True Automation in Recurring Billing Models

Leveraging Auto-Updater Services

Written by Rebekah Moss 06 Nov 2019 - 3 minutes reading time

Optimising checkout conversions happen not only with the UX experience but with frictionless customer authentication methods, exemptions at the payment stage; and where possible, one-click payments. With more regulations being rolled out over the next 18-months in the payments space, even automating the payment process online is adding to the growing popularity of subscription models.

This is achieved with recurring payments and the processes by which they occur. However, non-completes can still occur at the checkout stage with recurring payments and subscription-based service models.

In an age where subscriptions are favoured over ‘build’ options, encountering do not honour codes for any reason when making a transaction - whether it be insufficient funds, card verification issues or a failure to update details - reveals a flaw in recurring payment models that is easily resolved with the power of Total Processing’s gateway.

With a power afforded to us by Visa and Mastercard’s auto-updater, recurring payments are no longer interrupted by invalid card numbers, cancellations or other interruptions, when processed via our gateway. Instead, the invalid card information is replaced with up-to-date information to prevent declines and frictions in service.

This transactional data is kept secure by card tokenization (a process in which card data is substituted with token representatives in the first transaction), the very same function used to facilitate ‘remember me’ and one-click payment functionality at the customer-end checkout. As a combination, tokenisation and card-updater services play a part in a very tentative partnership wherein the customers agree to let the merchant store their sensitive data in order to enable the secure transfer of money at set intervals; whether it be for a service, or act as trustee in retaining their details for future use.

What are Recurring Payments?

But first and foremost, recurring payments are classed as any transaction wherein the customer consents to store their card details or uses previously-stored details to make a transaction. Secondly, a recurring payment can be classed as part of a subscription service or a set of parameters that establish a contract between a customer and a merchant.

Subscription models refer to the service offered to customers. A recurring transaction forms part of the tool used to offer this service, but whereas they are strictly automated, a subscription model typically involves additional actions atop of the transaction parameters.

From a merchant perspective, a recurring payment is any payment that allows the merchant to schedule a transaction to be automated and pulled from the customer’s account within a certain time parameter.

Scheduler

The Benefits of Recurring Payments

The benefits of recurring payments are ensured customer retention and the initiation of a delicate conversation throughout a transaction of service and product. In implementing the combination of ‘remember me’ functions and an auto-updater service, the merchant has the opportunity to optimize this conversation to the fullest extent and maximise retention into loyal customers within a competitive market. On a technical basis, these methods eliminate any need for manual or repeat data entry processes that interrupt and compromise the very premise of recurring payments.

Taking Recurring Payments with Total Processing is Simple

Process

Merchants can establish a cashflow strategy based on time and geographic performance throughout the month and manage payments with easy scheduling through Total Control. With no downtime and our auto-updater service, merchants can further prevent unintentional subscription cancellations and do not honors occurring due to insufficient funds; taking recurring payments via credit and debit cards with additional bespoke fraud parameters that keep you in charge.

Sources

https://www.chargebee.com/resources/glossaries/subscription-billing/subscription-management/ https://www.totalprocessing.com/recurring-payments https://www.getcheddar.com/blog/subscription-billing/ https://neilpatel.com/blog/before-starting-recurring-billing

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