What is recurring billing?
Recurring billing mostly occurs when a vendor automatically charges a customer for goods or services on a prearranged schedule. The customer needs to provide certain information and approve permission when the recurring billing starts. During the agreement, the vendor will automatically make recurring charges to the customer’s account with no further permissions needed.
Are recurring payments effective for your business?
Recurring payments are here to stay. Traditionally membership and subscription-based businesses like gyms, insurances and utilities applied the recurring payments business model. However any goods or service that a customer subscribes to, is a candidate for recurring billing. More recently, service-based businesses such as accountants and marketing agencies started adopting retention based models. Even for physical products, a recurring payment solution could be valuable. Wholesalers and distributors, who run accounts with their clients, also started implementing automated recurring billing.
A few examples of industries that apply recurring payment solutions:
- A subscription box where customers receive a box full of goodies regularly
- A maintenance plan, think of heating and air-conditioned specialists
- Online learning courses who provide access to digital assets
- Software as a service provider
- Streaming services like Netflix and Spotify
- Membership clubs, such as gyms
- Utility companies who charge you for service each month
Benefits of a recurring payment solution
Recurring payment models are a tactic to help save money, time, retain more customers and turn your inconsistent cash flow into predictable revenue.
The most important business benefits of a recurring billing model include:
- Generate a predictable cash flow
- Time saving
- Improve customer relationships
Predictable cash flow
A recurring relationship with your customers is a fantastic way to predict your business’s cash flow. Calculating your income is incredibly easy since you know exactly what you’re going to receive during a specific timeframe. Predictable and secure cash flow is essential for long-term financial planning.
Recurring billing eliminates administrative costs and time associated with tracking invoices and chasing payments.
Improve customer relationships
Customers don’t have to approve payments or remember to make payments, which contributes to a stress-free payment process for customers. Customers are more likely to stay on board thanks to the convenience of automation. This is good news for your customer retention metrics!
Why you should consider SecurePay’s recurring payment solution
SecurePay is a product of Australia Post and is a trusted recurring payment provider in Australia. SecurePay offers recurring payment services for small businesses to enterprise-scale businesses. A few reasons to consider SecurePay as a recurring payment provider:
- Top grade digital security: PCI compliant and award-winning security/anti-fraud solution
- Local Australian support: Our Melbourne based support team are here to help 8am to 8pm Mon-Fri
- Simple set-up and integration: We will work with any website type and provide detailed documentation
- Multiple payment methods: SecurePay accepts a wide range of payment methods
If you’re looking for a convenient way to start accepting recurring payments, SecurePay can help. To find out more, simply get in touch with one of our friendly payment experts and we can help you get set up with recurring payments today.