1. Make sure the client is aware of what will happen if their account has insufficient funds.
This is the equivalent of a bounced cheque. It may be that the first time this happens, you’ll give the client a little leniency. After that, a fee or percentage of the amount due will be charged. The client may also face a charge from their bank or credit card company, so they will work to avoid this.
2. Let the client know if they have the option to change their recurring payment date.
Similarly to making a credit card payment, it may benefit your client to change their due date at some point; perhaps due to their own cash flow. They may want to move their date from mid-month to the end of the month, for example.
3. If you’re going to allow clients to change their payment method on a selective basis, make sure those parameters are also stated upfront.
For example, one month, the client may need to change the debited payment from coming out of their business bank account to a card. If you’re willing to allow this, make sure that your online accounting system is capable of supporting this change.
4. Determine if you will allow the client to make ad hoc payments outside of the monthly fee.
In the case of variable payments, this is a way for the client to pay off the total amount more quickly. Additionally, you should make it clear that any additional payment that is made will be in addition to the recurring payment.
Paying separately throughout the month will not allow the client to “skip” their recurring monthly payment.
5. Lastly, confirm all of the information with the client.
This includes their banking or credit card info, and who to contact regarding any issues with billing. Also, be sure that the client receives a signed copy of all of the regulations they’ve agreed to.