In many cases recurring billing is a simple matter of charging the same customers the same amount on a regular basis. For a task like this there are many low-cost solution. However, some dynamic and rapidly growing companies need more flexibility. If your company is one of these, there are payment options that can meet your specific and ever-changing needs.
In some cases, various situations can make recurring billing quite complicated, and you may want to explore a range of features. Many basic payment processing systems are unable to meet these needs. Others can handle it with no problem. You can be prepared for whatever may come up, you do not have to be restricted.
Committed or Uncommitted Billing
The first option depends on how you interact with your customers.
With uncommitted recurring billing, your customer is not obligated to continue paying for any length of time, and you do not need to take collection action if the customer doesn’t pay. For example, if your business is a news site description, you simply discontinue service when a customer stops paying. At that point, the customer can either update their payment method or stop using your service. It’s up to you whether you want to try to regain their business.
Committed recurring billing involves contracts such as cell phones and gym memberships where the customer is up obligated to continue paying for a set length of time. In this case, when a customer becomes delinquent, you need to be able to attempt to collect on the past due amount so the account may be reinstated.
Payment Schedule Flexibility
Another option you may need his payment scheduling. For a membership site, you may bill for all users is that time. You may choose to process payments on a certain day of the month or at the beginning of every year.
If your payments on a set schedule, there are a few options. These include:
- Fixed payment plan – an agreed amount is paid for a set number of payments.
- Pay-as-you-go plan – payments are made on a regular basis until service is canceled.
- Rollover plan – hybrid schedule in which a set number of payments are made after which payments are made until service is canceled.
Another option is irregular payment schedules. For example if you accept debt payments, those might be made on specific dates that you arrange with the client such as when they are paid or when they receive a tax refund.
A solution that provides all of these options
Your business may require any number of other options. You need a payment system that cannot only meet your current needs but can also adapt to changing needs that arise due to market changes or policy changes within your company.
You may want to be able to suspend or reschedule payments, or you may want to allow your customers to prepay. If your payment system lacks flexibility, and your business will necessarily lack flexibility.
Our systems have all the features you need to adapt to your industry and your business. To find out how we can help you with your recurring billing needs contact us now.