For Some Businesses, Recurring Payments Are the Life Blood of the Business.
We have all had the conversation with a service provider or merchant. If you sign up for a monthly membership or agree to a monthly shipment, you can save money. these merchants are trying to guarantee income for their business for a specific time period. They figure if they give the customer a discount, the customer will sign the contract for at least three months, a year, two years, or longer.
However, the merchant must remember to automatically bill the customer’s credit card or checking account at the same time every month. Their clients expect the payment to get deducted from their payment source on the agreed upon date. If the payment comes out too late or too early, it can become an issue for both the merchant and the customer. Therefore, any merchant choosing to offer recurring payment options to their customers must have a reliable payment processing system in place to make the transaction as seamless as possible.
Should Your Business Use Recurring Payment Options?
Recurring payments are perfect for merchants who offer subscription based services. These services can be useful for online streaming services, gym memberships, personal shopper services, discount plans, insurance providers, prescription and pharmaceutical companies, and even merchants who sell items people buy monthly. Even accountants, lawyers, and doctors can benefit from subscription services for some of their professional services.
Many service-based businesses and some retailers have a market for recurring payments. However, they must have a way to make it easy for them and their customers to make it worth their time.
What Should a Merchant Look for When Choosing a Merchant Services Provider for Recurring Payments?
Most merchant services providers offer options for companies to run automatic payment processing for their subscription services. However, not all merchant services companies are the right fit for small business needs. The following criteria is necessary to ensure your merchant services provider is the right fit for your recurring payment needs:
- Your merchant services provider should be PCI compliant. PCI compliance is an important security measure that helps protect your customers from identity theft and other breaches of security measures. Most of the merchant services providers are PCI compliant. You can ask them to confirm this information.
- Your merchant services provider should have exceptional customer service. You should be able to call your provider at any time and receive help to get your systems back up and running. Dealing with automated telephone systems and recordings can be a large waste of time and cost you, the merchant, money. Therefore, makes sure you have the right to speak with a live person when you need to and when a problem comes up with your merchant services payment systems.
- Your merchant service fee structure should be 100% transparent. You should not see any hidden fees in your contract or monthly bill for your payment processing systems. If your fees are not transparent it makes it impossible for your to charge a reasonable amount for services without loosing money.
- Your merchant services system should be easy to set up. You and your merchant services provider should not have to be rocket scientists to set up your payment processing system or the recurring payments. The easier the setup, the more cost-effective it is for your business.
The Merchant Services Provider You Can Trust for Your Small Business
Tanker Consulting Services can help you ensure your business can accept recurring payments with ease without costing you a fortune. Call 609-922-0201 for a free consultation to review your needs. We can help you get into a payment processing system that fits your business needs.