Recurring payment processing is something that can actually add additional advantage to your business. As a merchant, you will have to admit that we are living in a technologically advanced time. Here, merchants cannot go with those old traditional payment methods. They have to know what customers want and as per their requirements, the merchants will have to take action. Anyway, if you see the current scenario, it will not be so difficult to understand the requirements of the customers. Living in a cashless society, customers will not go with paper checks or cash in their pockets. They are actually giving importance to the cashless transaction. Talking about the current situation, people are not coming out. Merchants who are following retail’s business structure are actually facing problems. Yes, the entire offline payment system has been stopped. Amid this situation, online payment solutions can be the ultimate savior. When it comes to online payment, there are different options available for the merchants. One such option is a recurring payment.
Understanding Recurring Payment Processing
A recurring payment is a kind of automatic payment or subscription payments. It generally occurs when the customer gives authorization to the merchant for charging them repeatedly in exchange for the services or goods on a prearranged schedule. Well, it can be daily, annually, weekly or monthly. The recurring payment is highly beneficial for those merchants who are running a subscription-based business. Well, the online merchant processors play a very important role in this dynamic ecosystem of the recurring payment. Yes, they take care of the most operations- from collecting the payments from the customers to processing those recurring payments on behalf of the customers. They also take care of the security and apart from this, they also deposit the fund in the account of the merchant.
Steps Involved In Recurring Payment Processing
Well, there are several steps involved in this recurring payment processing. We have explained the steps here:
- First of all, the customers visit the online marketplace and then they choose the recurring payment mode as the payment option.
- Then, customers accept the terms and conditions that are inextricably associated with the recurring billing process at the final checkout page. It is a very vital point. During this time, the customers will have to agree with the fee structures, amount charged, expiration date and payment schedules. These aspects are inextricably associated with recurring payment processing.
- After this, the customers will enter their credit card information. They agree to save their card details within the invoicing software of the business.
- After this, it works like a normal credit card transactions. Yes, the payment processor contacts the issuing bank, credit card network, and the acquiring bank of the customer. After this, these parties generally give approval to the transaction. Then, the transaction amount is released and the merchants get the amount in the merchant account.
- Customers get an invoice when the business processes the recurring payments. Some businesses also notify the clients regarding the recurring payment processing every month. Some merchants notify the clients that the automatic recurring payment will be processed soon.
Advantage Of Recurring Payment
Well, there are various benefits that the online merchants will get after enabling the recurring payment in their business. There is no doubt that recurring payment is getting popularity in the diverse ecosystem of e-commerce. A merchant can get endless benefits from recurring payment processing. We have added some of them here:
Speed Up The Overall Transactions
Well, automated billing or recurring billing is completely an automated process. It generally occurs electronically and this entire processing requires almost zero maintenance. The merchants will not have to chase payments and the merchant processor will take care of everything. The recurring payment processing is instant and real-time. Therefore, the merchants will not have to wait for a long period of time for getting the payment in their bank accounts. In the end, the recurring payment processing system will speed up the overall transactions.
Recurring Payment System Will Save The Time
Well, the recurring payment system is one of the most efficient online payment modes. It is helpful for both the merchants and the customers. Recurring payment processing saves a lot of time as well as energy. The merchants will not have to notify the customers again and again. The entire process is automatic and therefore, the merchants will get the payment on time. Moreover, they will be able to predict their monthly revenue. Apart from this, the merchants will save a lot of time. Yes, they are not calling the customers again and again for payment. Everything becomes automatic and therefore, the merchants can utilize this time in other operations.
Not A Rapidcents Merchant?
Well, Rapidcents is an online payment processor. It is one of the reliable and secure platforms that will fulfill all the requirements. It adds more value to each online recurring payment. Moreover, the support team will assist the merchants 24×7. So, what are you waiting for? Become a merchant of this platform today.