Recurring Credit Card Processing

Time is money for business, and making prompt payments without delay is good for the soul of your enterprise. This is why recurring payments are increasingly popular with many companies. Recurring credit card payments allow businesses to process payments regularly from the same customer smoothly and seamlessly.

The increasing demand for subscription-based services with fixed payment plans combined with the urgent need to automate processes makes recurring payments look like the perfect solution for established businesses and startups. PaymentUSA takes the stress off your company’s shoulders, allowing you to provide optimum client services.

As it stands, a subscription-dependent vendor base grows by 30% to 50% yearly. Analysts believe this sector is still in its infancy, so now is the best time to think of the products your business offers, and which are prime for a recurring payment service.

In this piece, we look at what a recurring credit card payment is and the process involved to set one up using our simple procedure. There are also examples of the top scenarios where recurring credit card processing payments are most helpful.

What are Recurring Credit Card Payments?

Also referred to as recurring billing, subscription, or automatic payment, a recurring credit card payment settles all repeating bills, charging them to a credit card. These payments allow users to authorize a service product provider to deduct money from their account regularly on an agreed date. This system removes the stress for the customer of repeatedly entering payment information.

This subscription model requires sharing private financial credit card information with the payment processor and accepting continuous charges for future bills. That means that only trustworthy merchants must be partnered. Payments can be settled on a monthly, quarterly, or annual basis.

An automatic payment is designed to continue permanently, hence the need for a reliable recurrent credit card processing merchant with a track record of easy and safe payment services – like PaymentUSA. Customers have the ability to cancel the agreement at any time, and payments stop automatically if the card details expire. Our aim is to ensure our clients provide their customers with a secure yet highly convenient payment option.

Recurring card payments are divided into two types: variable and fixed payments. As the name suggests, variable payments can change from one payment to the next. This is usually dependent on the customer’s use of a product or service in a particular time frame. Fixed payments, on the other hand, are pre-determined. The same amount is deducted from the credit card per cycle.

To help you understand better how recurring credit card payments work, here is a simple breakdown of the system.

How Recurring Credit Card Billing Works

No matter the payment processor used, the steps involved are the same. Vendors or customers sign up for a subscription or recurring payments service, which consists of an invoice each time a payment is due. They can then choose the best time for the deductions. All payment information is then stored on a secure server so that the payments can be made automatically.

Everything is charged online. Customers must assent to releasing all credit card information and selecting a schedule. Depending on the payment processor, several payment platforms can be chosen. Credit cards are the most reliable of the platforms available to select from.

Once a transaction is completed successfully, automated receipts are instantly generated and sent to the customer.

One-Time Charge and Recurring Service Payments: The Difference

It is common to find customers who confuse one term for another. Others think both payment types are the same. So, let’s settle these misconceptions.

One-Time Charge

A one-time charge is a transaction done once. The customer pays a vendor for a product or service. It’s in the client’s best interest not to approve any more payments, or they will lose the trust of the customer. No payment information or data are expected to be kept in storage, unless the customer expressly chooses to use a “save card details” option for future transactions.

This type of transaction is mainly used when the service or product is a one-time affair and is not likely to be renewed soon. It’s not recommended to use a recurring service payment option here.

Recurring Payments on Credit Card

As we already explained, recurring credit card payments are made more than once. Once the subscriber chooses this option, it will continue for the agreed-upon period. This subscription-based transaction is an excellent choice if your company offers services on an iteration basis.

Understandably, many customers are skeptical of releasing their payment information for storage to certain companies. However, the benefits of selecting this choice are numerous for both customers and vendors.

Benefits of Offering Your Customers a Recurring Credit Card Billing Service

Now that the crucial difference between one-time and recurring credit card payments is clear, let’s check out the various advantages of accepting recurring credit card payments.

Addition of New Product to your Catalog

The benefits of using recurrent credit card payments don’t end with making your payment service faster and more convenient. With recurrent credit card billing, businesses can easily base ad campaigns on new products in their range.

One of the top situations where this is seen is with razor blades. Usually, it’s possible to get any type of razor you like from a store. Due to their availability, competition is low. Unless the value is somehow increased.

Many men know and are associated with the Dollar Shave Club. The brand introduced a subscription offer to make razor blades more valuable and give them an edge over competitors. Anyone interested can sign up to receive grooming products through the mail, either monthly or quarterly.

Before long, the Dollar Shave Club was valued at a little over 1 billion USD. A feat that would have been impossible to achieve without the aid of recurring credit card payments.

Protection from Fraud on eCommerce Sites

No matter the protection level most customers use, some still fall victim to fraudulent activities. Payment fraud is a serious issue within eCommerce, particularly with “card not present” (CNP) payment transactions. In 2020 alone, CNP fraud cost merchants and vendors a whopping sum of $33.54 billion. A common cause is chargeback fraud, where a request is made to the card provider to refund a payment based on fraudulent excuses.

Vendors who accept recurring credit card payments are safe from these dishonest acts. All recurring payment processors must comply with PCI requirements, providing highly secure transactions. This ensures that all stored card details are heavily guarded against unauthorized access.

Less Time and Effort when Using your Services

Every business understands that staying ahead of the curve involves treating well. This also includes ensuring a steady cash flow when payments are automated. It also encourages a better customer-brand relationship since you don’t have to worry about losing a good client when their bills are overdue.

With recurring credit card billing, no one needs to worry about chasing clients or sending invoices and reminders about late payments. Instead, you can direct your attention to other crucial parts of the business.

Why PaymentUSA should be Your Recurring Credit Card Processing Partner

At PaymentUSA, our strongest belief is our resolution to provide financial solutions that broaden the customer experience. This includes access to our simple, intuitive online interface and our unique and customizable billing process. 

With our tried and tested recurring credit card processing service, you can eliminate the stress of manual invoicing and data entry. This reduces the chance of processing errors and makes your brand more effective.

Here are some fundamental benefits that you will enjoy once you sign up as our partner:

With our automated billing system, you can say goodbye to stress and hello to a reliable cash flow. With our economical plans, it won’t take long to notice that using a recurring payment merchant account is better than sticking to paper-based invoicing.

There is always a solution for payments when you choose our recurring credit card billing system for your clients. With our customizable options, you can comfortably tailor your automated invoicing to your taste providing added value to both you and your customers.

With recurring credit card billing, no one needs to worry about chasing clients or sending invoices and reminders about late payments. Instead, you can direct your attention to other crucial parts of the business.

Top Businesses that will Benefit the Most with Recurring Credit Card Payments

There are several advantages to enjoy when you sign up for our service. If you do business in any of the following sectors, there is no reason not to reach out to our customer support and register for an account today.

Membership Service

If you run a service that requires membership registration from your customers, a recurring credit card billing service is for you. Outfits like co-working spaces, social clubs, and gyms can benefit immensely from our trusted system.

With our flexible payment plans, you can choose either weekly, bi-weekly, or monthly payments for your clients. Since there is an option to save credit card details on secured servers, members can easily add bills of other products to their tabs, which are then deducted at the agreed time.

Subscription Business

Businesses with a subscription model can also reap the benefits. Charging customers regularly is vital to grow the business. A recurring credit card payment system is best for you if you run a service-based business like a video streaming channel or delivery of curated products.

Recurrent payment offers an uninterrupted experience for your customers, ensuring they don’t have to waste time dealing with payments.

Financial Services

Firms that manage financial services like insurance, student loans, mortgages, and IRAs will also benefit from our tested and trusted recurring credit card billing system. No one wants to be bored with how much they owe. Offering customers a solution where they can easily make secure payments without fuss is essential for company growth.

This model ensures payment is made on time and business moves smoothly.

SaaS Companies

Software as a Service – or SaaS – businesses thrive with customers that choose to subscribe to their services for a long time. With our model, it is possible to offer targeted discounts for customers who choose to sign up for the service over a long time. This gives great value for them and creates steady cash flow for your company.

e-Learning Academies

All online educational programs and websites update their platform with content relevant to students. Ensuring that students register their details for recurring billing means they will get access to new information and updates without interruptions. Everything can be automated with instant invoicing at check-out.

Blog Services with Premium Content

Bloggers with a comprehensive reader base can easily offer and manage premium accounts with a recurring credit card payment system. With our tested and trusted model, members are always in the loop and don’t have to worry about payments.

Generally, businesses that require a general renewal over a specific time are eligible for recurring credit card payment services. Choosing PaymentUSA as your processor ensures smooth running and management of your system.

Making Changes to Recurring Credit Card Payments

Should a customer require a change from the original payment agreement, it is easy to notify them. However, that won’t be necessary if the client expressly gives permission for changes in payment schedules or dates in the future.

Understandably, some customers want to change their service from time to time. You can easily switch to charging customers based on their service usage by specifying a range of amounts. 

Should the customer increase the usage of the service outside the determined range, it is important to notify them at least 10 days before the next payment is deducted from their credit cards. Learn more about this from one of our active customer support agents.

Which Plan is Best for your Business: ACH Debit, Recurring Credit Card Payments, or Standing Orders?

While ACH Debit, recurring credit card payments, and standing orders are helpful for automated payments, each of them comes with various benefits depending on your business model. As expected, recurring credit card billing bases its payment on card networks, whereas ACH debit and standing orders are related to bank payments.

You should understand that the speed of payments varies between the three systems, with credit card recurring payments generally offering a quicker service.

Furthermore, customer protection is high, as with ACH Debit and Standing orders. All processors offering recurrent credit card payments are PCI-compliant, another form of increased security. In addition, if they incur extra charges, customers are notified 10 days before the different amount is charged to their accounts.

Is It Possible to Set Recurring Payments on a Credit Card?

Now that you know that this automated billing service depends on the card network, you’ll understand that credit card setup for recurring payments is possible. Every client signing up for your service must be informed that cards will be charged on a fixed date, ensuring they are not surprised when seeing new charges on accounts.

The transaction charges charged by PaymentUSA compared to other processors are fair. We also provide extra security for storing credit card information with our strongly encrypted website.

How to Set Up a Recurring Payment Platform Successfully

Anyone can easily set up a recurring credit card billing process using these simple steps.

1. Sign up using our quick setup platform

To get started, first sign up on our dedicated billing solution platform. Our customer-focused portal is available for your clients to manage their portfolios and make adjustments to their payment schedules.

2. Choose how to manage clients' information/authorization

Once your customers save their credit card details, it is easy for you to choose how to facilitate all payments, including one-time charges. This can be done when you notify your clients of your intention to transfer their private information to our encrypted platform.

3. Set the schedule of payments

Now that the information is stored securely, you can proceed to choose when to make the automated payments.

Now that the information is stored securely, you can proceed to choose when to make the automated payments.

Enjoy the Benefits of Recurring Credit Card Payments

Recurring credit card payments are steadily becoming the future of billing in the US. The system offers enormous benefits for both customers and vendors. With our reliable and economical plans, you can give your customers the convenience they want while maintaining a steady cash flow for your business.

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