Nowadays, people are interested in buying things online, and most bills are paid through online money-based transactions. From EMI to monthly bills, these payments can be paid through automatic recurring payment. This technology is preferred by most merchants who offer some of the best monthly products. Merchants can install these automatic recurring billing providers on their websites to reduce the monthly financial stress. Many gateways offer this automatic recurring payment, and among them, some have gained more attention. Let us now take a look at this concept of the automatic recurring billing process.
What is an automatic recurring payment?
Most people, including the general population who are not aware of digital development, would have made the automatic recurring payment without realizing it. This is a technique where a particular amount is automatically removed from the customers’ bank account with their permission during the initial phase. Most people who have obtained a loan or a service from an organization that requires years of work will have automatic recurring billing procedures embedded within their bank account. In this automatic recurring billing technique, a particular sum is removed from the customer account each month as payment through automatic recurring billing.
What are the areas of implementation for automatic recurring payment?
The automatic recurring payment can be processed by implementing one of the best payment processors within their website. There are multiple processors available in the market. These automatic recurring billing gateways are generally used only in some categories, and let us now look at the automatic recurring payment implementations.
● The automatic recurring payment system is used by the financial sectors like banks, insurance, and mutual funds for regular payments.
● Some applications also use the automatic recurring billing process for receiving monthly charges.
● Mobile phone companies also use the automatic recurring payment method for clearing their automatic recurring billing payments.
● This payment method is used in private financial sectors for receiving the loan amount regularly.
Depending upon the merchant’s business and other requirements, these automatic recurring billing processes are initiated with the customers. Even though this automatic recurring payment process does not require the user’s permission each month, they can cancel it anytime with the bank to ban the payment.
Best automatic recurring payment providers
There are many options available for automatic recurring billing processes.
WeChat Pay: This payment provider offers services which has created a unique social community for users all over the world. It enables all connections between people, users and businesses, and users and organisations. This payment gateway also offers facilities such as QR code payment, QuickPay, web payment, In-app payment, Mini program payment, and OfficialAccount payment.
Alipay: This recurring payment gateway simplifies the automatic recurring billing process. It contains a unique dashboard for maintaining the transactions.The automatic recurring billing product has evolved from a single payment tool to an open platform with payment services, vital services, government services, financial management, insurance, public welfare, social networking, and other scenarios.
OPASST: This automatic recurring billing is one of the most accepted payment agteway. Even though they are not faster than searching top-notch payment gateway in the market, this automatic recurring billing can still perform secure transactions and recurrent billing.
Similarly, the other models like SimpleWave automatic recurring billing have also lost their customers due to simple chargeback options and delayed delivery of the products. The speed is better than a general agency service. But when compared with the efficient automatic recurring billing solutions offered by other products, this might be a thought that will exist within people’s minds.
Why choose Oceanpayment?
Oceanpayment is a leading online payment gateway provider that offers a variety of automated recurring billing solutions. Depending upon customer requirements and need for money, the experts will offer the best solutions.
Automatic recurring payment is an effective way for companies to collect payments, which also provides good payment experience to customers. When performing recurring payments, different payment service providers have different methods and fee structures. Let’s take a closer look and find recurring payments easily for your business.
What is subscriptions and recurring payments?
Recurring payments are repeated payments based on the subscriptions. Customers do not need to appear in person or virtually to process the payment. Instead, customers agree to share their payment information (usually a debit or credit card) with the payment processor and charge their card according to their subscriptions. The subscriptions and recurring payments can be yearly, monthly, weekly or even daily. You can also set a due date for recurring payments, or allow them to continue paying indefinitely.
The benefits of automatic recurring billing are obvious: it saves merchants and customers time and optimizes the checkout experience. In addition, automated recurring payments can increase customer retention rates, which also makes it easier to predict cash flow.
How do recurring payments work?
An automatic recurring payment service provider handles all aspects of digital payments, including processing, securing and depositing the funds in the bank account. A merchant account, on the other hand, is a special type of bank account through which funds from credit and debit card purchases are deposited.
For online purchases, customers typically add a subscription and choose automatic recurring payment during the initial checkout process. After that, subsequent payments are processed automatically, without the merchants’ or customers’ action. Customers will typically receive digital notification when their payment has been processed.
What happens when a recurring payment is processed is the same as a digital credit card payment is processed: The payment processor contacts the merchant’s bank, which is known as the acquiring bank, and the customer’s credit card network, such as Visa or MasterCard. Businesses that use payment service providers don’t have to wait one to two days before their funds to become available. Instead, the payment service provider will front the funds from the purchase, then minus fees and deposit the actual funds into merchant account.
Tips on automatic recurring payments
experience and merchant payment efficiency, but it also faces some challenges. Here are some tips on automatic recurring payment:
- Automated recurring billing help reduce bill collection expenses.
Recurring billing can not only reliably bring income to merchants, but it also means that merchants no longer have to hire additional staff to track delinquent accounts. Even if the delinquent accounts are traced, the costs incurred in this process will reduce the revenue of the transaction.
- Look for a subscription service that accepts diversified methods of payment.
That means accepting all major credit cards and having relationships with major banks to handle automatic recurring payment service. The integrated diversified payment methods enable merchants to connect to multiple payment service providers with only one collection system, which can meet of customers’ diverse payment needs, reduce communication barriers and channel costs, and improve the operational efficiency of the business payment system.
- Remember churn rates
Churn rate is the annual percentage rate at which the customers stop subscription service. A company’s success means that this company’s annual growth rate of new customers must surpass the annual churn rate, which stands for customers terminating the relationship.
Churn rates vary greatly from industry to industry. They are very important for industries where subscriptions and automatic recurring payment account for most of the company’s revenue. The telecommunications industry is a good example of an industry for whom the rate of churn is important to the profit margin. It uses churn rates to determine how it competes with other companies in this highly competitive market.
Automatic recurring payment service provider: Oceanpayment
You want a payment processor that can help you understand your churn rate and how to manage it? Oceanpayment has long provided product and operational support payment security services for global merchants as a gateway, especially in Hong Kong and Singapore. As a third-party payment company, it collects payments on behalf of other companies on a recurring basis. For more details please contact us here: https://www.oceanpayment.com/contact-sales/