The list of businesses that could benefit from recurring payments is longer than you think.
Want a new way to boost your monthly recurring revenue? Educate your merchants on recurring payments! North American Bancard partners are expanding accounts by providing this service that practically sells itself with the benefits it offers.
Here’s what your customers need to know:
Recurring payments are flexible.
They enable automatic payments for services or merchandise that a business provides regularly or on a subscription basis. Depending on the agreement with the consumer, recurring payments can be set up monthly, weekly, or daily, when their customers’ accounts meet certain thresholds, or any other agreed-upon period.
Recurring payments benefit businesses in a vast array of verticals.
Some of your accounts may not think they can use recurring payments, assuming the service is reserved for insurance premiums, fitness center memberships, and movie streaming subscriptions. The fact is, almost any business that provides goods or services regularly would do well to set up recurring payments, including the following:
● Landscapers or snow removal services.
● Cleaning services.
● Retailers that offer “monthly boxes” or subscriptions for consumable items.
● Entertainment venues.
● Toll or parking facilities.
● Veterinarians or kennels.
● Any organization that accepts contributions like nonprofits and religious organizations.
● Healthcare providers.
● B2B companies.
Recurring payments save time and money.
If a business is currently invoicing for regular services or purchases, their back office will love a transition to recurring payments. Doing so eliminates the time, labor, and money associated with preparing invoices, sending them, and chasing down payments.
Furthermore, you can add Account Updater, which automatically updates your customers’ card-on-file information when they’re issued new cards with new expiration dates. Having updated information on hand saves time, eliminates having to contact the customer for information, and helps merchants avoid paying extra payment processing fees because the first transaction was declined.
Recurring payments can bolster payments security.
Recurring payments are more secure than taking credit card information over the phone or on an invoice each month. That’s because when payment data is tokenized for recurring payments, no one sees card numbers or other sensitive information. The fewer people with access to human-readable payment data, the lower the chances are that it will fall into the hands of cybercriminals.
Therefore, getting merchants set up with recurring payments may also help them simplify PCI compliance requirements, since they aren’t dealing with credit card data throughout their organization.
Consumers want the convenience of recurring payments.
Customers will always choose options that save time and minimize hassle. Setting up recurring payments for purchases or services they regularly use is convenient. It also gives them options – like paying by credit cards, debit cards, or ACH. Besides, during the pandemic, people want to keep their distance. Recurring payments lets consumers manage purchases and subscriptions safely, with fewer in-person interactions.
Recurring payments help cash flow.
Recurring payments set for specific days of the month help to even out cash flow for your merchants. That way they don’t have to send invoices and hope for the best – instead, the money will transfer to their accounts on time based on an agreed-upon schedule.
One more thing your merchants need to know.
The idea of changing over from invoicing to accepting one-time payments may seem daunting to your clients. Make sure they understand how easy setting up recurring payments can be. Once they do, they’ll have an even better feeling about your brand for not only providing them this convenient payment option but educating them on how they and their customers can take advantage of it.
Contact us for more resources and the support you need to provide this service to your customers … and grow your portfolio!