By Nodus 18 June 2019
Why Merchants Should Offer Recurring Billing
Just like merchants look to automate their internal processes, buyers look to simplify the way they can pay their bills. Whether businesses are in the B2B space, selling to other businesses, or the B2C space, selling to consumers, odds are their customers are looking to pay their bills in the most convenient way possible.
When and Where to Use Recurring Billing
Customers with unique invoices or payments may not opt in to an automatic payment option. Some invoices need management approval or review to ensure the amount is accurate. However, for repeat customers who make routine payments to a company, an automatic payment option may fit their needs. Consistent, recurring bills rarely need much attention or approval from the customer before being paid because the amount is fixed and/or predictable. Therefore, customers may prefer to have these payments made automatically to not only reduce their workload, but also to avoid late payments and coincidentally have their service shutoff or product delayed. The added convenience of recurring billing can also improve the customer’s overall experience with a company.
Benefits to the Merchant
Recurring billing benefits the merchant as well. For one, it increases the likelihood that invoices will be paid in full and on time. It also prevents the merchant from having to process recurring payments manually, one-by-one, which can easily add up when the charges tend to be billed to every customer at one specific time during the month or year.
In addition to convenience, recurring billing can also help with security as the client does not have to provide the raw credit card data each time they need to make a payment. For example, if they have to call in to a company each month to provide credit card information, they are routinely disclosing their sensitive payment data. This can increase the risk on their side, as well as expose the merchant to more risk, who then has to prevent employees from wrongly storing the payment data when they receive it. A busy accounting clerk may not have time to process the credit card when the customer calls in, so writes the credit card number on a piece of paper which can then be lost or stolen. By providing a way to enter the payment details one time, companies can reduce the risk of exposed credit card data for all parties involved.
A Few Things to Keep in Mind
Always give your customers an easy way to manage or cancel their recurring billing. You clearly do not want to lose your customers, so keeping them satisfied with both your service and the ease with which you do business will help keep them happy and loyal. This will naturally decrease chargebacks from angry customers and can increase the amount of business that they do with you.
If you decide to keep customer’s payment information on file, ensure that you are storing the payment data securely. If you are a merchant who is accepting, processing, and/or storing credit cards, you are responsible for maintaining PCI compliance and protecting your cardholder’s data. Merchants should look into using payment software and gateways that are certified with PCI and that take added measures to protect sensitive credit card information.
How Nodus Can Help
Nodus offers a recurring billing module that will automatically create recurring invoices and process recurring payments. Nodus’ recurring billing module uses PayFabric in the backend to remove all sensitive payment information from the merchant’s environment by storing it securely in the cloud.
To learn more or to schedule a demo, contact us.