|February 26th, 2021|
The high-risk merchant accounts are subscription billing and recurring payments that stabilize the cash flow. These accounts do help in increasing the profits.
Recurring billing reflects high-risk merchants with predictable revenue streams. It does expand the lifetime value of customers in comparison to customers who prefer one-time transactions.
As many economists believe, once a recurring payment gets established, customers are accustomed to glancing at the bank statements. Payments get continuously transferred until the customer cancels it or if the term of the agreement expires.
Consumers do enjoy the convenience of recurring monthly payments for utilities, rent, and other household bills.
Recurring payments are the easiest ways to increase orders for any growing enterprise
Some of the common examples where the high-risk merchants enjoy the benefits of recurring payments are digital advertising, professional services, online gaming, digital entertainment, installment lenders, and social media platforms too.
1. Companies involved in insurance, telemedicine, newsletter, subscription services, and eCommerce offer several benefits to high-risk merchants in the finance field.
2. Ecommerce is the growing segment for recurring billing. Online sellers offer a wide range of recurring billing plans and affordable installment payment options too.
3. Ecommerce merchants promote sales through special offers listed on the shipping as well as downloaded items.
4. Credit/debit cards and e-check are the two primary payment methods. Thus for a merchant, it is always advisable to offer customers different payment options.
5. Debit and credit cards are the most common payment method for US shoppers. Therefore, if a merchant service provider accepts eCheck payment, he also captures buyers’ information.
Is it true that recurring payments are the source to increase cash flow for companies holding merchant accounts?
Recurring payments are known for subscription billing models for online entertainment, internet services, download, and digital goods that high-risk merchants sell.
One of the most added advantages of recurring billing is that it forecasts predictable revenue for high-risk merchants.
More and more customers are becoming comfortable with recurring billing. According to Aite Group forecasts, a near around 5.6 billion bills got paid online in 2012. From that time, consumers have begun to enjoy the convenience of recurring monthly payments for utilities, rent, and other household bills.
Take a Glance at 4 Amazing Reasons Why Recurring Payments Do Increase the Revenue
1. It offers an excellent reason to customers to go in favor of recurring payments. It generates more benefits of recurring payments to bottom line profits. In other ways, it motivates customers to sign up by offering a discount or any other type of incentive.
2. It helps merchants in signing up the process. It also ensures that procedures are easy to understand. It even inform customers about the time where the billing occurred.
3. If a customer wishes to cancel recurring billing, then it is possible with it.
4. At the time of the first cycle of recurring billing, it notifies the consumer in advance of the debited payment. Many merchants continue to send notifications of billing almost every month.
5. One needs to accept alternative payments like checks along with credit cards. It is believed that millions of Americans pay for goods and services online by electronic checks.