Online payments have become an important part of the modern lifecycle. From eCommerce to brick and mortar stores, businesses are offering the option to their customers to pay online. Online payment processing is a complicated process that is usually handled through specialized software. Recurring payment software is used by subscription-based businesses to ensure online payment security.
However, there are the following practices that are considered the best when it comes to collecting recurring payments:
6 Practices For Collecting Recurring Payments
Prioritizing Customer Data Security
The biggest concern that makes customers feel hesitant when they have to transfer money to pay their recurring charges is data security. For instance, many customers prefer credit cards to pay their subscription fee. Now, when it comes to the security of the data shared by the customer, they share their account details that should be kept secure.
Today, trusted payment gateways are integrated with subscription management systems to ensure the security of customer card information. You should also priorities the security of the sensitive information shared by the customer.
Permission before Transaction
Though subscription management systems provide feasibility to the customers that they do not have to process the subscription payment every month, rather the system does that automatically. It automatically deducts therecurring payments software from the customer account. What you need to do is to always notify customers before making the transaction of his due subscription charges. it will not only keep your customers notified but also protects you from any friendly fraud. The customer cannot make you liable to answer about the transaction without his permission.
Every day you come to know the cases of friendly frauds. Customers file for chargeback despite there being no case of payment failure or anything for which they would need to file for the chargeback. To avoid such scenarios, you should keep your policies transparent and clear to the customer. everything regarding your pricing and payment policy should be clear to the customer so that there will be minimal chances of any fraudulent activity regarding recurring payments.
Dunning is to communicate with the customer so that you can recover payments from the customers who got their payments cancelled. Dunning is not easy because customers who got their payments cancelled are already annoyed. To convince them is a taxing task.
However, automatic payment services providers offer dunning management. Dunning management systems offer you set templates to recover payments from your customers. Your tone is very important when it comes to dunning emails. Though you have to ask for your money that customer is liable to pay. But payment failures annoy customers. Thereby, automated dunning generates emails that are perfect to connect with the customer so as to collect recurring charges in the merchant’s account.
Multiple Payment Methods
Subscription-based companies have to keep their customers satisfied so that customers recurrently come to them. and just like the real world, customers in the digital arena are diverse. They belong to different age groups and have different preferences.
But your point of concern is to consider customer demographics and offer them the payment method that they easily and smoothly pay their subscription fee and stay onboard. Offering multiple payment methods is the best way to do that. You offer your customers the payment method that they feel is easy to use.
Multiple Payment Gateways
PayPal Payment gateways are important for data security. And being part of the subscription business market, you need to have multiple payment gateways. So that even if one gateway is down, the other remains active to avoid any hurdles in the payment processing. Sometimes, when you are offering products or services to international customers, the customer base demands a specific payment gateway. And you have no option but to integrate the payment gateways that your customer base prefers.
Collecting recurring payments in the merchant account directly links with the flow of the recurring revenue. If you want to maintain the flow of recurring revenue streams, then it is important to have a payment processing system that is easy for the customers. Use the methods mentioned in this article to collect your recurring payments in time and if you are looking for subscription management and the best recurring payment system, then call subscriptionflow experts.