Direct Debit Bank Transfers with CyberSource for Recurring Payments

Avoid Payment Lapses By Allowing Customers to Debit Their Bank Account Directly

How to use CyberSource's payment management tools to keep the revenue flowing for your business.

CyberSource logoManaging the finances of a large business presents some difficult and unique challenges. Customers today expect variety in their options, and that includes everything from products to payment choices with their eCommerce. These same customers often value products and services that can be ordered online and delivered directly to their doors without ever having to leave their own homes. With the current focus on subscription services, recurring payments have become the norm for most businesses; however, managing those repeated payments can become a hassle.

Defining Recurring Payments

Recurring payments definitionRecurring payments occur when customers are offered a subscription-based product or service or one that requires billing on a regular schedule. For example, some customers may begin a service, paying on the third Friday of each month. These clients often elect to have their money transferred via direct debit or bank transfer so that they do not even have to remember to send a payment.

Businesses with these automatic recurring payments are often praised by customers for their simplicity and convenience, leading many businesses, like Dollar Shave Club and Honest Company, to triple their revenue from the previous year. It has never been as popular to offer such hassle-free shopping to customers than it is right now.

In addition to these regular-paying members of subscription services, many businesses offer free trials, limited-time promotional deals and even customizable payment options. By altering the regular payment schedule with discounts for some members or by offering subscription members the option to choose which day of the week or month they pay for the service, the recurring payment process becomes increasingly more complicated.

The Benefit of Using CyberSource

Direct Debit with CyberSource benefitsHandling an influx of subscription-based products or services can wreak havoc on the financial management of an unprepared business. However, they also provide a continual source of income, so many businesses are jumping into this eCommerce market.

Successful subscription-based or payment-recurrent eCommerce depends on a well-structured system that can manage the constant incoming charges. Managing the complexity of this business venture would require more personnel, time and money than most businesses have to devote to it. Attempting to track each recurring payment in a large corporation draws necessary resources away from other business operations.

Employing an automated system is the key to managing the many different business options that need to be offered to customers to maintain the integrity of the company and the subscription service. CyberSource is that automated system. While CyberSource Account Updater is great for keeping customer credit card information up to date, the option to take it a step further with direct debit transfers can benefit both your business and your customers. 

CyberSource with Direct Debit and Bank Transfers

Direct Debit bank transfers with CyberSourceDirect debit payments are very similar to using electronic checks to pay for recurring subscription services. In this instance, the customer’s bank transfers the customer’s payment directly into the business account at the time of sale. Customers like direct debit payments because they can set their bank accounts to automatically send the payments on certain days, and the funds are automatically withdrawn from their accounts.

Bank transfers are another common way to pay subscription services. Much like wire transfers, the order must be confirmed with a sales reference number in order for the customer’s bank to send the payment to the business account. Bank transfers are more common and popular for international sales where conversion rates apply, but there are local customers who rely on this method as well.

With CyberSource payment integration, CyberSource offers both direct debit and bank transfer options for customers enrolling in subscription-based purchases or services and recurring payments. Completing a transaction is simple and secure thanks to the unique token ID that is assigned to each customer. This token provides necessary PCI security, and it allows customers to create and manage their unique payment options. Promotions, automatic direct debit payments and many other options are available via CyberSource’s unique billing system.

Customer and Business Options

Customer and business benefitsWith the CyberSource eCommerce platform, both businesses and customers have the option to make adjustments to their subscriptions. Customers are able to adjust the products or services that they hope to receive, and they can often select their recurring payment date and method.

Businesses, on the other hand, have many options this method as well. By looking at recurring payment data, businesses can more accurately predict their revenue, plan specific promotions and reach out to past clients that have discontinued their services. Having access to this type of data thanks to the management software of CyberSource makes it easier to scale a business more accurately. The system’s method of tracking recurring payments makes it simple for businesses to request the most up-to-date records for the billing cycle. With this information, those businesses can choose to create targeted campaigns, consider discounted rates for loyal customers or even offer additional subscription services.

Collecting recurring direct debit and bank transfer payments has never been so easy as it is with CyberSource billing system.

Clarity Can Help

When paired with our Clarity eCommerce management software, CyberSource offers unlimited payment options for customers in a seamless user interface. You can make it easier for your business to track and manage your online selling, especially if you are adding subscription-based services. Our experienced developers can customize Clarity’s eCommerce platform to give you the business experience you need. Contact Clarity today for a free consultation and quote for the services best suited for you and your business.