Recurring Payment Processing: 7 Tips To Manage Them Efficiently

Recurring payments have brought a new trend of payment methodology in the market. They are an automated mechanism that enables a recurring charge on a customer's card without involving either the customer or the merchant. These are also known as subscription payments.

It is a perfect solution for making all kinds of subscription payments to get online services like Netflix, Amazon Prime, Spotify, DropBox, etc. There is no longer a need for you to go through the tedious process of providing your bank details every time you make a payment through this technology. A one-time consent will prevent you from doing all such mundane things. 

With the help of this automated facility, the recurring payments mode will automatically deduct the prescribed amount on a prearranged schedule until the expiry of the term. However, managing them efficiently can be quite challenging as it often gives rise to transaction-related disputes with customers that might cause problems in business proceedings. There are certain tips through which you can reduce these problems with recurring payments.

Recurring Payment Processing: 7 Tips To Manage Them Efficiently

Store Essential Information Securely

Whenever you set up a recurring payment mode in your business platform, you should keep in mind that you are dealing with various customers' sensitive information. So you need to store those details in a safe and secure manner and take active measures to prevent them from getting hacked. You can also take help from third-party security service providers such as Visa Account Updater (VAU) which will constantly update you about any changes in the Cardholder's information.

Encrypted Transactions

This is an essential thing to be kept in mind by e-commerce merchants for their businesses. Save your money somewhere else but never compromise in this aspect. It is best to always use an encrypted system for your websites. Since payments will be made frequently on the said website, you should make your payment gateway as secure as possible. If you tend to overlook it, there might be cases where you have to face chargebacks. 

Be Careful with the Cardholder's Details

Always make it a point to use the data collected from the customers for its intended purpose. You should use the details only to process recurring payments and not to take advantage of the personal information in any way, even if it is for the benefit of the customer. Misuse of the details can lead to serious legal troubles for your business or can harm your business reputation.

Maintaining the privacy of cardholder's details also plays an important role in making recurring payments safe and secure.

Maintain Transparency in Policies

You might face a couple of chargebacks now and then if you do not maintain a strong and transparent policy for your transaction process. It should clearly state the terms and conditions for any sort of cancellation fees that the customers have to pay if they refuse to accept any product. If this is not followed properly, some situations may give rise to disputes. 

Use Subscription Billing Software

To ensure the proper security of your customer's details and payment processes, you can make use of subscription billing software. They will not only provide you with encrypted software but also with accurate histories of payments, email receipts, and other advantages. You might be charged for their services but that would safeguard you from various fraudulent activities and disputes. 

Communication with Customers

The first and foremost thing for your business to run smoothly is to maintain a good relationship with your customers. Recurring payment transactions should always be properly labeled so that it reflects on the bank statements of the customers.

Never try to trick the customers into continuing the subscription services. Rather you should always send a notification a few days in advance before charging them and let them know about it. You also must inform your customers if there is a change in the billing amount or authorization of the payment method. This would help develop the trust between you and your customers and increase their reliance on you.

Feedbacks are Equally Important

Never neglect your customer's feedback, as this is the one thing that would help you to identify the problems related to payment transactions. Therefore, always interact with them throughout their subscription period through emails, social media, or other survey modes and resolve the complaints. This would improve your business proceedings and avoid chargeback-related issues.

Automated recurring payment, therefore, ensures that an individual does not have to undergo the tedious process of refilling the same details over and over again. A lot of time and exhaustive paperwork can be saved through this process. However, just having this option is not enough. Only with the help of the tips given above, you will be able to manage this mode of payment effectively. Without proper payment management planning, it will be difficult to gain efficiency in your business with frequent transaction disputes with your customers.