As a small business owner, you’re always on the lookout for ways to increase sales and improve customer services. One way you can do this is by making payment easier for your repeat customers with automated billing four products or services.
Find out why you should offer recurring payments and how you can set them up at your business.
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Recurring payments let you get paid automatically by charging your customer for the same amount on a scheduled billing cycle, whether that be daily, weekly, monthly, or annually. If your business charges for retainers, rentals, SaaS, or any other kind of consistent fee, then recurring payments could be a great way to streamline the payment process for them and automate the entire invoicing process for you.
Suppose your business offers monthly lawn services that provide manicured lawns and weeding. If you have a large customer base that regularly uses your services, you may want to switch to recurring payments. This allows your customers to receive their usual services without the need to actively pay you each time.
After a one-time set up process, your fee will automatically come out of their payment account each month. This streamlines the process for both the customer and your business, and allows both of you to have more predictable cash flow.
Other business types that benefit greatly from automatic bill payments are subscription-based services. If you or someone you know uses Amazon Prime, Netflix, or subscription box services, they have signed up for automatic and recurring monthly charges on their credit card or bank account.
So, what time do automatic payments go through as charges on a customer’s account?
You can select when to charge, either immediately or at a future date. If you set up for immediate charges, then the first charge will happen on the day that your customer consents to the recurring payment. The next charge will happen on the next occurrence of the interval that you scheduled. If you choose this method then you will have payments coming from customers on different days throughout the month.
If you set up for future charges, the recurring payment will begin on a specific date and repeat as per the selected interval. If you prefer to have all your customers pay on the same date of the month, this would be the method you should choose.
By automating with recurring payments, your customers enter their own payment information independently and confidentially through a secure online portal. Your customers can manage and update their own payment info through the online portal. With recurring payments, you avoid the hassle and security risks of maintaining card or file records or checks lost in the mail.
Service providers and online software can be your business’s best friend when scheduling automatic recurring payments or offering auto-pay options to your customers. When you are considering providers, make sure to look for providers that offer a secure payment portal and have a trusted reputation. The main three we will be looking at are:
In QuickBooks Online, you can connect QuickBooks Payments to take online payments when you send recurring payments, invoices, or payment links to customers. You can also get paid in-person with the GoPayment app and contactless payment options like Tap to Pay on iPhone or with a card reader. There are no monthly fees or minimums, just pay per transaction.
Follow the steps below to set up recurring payments with QuickBooks for your customers:
If your business uses the PayPal platform, then you will also be able to take advantage of recurring and automatic billing options. To set up PayPal recurring payments and subscription services you must first sign up or log in with your PayPal Business account.
Once entered into the online portal, click on the Tools option, and find Recurring Payments. From there, PayPal will guide you through a step-by-step process on creating subscription payment buttons for your services, allowing you to auto-bill customers at regular intervals throughout the year.
Square is another secure payment system option to use for your business. If you use Square for collecting payments from your customers, you’ll easily be able to set up auto-pay options with them.
To set up Square recurring payments you will first need to sign up or sign in with your business account, and then follow these steps:
If your customers’ card information is already on file, their account will be charged automatically at the intervals you prescribe. However, if their card is not online, they can pay you through the automated invoice sent to their inbox. Once charged, the money will hit your business account within one to two days.
The benefits attached to scheduling recurring payments to your customers is immense. These days, people are looking for the quickest and most convenient way to do things. Providing customers with automatic and recurring payment options offers them efficiency and an easy to use service that they won’t have to worry about.
Customer satisfaction could go up, as they receive their product or service weekly or monthly, without the hassle of having to provide their banking or card details every time. Customers can enter their payment information once and manage it through a secure online portal.
From the side of your business, it will make cash flow more consistent. As more of your customers are set up with this payment method, the more consistent revenue your business will be making, without the hassle of manual invoicing, maintaining card on file records or chasing payments.
If you’re looking to set up automatic payments within your small business, consider using QuickBooks Recurring Payments as it offers safe, secure, and easy payment methods. Switching to recurring payments means you're not relying on anyone to remember to pay on time—it's all taken care of.
If you’re already a QuickBooks customer, recurring payments is a feature that can be easily added to your plan. Start streamlining your payment process today so you can get paid on time, every time.
Disclaimers
Money movement services are provided by Intuit Payments Inc., licensed as a Money Transmitter by the New York State Department of Financial Services. For more information about Intuit Payments' money transmission licenses, please visit https://www.intuit.com/legal/licenses/payment-licenses/.
QuickBooks Payments: QuickBooks Payments account subject to eligibility criteria, credit, and application approval. Subscription to QuickBooks Online required. Not available in U.S. territories or outside the U.S.
Automatic Matching: QuickBooks [Online/Money] will only match bank deposits with transactions processed through QuickBooks Payments. Not all transactions are eligible.
Eligible payments are automatically matched with 100% accuracy: QuickBooks Payments transactions made outside of QuickBooks Online are not eligible for automatic matching. Not all financial institutions participate.
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