payment gateway does not function correctly, they’ll quickly quit their purchase and look for the services they require elsewhere.
In the case of subscription companies losing customers to competitors could be extremely costly, as you lose not just the initial sale, but also all the revenue recurring that a subscription model can bring.
- More confidence in your customers — The experience your customers have when purchasing is important. If you offer customers various legitimate and reliable ways for payment, it will guarantee more confidence in your customers.
- Rates of conversion — A study revealed that half of consumers would be unable to complete their purchase if they were pay with the method they prefer. Customers expect a smooth and easy checkout.
When you make this an important goal, and focus on the top subscription payment gateways, better conversion rates will come.
5 Checklist to Choose the Best Subscription Payment Service for Subscription Website
Since there are many payment options available on the internet you can pick one of them to run the online store you run. But, ensure that you choose one that has “must-have features” to ensure an easy customer experience.
We’ve put together an outline of the requirements to inform you of what must-have features you should consider that a payment processor online should have. Let’s go through it prior to making the decision to purchase the payment gateway.
1. Recurring Billing
Recurring billing permits retailers to establish an automatic payment cycle for their customers, which makes it a must for businesses that have regular payment schedules.
Additionally, nonprofits have discovered benefits in recurring billing because it allows organisations to collect money from regular contributors easily.
2. Merchant Account
What is a Merchant Account? It’s the account used by consumers when they pay online using an online payment processor; the funds are temporarily transferred to an additional retailer account. This is distinct from the bank account that actually has.
The money that is kept in a merchant’s account will be held until it is accepted by the processing bank of the customer. After approval, the cash will be transferred into the account of the bank.
Although it may appear like an extra job merchant accounts offer an additional layer of security and management of funds for buyers and sellers alike.
In addition, certain payment gateways don’t require the establishment of a merchant account, and can pay money direct to the seller’s bank account. In these cases, the payment gateways may charge a more expensive processing fee.
3. Types of Cards Allowed
The most frequently used credit card types are Visa, MasterCard, and Amex. These card types are accepted by the majority of payment processors. But, if your clients typically pay using other types of credit cards such as debit cards or Diners Club card, you should ensure that your payment gateway supports the card you are using.
4. Multiple Currency Support
If you conduct business internationally, it is important to ensure that your payment processor can accept payments in various currencies and from various countries. It is essential that your customers can pay using their own currency. This gives customers in the local area more flexibility to conduct transactions through your website.
5. 24×7 Customer Support
A number of payment gateways restrict their support to email or tickets. In this case, users must follow the manual instructions to solve a issue.
If the site’s owners are more comfortable speaking to someone rather than emailing, be sure to check if the website owner is able to provide live technical support at the very least, within normal hours of operation so that they can swiftly fix any technical issues.
Conclusion
It’s not a secret that recurring payments are an important instrument for managing your company’s monthly subscriptions. It is equally important to select a system that is specifically tailored to the requirements of your business.
It is easy to get lost in the world of subscriptions and regular payment can be a bit overwhelming. It is our hope that any of the instances will show that it doesn’t need to be.
These platforms are only one of the options in the field of the recurring payment providers.
However, we believe they’ll make your life significantly simpler, allowing you to put your time and energy to the areas that are most needed.
What do you have to be waiting for? Now is the time to start your subscriptions!
