Merchants review new and innovative opportunities for collecting debts and payments. With changes in information systems, they have the option to choose recurring billing for their accounts. The new service eliminates the worry and additional fees for processing payments.
Recurring Billing : The FAQs
What is Recurring Billing?
Recurring billing is a process in which a consumer has agreed to allow their creditor to acquire their payment via their bank account directly. These options eliminate the need to generate a paper copy of the billing invoice and mail it to the customer. It saves the creditor or merchant time and eliminates extra overhead costs required to process the paper invoices.
What are the Major Benefits?
The benefits for the merchant equate to a reduction of unnecessary waste. They don’t need additional staff to process invoices and mail them to their customers. All documentation for the account is generated automatically through their information system. They won’t waste time reviewing accounts to determine what consumers are current or delinquent. They acquire an automated message if the payment isn’t received by its designated due date.
For consumers, the major benefits equate to saving time submitting payments to their creditors. The payment is processed on the date determined by their creditor. It is deducted from their checking account automatically based on this schedule. They won’t have to worry about their payments becoming delinquent as long as they have the funds in their account.
How is Recurring Billing Setup?
The consumer sets up a user account via the merchant or creditor’s website. Next, they select paperless billing to prevent the system from generating paper copies of their invoices. All invoices are sent to the email address connected to their account. Next, they select the option for automatic payments. Once they select this option, all payments are deducted from the account connected to their user account on the due date. If they need to change their billing method at any time, they sign into the account and update the information.
How Do Automatic Reminders Work?
The consumer’s user account generates a reminder each month prior to the due date for the account. The system sends the message to the email address connected to their user account notifying them of the exact balance and due date. If they need to make changes, they have this two to three day grace period before the payment is deducted. They have the option to allow the payment to go through on the date identified or to log into their account and pay it immediately.
For the merchant or creditor, the system generates a notification that the consumer has been contacted. It determines if the consumer made any attempts to contact them regarding the payment. This includes rescheduling or notifying the creditor or merchant of an inability to pay. They also receive a notification once the payment has been made.
What Happens If the Customer’s Payment Method Fails?
If the consumer’s payment method fails, both parties are notified. The merchant contacts the consumer via email to resolve this failure. If the failure is due to the current payment method, the system notifies them of the error.
Merchants utilize recurring billing to take the guesswork out of collecting payments. The service is beneficial for the merchant as well as the consumer. It provides each party with the option to submit the payment or collect on the exact due date without issue.