In many businesses, mailing invoices is a common monthly activity that they will do. Although it is a bit monotonous, the process is basically rewarding since every bill sent eventually will brings in more money — and thus more profits to them.
If we look at it a bit further, this monthly procedural brings a lot of invisible costs, including:
Hours spent by employee to send and receive each invoice
Spending of money for materials such as paper, envelopes and stamps
Maintenance and repair services for printers and other equipment
Losing of invoices in the mail and must be re - sent
Time to be spent for waiting the checks to clear
Bear in mind regarding the arrears. Each and every late payment requires you to hunt down the customer using phone or email. Have you imagined how you could avoid all these cost by automating the invoicing process? You can, if you use recurring billing.
What Is Recurring Billing?
You will understand how the recurring billing works if you have ever paid for subscription service. It is actually a payment model that allows companies to invoice their customers based on a schedule that the company specifies such as once a month, once every quarter, etc. Recurring billing is the ability to automatically send invoices and receive payments on a predetermined schedule. A new invoice will appears in your mailbox or inbox (usually as a “formality”), and the money is directly deducted from your bank account or credit card.None of the party has to do anything manually to make this process work:
- The invoice is sent like clockwork on a set schedule.
- The money is deducted automatically from the user’s account.
What Are the Benefits of Recurring Billing?
- The main benefit of recurring billing solutions is cost or rather savings. By doing recurring billing:
- Less employee hours is needed to collect payments from customers every billing cycle.
- There are not many missing or late payments since the system is 100% automated and the money will keep coming in.
- By using online recurring billing, it can save on material costs which are good for your pocketbook and environment.
- Recurring billing also give another advantage by improving customer retention. In order to stop the future payments, the user must know the option out of recurring billing. For example, don’t you think that all the gym memberships will keep generating profits because of the inactivity of consumer? This will be the same as:
- Magazine subscription
- Cable packages
- Mobile telephone contracts
To get benefits from recurring billing, there is no need to running a subscription – based service because any business can take advantage from this powerful payment option. For example, in order to make your products is more affordable, you can set up an instalment plan when you sell a big – ticket items.
Making Recurring Billing Work for You
The benefits of online recurring billing are obvious for the merchant but it can also be benefits to user. However, not all customers are comfortable about setting up automatic deductions. Some of them have reasonable concerns regarding the security and transparency.
This is why we need payment environment adheres to PCI-compliant data standards that follows all the latest security best practices. By reducing fraud, it is needed to build trust thus making this payment work the best for you.To find out more about recurring billing at your business, contact MOLPay. We are very happy to assist you.