Payments are not only the source of earning revenue but they also provide the expenditure to run the business. So, it is very important for a SaaS subscription business to collect recurring payments timely. If there are any hiccups in collecting recurring payments, then it directly affects the performance of the business. Getting recurring payments in time is equivalent to success in the subscription-based business. In this article, you will find some most effective tips to receive your recurring payments in time.
Multiple Recurring Payments Methods
Today, subscription-based businesses cater to customers of all ages. And millennials prefer bank cards to pay their recurring charges. However, there is a huge number of young customers in the same market who prefer paying the recurring charges through digital wallets, etc. The tip to avoid this problem is to offer your customers to pay through multiple payment methods. You can offer them to pay through credit cards, digital wallets, or even cryptocurrency. It is highly effective to satisfy all customers.
Accurate Invoicing and Billing
One of the biggest bumps while collecting the recurring payments is the filing for the chargebacks that the customers do in case they are asked to pay for more than they have used services or products. And it all starts with a single mistake in the invoice generation. When an automated subscription management system charges the customer more than his subscription plan, he goes for filing the chargeback (in case his payment method is a credit card). Chargeback not only affects the process of collecting the recurring payment but also make you pay the customer back more than what is deducted from his account. You can avoid this issue by generating accurate invoicing. So, if you have not adopted any subscription management system, then you need to adopt a recurring payment platform ASAP.
Multiple Payment Gateways
Another tip to get your payments in time is to integrate multiple payment gateways with your subscription management system. Payment gateways make online transactions safe and secure. They encrypt the card information that the customer shares online so that the transactions can smoothly be processed. When a payment gateway is down the customer cannot pay his subscription fee. So, it is better to integrate more than once payment gateways so that the payment processing system keeps working even if one gateway is down.
Your system should be efficient enough to notify customers about their due recurring payments. Also, when it is about to automatically reduct the recurring charges from the customer’s account, it should generate the notification for the customer so that you may not give any reason to the customer to file for the chargeback that he was not notified before deduction of the recurring charges from his account. So, effectively communicate with the customers. And let them know when you are charging them for their subscription plan. This effective communication also strengthens customer relationships.
Dunning means to talk to the customers in an effective manner. Payment recovery is an important part of payment management. Also, it is part of every business. If you want to recover payments from your customers timely, then it is important that your subscription management system offers dunning management as well. Through dunning, you are provided ready to use email templates. You can contact the recurring customers and ask them nicely to pay for their subscription charges. so, opt for the recurring payment solution that offers dunning management as well.
If you are looking for a subscription management system, then SubscriptionFlow is the one that you need to onboard to collect the recurring charges in time. Here you can not only manage your payment processing but also the complete subscription-based business activities. The SubscriptinFlow experts also offer consultancy. You can contact them to discuss the issue of late recurring payments. However, onboarding a subscription management platform like SubscriptionFlow automatically reduces the chances of late payments.