If you run a business where customers make multiple, regular purchases over time, one of the best practices to rely on is recurring credit card billing. Recurring credit card billing allows you to save the credit card information of a customer in a safe, secure manner—then bill that credit card automatically, without the customer having to authorize the transaction. Recurring credit card billing has multiple benefits for both you and the customer, including ensuring that you get paid (and upping convenience for the customer). If you want to use recurring credit card billing at your company, here are some helpful tips for getting started.
Find a flexible recurring billing solution
You’ll need a technological solution to help you implement recurring credit card billing. Find a flexible billing solution that allows you to bill customers in a way that feels comfortable for both you and your customers. You may have to tweak your process over time, as customers get used to paying you automatically, so having a flexible solution will make the process simpler for everyone involved.
Introduce the option to your customers
Introduce the idea of recurring billing to your customers as an option. While some customers may fear the process or feel hesitant to join, educating people about the process and its benefits will encourage people to join in. You can tell them about perks like saving time and energy, ensuring information is kept secure, and getting rid of the hassle of the payment process.
Collect payment information
Once you decide to do recurring billing, collect the payment information of customers. You’ll need their names, credit card numbers, expiration dates, and address. Store this information securely in a dedicated billing solution.
Get your customers to sign a form authorizing you to charge their credit card automatically each month. Authorization shows that they give you permission and can help you avoid any legal trouble.
Set timing, frequency and amount
Within your payment solution, set the timing, frequency and amount of the recurring bill. Then, you can sit back and relax (or, devote your energy to other important business tasks) while the payment process is taken care of for you automatically.