B2B and Recurring Billing
Common features of recurring billing software and systems
Ever since subscription based services have increased in popularity, recurring billing software and applications have become necessary. There are numerous different billing software and services that are capable of handling recurring billing. Even some eCommerce platforms are built to be able to offer recurring billing. While recurring billing is often associated with B2C and subscription based services, it can also be extremely useful for B2B businesses in a number of different ways.
What is Recurring Billing?
Recurring billing is where a customer is charged for goods or services on a prearranged schedule. Usually the business keeps the customer’s credit card and information on file and charges it on schedule until the customer exits the agreement. Recurring billing can be useful for subscription based services, bills, and memberships. For B2B businesses, recurring billing can allow their customers to pay installments instead of one lump sum, guaranteeing monthly revenue for the business while helping customers better control their finances. A recurring billing situation can also work for a B2B business where customers place the same order every week or month.
Endless Billing Schedule Options
One of the great features that advanced recurring billing software has in common is the ability to arrange billing on any schedule. You could schedule it to happen daily, weekly, monthly, every 10 days, every 40 days, or whatever works for you and your customers. You can also easily put each customer on a different schedule, depending on their needs and their orders. One you set up to payment schedule, it is automated and the software or application takes care of the rest.
Automate Payment Reminders and Receipts
Another excellent aspect of recurring billing is that you can automate payment reminders and/or receipts for your customers. Some recurring billing services have the functionality to send automated email reminders to customers while others might need to be integrated with your marketing system to be able to do it. You could choose to send a reminder to your clients that their card will be charged a certain amount on a certain day, or you could send a receipt letting them know that their payment has been received and processed for the week, month, or other agreed upon time period.
Dealing with Payment Issues
As with any payment method, you are going to have some issues that arise, like incorrect card information or declined payments. Most recurring billing software are built to help you handle issues like these. The software can be set up to send you and the customer a notification letting you know if a customer’s credit card is about to expire or if a payment was declined. This then gives you the chance to get updated card information before the next payment is due, keeping you from losing the sale.
Clarity Can Help
Our team at Clarity has decades of experience implementing business solutions to help make doing business easier for our clients. We have successfully set up and implemented multiple recurring billing systems for some of our clients. Clarity eCommerce, our eCommerce platform, is capable of handling recurring billing for our clients. To find out more about recurring billing or to speak with an expert about setting up your business’s recurring billing system, call or click to contact us today!