How can TraQPayments assist Merchants with the Setup of Recurring Payment Systems?
Recurring payments are charges made by a merchant to a customer‘s credit card or bank account on a regular basis. These are frequently set up on a weekly, monthly, or annual basis, and are a convenient and efficient way for businesses to collect payments based on agreed schedules. Recurring payment processing not only saves time but also encourages customer retention and results in a more enjoyable purchasing experience for the customer.
However, when it comes to completing these types of payments, payment service providers have a variety of methodologies and pricing structures to choose from. Let’s take a closer look at what recurrent payments are, what they are used for, and how TraQPayments can assist organizations with the setup of their recurring payment infrastructure.
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What is a Recurring Payment?
A recurring payment is a kind of bill payment in which a company charges a customer for certain services on a predetermined schedule. To process recurring payments, the company must first obtain permission from the customer to charge a credit card on a regular basis. The company can then continue to collect scheduled payments until the customer opts out of the recurring billing arrangement.
Recurring Payments in India
According to Reserve Bank of India (RBI) guidelines, customers must carry additional factor authentication (AFA) on all recurring payments made with their debit cards, credit cards, UPI, and prepaid payments instruments (PPIs).
Customers can use any UPI application to allow recurrent e-mandates for recurring payments such as mobile bills, power bills, EMI payments, insurance, mutual funds, and loan payments, as well as paying for transit/metro payments up to INR 5,000. Customers must complete each mandate with their UPI PIN if the sum exceeds INR 5,000.
Businesses profit from recurring payments because they provide a predictable stream of cash. Accepting recurring payments has a number of advantages. Here are a few of them:
Improve your Cash Flow
Accepting recurring payments ensures that your business will have a consistent cash flow into your bank account each month, and with a predictable cash flow, you’ll be better prepared to manage your business expenses as well as any unexpected costs.
Receive Payment Quicker
Clients can set up a payment schedule and then let the billing software take care of the rest, eliminating the requirement for clients to pay according to the vendor’s schedules. Because there is no possibility of payments being forgotten or paid late, the payment procedure is expedited.
No need to Track Payments
Recurring payments also mean businesses spend less time tracking payments from clients, which means they have more time to focus on their business rather than spending time on administrative accounting work.
Billing Efforts are Minimized
Businesses don’t have to spend time each month writing invoices and processing customer payments. Instead, they only need to set up the initial payment schedule and then leave the rest to your payment software. You only need to get involved if an adjustment is needed in the charge amount or payment method.
Enhances long-term Customer Retention
Allowing customers to set up recurring payments can assist businesses in improving long-term customer retention by saving them time and energy during the payment process. It’s also more likely that your consumer will view your service as a long-term investment, adding you to their regular budgets.
Secure Payment Processing
Allowing customers to set up regular payment schedules gives them additional peace of mind because this offers a more secure method of payment. Online payment services encrypt your clients’ data for a more secure transaction, and your clients can decrease the quantity of sensitive banking information in circulation by not making payments via mail.
When Should Recurring Payments Be Used?
Recurring payments are ideal for businesses with clients who pay a set or similar amount on a monthly basis. Offering clients, the option of recurring payments makes sense in the following business scenarios:
TraQPayments as a Recurring Payments Service Solution : Benefits of using TraQPayments
How can TraQPayments assist with Merchant Payment Schedules?
Merchants can schedule recurring payments via TraQPayments, which is an online payment system. The merchant must enter the customer’s information and designate a date on which the customer will commence payment. The platform will automatically keep track of the scheduled payments and will send out a notification to the customer on corresponding or pre-assigned dates
There are a number of methods that a business can use to collect recurring payments with our robust and well-equipped software. These include:
Customers do not have to be physically or digitally present in order for recurring payments to be processed, which makes them one of the most convenient payment options. Instead, customers agree to share their payment information (usually a debit or credit card) with a business’s payment processor and to allow their card to be charged on a schedule that the business establishes with them.
Setting up recurring payments with TraQPayments is a simple and uncomplicated process. We will assist you through the process of setting up your recurring payments systems for you.
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