Market structures are constantly changing as they respond to customer demands. A fundamental and relatively modern shift was the widespread adoption of the recurring payment model. Under this strategy, financial transfers are spread over a defined time frame, unlike customers who are required to make full payments at the point of purchase.

What are recurring payments?

Recurring payments are made when consumers allow a retailer to bill them periodically for products or services according to a predetermined schedule. This plan can be annual, monthly, weekly or daily. Recurring electronic payments are repeated and save a lot of time for the business.

When you make regular payments for goods or services that we send to you on a regular basis, these are recurring payments. This can be for any time frame depending on the trading model. An initial sale or card authorization must be made before recurring payments can be made.

Benefits of recurring payments

Increase cash flow

Late payments will have a huge impact on cash flow. As a result, many businesses charge consumers a late fee for not billing on schedule. This payment can lead to a negative customer experience due to the accumulation of additional costs for their late payment.

The introduction of a variable billing model guarantees consistent cash flow and maintains a productive relationship with the customer. “When a company can engage its clients on a monthly installment schedule, it also works to guarantee that the organization gets paid based on advances on any accounts.

Reduce leg work

When using auto-recurring payments, just create the original payment solution providersplan and then process any adjustments to the payment type or amount. It's as straightforward as enjoying watching transactions being paid into your business bank account in pre-defined consumer payment data.

Reduce dips

With the inclusion of Account Updater software, the automated recurring billing system will significantly reduce payment slippage. Registered cards may expire or be replaced due to the provision of a new card due to the EMV process or a missing or stolen card.

Card Updater systems will reduce losses related to outdated or exchanged cards. This program maintains expiration and exchanges card numbers with cards on file.