Recurring Billing Merchant Accounts

The pros, the cons, and the BankCard USA difference.

What is Recurring Billing?

Recurring billing, also known as subscription billing, is an agreement between a business and a customer that allows the business to automatically charge the customer’s account according to set terms. The customer gives one-time permission for the business to withdraw multiple payments over a prearranged length of time. Merchant service providers facilitate automated recurring billing (ARB) via both credit cards and electronic checks. Modern payment technology, such as tokenization, ensure the secure passage and recurring use of sensitive card data. When it’s set up effectively, ARB yields notable benefits for the business.

ARB Pros

For the customer, ARB means more convenience, no missed payments and, as a result, no lapses in supply of product or service. It takes the effort out of making payments. However, it’s a double-edged sales model. There are some hallmark mistakes businesses tend to make that commonly give rise to customer disputes and end in chargebacks.

ARB Cons

On top of these pitfalls, there’s also “friendly fraud” to consider. The longer payment agreements are, the more time customers have to change their minds and dispute them. Changes in disposable income can also contribute to this buyer’s remorse. Add to that the possibility of dissatisfaction claims from first-time subscribers, and the challenges of ARB become steeper to navigate.

Payment Solution Perks

When you integrate a payment solution uniquely designed to meet your business’s needs, you can focus more on the benefits of ARB rather than the burdens it can potentially impose. BankCard USA offers guidance and support in areas ranging from chargeback and fraud prevention to refund policy and advertising verbiage. By shielding your business from financial loss, we’re protecting our investment in it, and, in turn, can offer you lower rates. In fact, our low rate guarantee means that we will beat the rate of any verified provider. With a recurring billing merchant account from BankCard USA, you get:

ARB is popular for health and fitness memberships, software-as-a-service (SAAS) providers, property managers, utility companies, loan collectors, magazine subscriptions and many other goods and services that are provided over a length of time.

More and more traditional retailers, like clothing stores, are transitioning to online membership billing as well. Memberships offer buyers special deals and other rewards that complement single payments and ultimately build customer brand loyalty. A prominent example is the Costco membership. All in all, subscriptions foster long-term relationships with customers and help a business grow and compete in an increasingly subscription-based economy where convenience is king.

Effortlessly collect recurring payments and free up your valuable time with a recurring billing merchant account. We can help your business manage fixed or rolling renewals, multiple billing options, automatic prorating, easy upgrading and downgrading if you offer different membership tiers, discounts and more—the choices for customization are all yours.