For effective subscription payment processing, you need a reliable recurring payment system. From customer retention and compliance to peace of mind around cash flow, your system should instil confidence and support business growth. We outline the key considerations for merchants to help determine the best recurring payment system for your business.
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What benefits should you expect from an effective recurring payment system?
An effective recurring payment system should expect the following benefits:
- Predictable cash flow
- Convenient and efficient payment processing
- Time and cost savings from automated transactions
- Increased business performance due to easier customer conversions
- Greater customer satisfaction and retention
- Enhanced compliance capabilities
Managing subscription payment processing is much more complex than payment processing for other business models. There are additional challenges, such as a wider range of regulatory requirements, retaining customers to maintain revenue and drive growth, plus managing heightened risks. And the best recurring payment system can support you with these challenges. Read our article on the key subscription payment process challenges: 4 Key Subscription-Based Payment Model Challenges for Merchants.
Key considerations when choosing the best recurring payment system for your business
Below, we’ve highlighted three key considerations for merchants offering subscription services and products and the determining factors for each to judge the best recurring payment system for your business.
1. Reducing risks and revenue leakage
When you’re forecasting growth and relying on ongoing revenue from your current and future customer base, you need to ensure subscription payment processing is efficient and reliable. Issues with recurring payments lead to revenue leakage and a range of subsequent risks and knock-on effects.
Common issues you can run into include:
- Increased churn rates
- Declined authorisations
- Lost or expired payment cards, preventing successful transactions
- High chargebacks-to-sales ratio
So, what can the best recurring payment systems and providers do to help you reduce and manage these risks? Top vendors can:
- Provide customer account updates
- Offer automation technology to retry failed transactions and rebill customers
- Provide tokenization capabilities
- Monitor, mitigate and manage chargebacks
- Predict and detect patterns to identify where issues are occurring and how to fix them
- Support with revenue projection and help businesses to better manage growth
2. How the best recurring payment system can help you drive business growth
As mentioned, finding the best recurring payment system for your business can power your future growth. Cutting-edge payments solutions can help you meet your growth ambitions through:
- Chargeback reduction tools that can increase business performance and reduce fees
- Cascading capabilities or automated payment rebilling to help you increase revenue
- Advanced payment data reporting and analytics to enable merchants to monitor and analyse their transactions to make informed business decisions
- Enabling businesses to get a better understanding of their customer base, loyal customers and missed opportunities
3. Ongoing support, expertise and risk management
The best recurring payment system is only fully effective with the support and expertise of an experienced payment service provider (PSP). A dedicated, consultative partner can provide ongoing technical support, offer industry insights and benchmark data and leverage their experience and expertise to enhance your business intelligence.
PSPs can help merchants manage and mitigate risks and apply the right solutions to meet your specific needs and requirements.Learn more about how a payment service and gateway provider can help you to overcome your recurring payment challenges: Subscription Model Challenges That a Payment Gateway Can Help You Overcome.
Summary
Subscription payments and recurring payment processing do pose challenges to merchants and there are nuances to be aware of, but with an effective recurring payment system and supportive solutions provider, these can be easily managed to give you peace of mind and empower your growth.
By outlining the key considerations for finding the best recurring payment system, we hope you have a better understanding of what to expect from your solution, the features and functionality you need to operate efficient processing and how to manage risk, reduce revenue leakage and boost customer retention.
How Fibonatix helps merchants effectively manage recurring payments
Fibonatix is a leading payment service provider and a global payments expert dedicated to helping businesses grow and thrive and matching solutions to unique merchant needs. We combine a wealth of experience working with businesses with a subscription model and cutting-edge recurring billing solutions.
Our recurring payment system and payment processing solutions for merchants with a subscription model include:
- Seamless activation
- Automation
- An all-in-one transaction dashboard for easy managing, monitoring and reporting
- PCI-DSS compliance tools and accreditations
- Payment data tokenization capabilities
- Future transaction management
Businesses can also benefit from Fibonatix’s transparent pricing structure. Learn more about our subscription payment processing services and range of bespoke payment gateway solutions.