Last Updated on May 30, 2023 by Ryleigh Stangness
Could your business be collecting automatic payments?
If you asked business owners what their favorite task is there's a good chance no one is going to say, "collecting payments."
While collecting payments is necessary for a business, it can be awkward and time-consuming. One of Helcim's Cool Features of Commerce is Recurring Payments that automate your billing, make your life easier, and potentially even help make you more money.
Billing automation, or recurring billing, is all about creating a faster, more efficient, hands-off way to accept online payments. You decide how often and how much the customer should be charged. The system will automatically charge their credit card, email the customer an invoice and receipt, and notify you if a transaction is declined.
Recurring billing helps your customers by making it easier for them to do business with your company. If you're able to offer a better experience than your competitors, then there is a good chance people will choose to do business with you over others.
A hands-free payment experience
Recurring billing takes the payment process and makes it hands-off for you and your customers. Because the system is automatically charging the customers credit cards, updating payment information using dunning management and handling all the notifications that need to go to the client you can rest easy knowing that your business will receive the payments it is owed. A seamless billing process can increase your customer retention because you do not need to inconvenience your customers by reaching out each month to track down a payment. The automated system is also less likely to make an error compared to human processing, fewer errors build higher customer confidence in your brand.
Better client relationships
Because you don't have to chase down clients to process payments each month, you can build rapport with customers through interactions that are not purely focused on money. Recurring billing also speeds up payments. Traditional payments, such as checks, can slow down your cash flow, resulting in late payments, and damage customer relationships if customers are unsure when payment will clear their bank account. With recurring billing, there is a clear expectation on when payments will be collected and received by all parties involved.
Multiple payment options
Implementing a recurring billing system allows your customers to pay how they want. According to Creditcards.com, at least 40% of consumers prefer to use credit cards as their primary form of payment. A study from researchgate.net shows that consumers associate payments made with credit cards with the related benefits of the purchase more frequently then payments made with cash. You can use the positive psychological effect of credit card payments to your advantage to sell more with less effort and have more satisfied customers.
Flexible payment schedules
Having to pay a large annual fee for a service can be a deal-breaker for customers. By implementing recurring billing, you make it easier for customers to budget for the payment and remove the shock factor that can be associated with large lump sum payments. Allowing smaller, consistent payments makes large investments more accessible for customers, increasing the likelihood of them making a purchase.
With recurring payments, you get money faster with fewer problems
Recurring billing helps make your customers happier, gets you paid faster, and keeps your business running smoothly. Maintaining strong relationships with your clients, providing a convenient customer experience, and offering accessible payment options can help you position yourself above your competition.