Accepting recurring payments is a great way to reduce late payments, improve customer relationships and save time as a business owner. To experience these benefits, though, you need to make sure your approach to payment processing is working properly.
Not sure why it’s so hard to make recurring payments work? Here are 6 of the most common challenges and how you can fix each one.
1. Manual Invoicing
It’s hard to maintain a streamlined process for accepting recurring payments if you’re still generating invoices manually.
Manual invoice generation takes up a ton of time and increases the risk of human error. This is especially true if you’re using a complex invoice template.
When it’s hard for your customers to see what you’re charging them and why you’re charging it, they may become overwhelmed or confused — neither of which is ideal if you want them to pay their bills on time or continue making payments regularly.
Automating your invoicing process will save you a lot of work and prevent you from constantly having to track down clients for unpaid bills. If invoices are sent regularly — and formatted using a clear, easy-to-read template — you’ll have greater success getting paid on time and keeping your customers happy.
2. Online Security Issues
If you don’t have a trustworthy online security protocol in place, your customers might be hesitant about trusting you with their credit card or bank account information. This could also make them resistant to opting into recurring payments.
PCI compliance is a must for any business that will be processing recurring credit card payments and direct debits. It provides a high level of surveillance and regular system updates. It also reassures customers that you’re abiding by the latest online security guidelines.
When searching for a payment gateway to process recurring payments, make sure it’s PCI compliant. Information about the gateway’s security features should be readily available online to help you decide if it’s a good fit for you and your customers’ needs.
PCI compliance is a must for any business that will be processing recurring credit card payments and direct debits.
3. Not Having Enough Payment Options
As a business owner, you know that it’s not easy to make all of your customers happy. Everyone has different preferences, especially when it comes to the way they pay for products or services.
If you’ve only been catering to one set of customer preferences, you might be alienating a large portion of your target audience.
To avoid this issue, make sure you’re accepting multiple payment types. This might mean allowing customers to pay with a credit or debit card, as well as with direct bank debits.
The more options you allow, the more likely you are to keep your customers happy. This also increases the likelihood that they will opt-in to recurring payments and stay loyal to your business long-term.
4. Lack of Scalability
When you were first getting your business off the ground, it may have been easy for you to manage recurring payments and keep track of your finances. Have things gotten hard now that your business is starting to grow?
As your business scales, so should your approach to processing payments. After all, a larger customer base comes with new challenges, including more potential security risks and greater variability when it comes to payment methods.
Upgrading to a third-party payment gateway or a more robust payment processing solution may be necessary to keep up with your business’s growth and continue accepting recurring payments.
5. Failed Payments
It’s hard to accept recurring payments if your customers’ selected payment methods are frequently failing. Perhaps they’re not cancelling their subscriptions altogether, but their payments are failing because of issues like insufficient funds or expired credit cards.
This issue is also known as involuntary churn, and you can prevent it from happening (or at least reduce its frequency) by using a payment gateway that automatically tries again after a failed payment attempt occurs.
You can also implement other processes, such as sending automated reminders that the customer’s account is about to be charged or giving them the option to add a second payment method.
6. Not Using Third-Party Integrations
It’s easier to accept recurring payments and keep your business running smoothly when you use a system that features a variety of third-party integrations.
Not only does this type of system help you avoid late payments, missed payments, and potential security risks, but it also helps other members of your team do their jobs better.
For example, the right payment gateway can provide your sales team with subscriber information so they can deliver discount codes and coupons. It can also provide your customer support team with order numbers and other information they need to answer questions or address complaints.
When you pick the right payment gateway, you can eliminate a lot of common challenges associated with accepted recurring payments.
Fix These Problems with the Right Payment Gateway
When you pick the right payment gateway, you can eliminate a lot of common challenges associated with accepted recurring payments — including the 6 listed above.
If you’re not happy with your current payment gateway, or if you aren’t already using one, here are some key characteristics to look for when you begin your search:
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Low transaction fees: Compare transaction fees across multiple platforms to find the lowest ones possible.
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High-level security: Look for PCI DSS Tier 1 security to give yourself, your team, and your customers peace of mind.
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Easy integration: The payment gateway should be easy to set up and connect with other tools your team is already using.
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Robust customer service: There should be multiple ways to connect with the customer service team and ask questions, address problems, etc.
Consider whether or not the payment gateway is designed with your particular business type and industry in mind, too. Whether you work in real estate or child care, you need a payment gateway that can help you address industry-specific issues with ease.
Start Accepting Recurring Payments with PayChoice
If you’re looking for a payment gateway that checks all the boxes listed above and makes it easy for your business to start accepting recurring payments, PayChoice has got you covered.
This Australian-owned payment gateway allows you to accept credit cards, direct debits, BPAY, and more. Contact us today for a free quote and see how much you could save!
