Increase on-time payments from your customers, simplify your bookkeeping and reduce collection headaches. Ideal payment method for short-term housing, condominiums, storage sites or child care centers.
This program authorizes you to bill against the Cardholder’s specific credit card account at pre-determined periods.
- Weekly Recurring Payment Program
- Monthly Recurring Payment Program
- Etc
The bill amounts can be the same or can fluctuate. Credit, debit, or charge cards may be used.
Customers using a Recurring Billing Program method are the best customers. They like the convenience, stress relief and financial benefits. You’ll like the consistent, on-time payments!
Research shows that 55% of consumers would switch Providers if the competition offered Credit Card Recurring Payments, all else being equal.
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Increases on-time payments and profitability;
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Reduces bookkeeping time, errors and expenses;
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Improves tracking of payments received;
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Eliminates or reduces expenses of reminder notices; and
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Improves relationships between staff and the bill payers.
The Cardholder authorizes you, the Provider, [in a signed agreement] to bill against a specific account [MC or V or debit card] at pre-determined periods (weekly, monthly, etc). The bill amounts can be the same or can fluctuate. Credit, debit, or charge cards may be used.
Use your existing accounting software with our processing software to create a database of recurring card information. Send this data through our processing software at the scheduled times. Each “batch” of payments is deposited into your business account.
What equipment is needed for Recurring Billing Program & how much does it cost?
There are two choices for equipment.
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Installation of the processing software in an existing computer . The computer becomes the terminal and uses the modem to connect for the card authorization. COST is $39.95/mo. x 36 mos. leased, or $499.00 retail purchase.
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Installation of a Virtual Terminal on a computer with an ISP [Internet Service Provider]. The ISP needs to be one other than aol.com. The transactions are done on a secured internet payment link. COST is $399.00 set up fee and a $15.00 monthly network access fee.
Can this system be used for a 1 time payment as well?
Yes! The computer accepts the swiped card and processes the transaction the same as a stand-alone terminal on a counter top. It requires a “card reader” – the gizmo that accepts the card swipe. COST range is $29.95/mo. to $49.95/mo. X 48 mos. leased. Retail purchase range is $399.00 to $800.00.
How much does it cost to process payments through recurring billing services?
The regular merchant processing rates apply.
The discount range 2.25 to 2.75 + 30 ¢ per transaction.
EXAMPLE:
$385 monthly payment x 200 participants = $77,000 recurring payment monthly.
$385 x 0.0225 +30 ¢ [discount rate+transaction fee] = $8.97 x 200 = $1794 monthly discount fee.
The processing fees may be taken as a business expense at the end of the tax year.
What is the procedure to process the payment with the recurring billing service?
The merchant selects one of 2 payment alternatives to process the transactions and obtain the Authorization codes and create the list of individuals participating in the Recurring Payment program.
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Use the merchant’s existing bookkeeping/accounting software [such as Quicken, QuickBooks, Rent-right, Rent Pro, etc.] to export the list of cards to be billed into the electronic payment software to create a billing transaction. The software ships the list of payees and their card information for authorization.
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Use the processing software , the list of individuals participating in Recurring Payment Program is created. The processing software then sends the list of payees, the transaction amount and their card information for authorization. The merchant enters the payment as received into their bookkeeping / accounting software after receiving the Authorization number.
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Use the VIRTUAL TERMINAL on the Internet, the merchant builds a “profile” for each participant in Recurring Payment program [i.e., card number, amount to bill against the Cardholder’s specific credit card account, frequency / dates of future payments, end date of payment program, etc.]. VIRTUAL TERMINAL obtains the authorization and captures this information on the profile.
VIRTUAL TERMINAL maintains the history of these payments, batch reports, declined cards, statements, and the “profile” administration list for easy access and management.
One time payments may also be made with all 3 of these options.
Authorization codes are sent to the merchant. Deposits are made to the merchant’s bank account in the normal 24 to 48 hour time frame.
What happens when a card is declined authorization?
The merchant may wait a period of time, such as 24 hours, and select the declined card for re-submission for authorization. Should card receive a decline again, the merchant can request another form of electronic payment a different bankcard or debit card] or proceed with their normal collection / late payment procedure. |
