Payment Terms Defined: Recurring Billing

Recurring billing is an arrangement between a merchant and a customer that involves regularly scheduled charges to the customer’s credit card  

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Payment Terms Defined: Recurring Billing

Jul 17, 2017

Payment Terms Defined: Recurring Billing

Recurring billing is an arrangement between a merchant and a customer that involves regularly scheduled charges to the customer’s credit card for goods or services. Sometimes called subscription billing, it is typically used for dues, club memberships, utility bills and installment payment plans.

Before setting up recurring billing, the merchant or service provider must obtain the cardholder's permission to charge the card. Both parties agree on a designated schedule for billing is agreed upon (weekly, monthly, quarterly, annually), and the arrangement continues until it is cancelled by the cardholder.

Recurring billing programs have many advantages for businesses. They can save time and money by eliminating the need to send bills or collect outstanding balances or late fees. Payments are always on time, creating a steady revenue flow. Once set up, recurring billing requires little effort since the payments are billed automatically to the cardholder's account. Businesses that offer recurring billing are catering to the many customers who appreciate being able to schedule payments and forget them, creating loyal repeat customers.

EnsureBillSM from TSYS® provides the added bonus of securely and automatically updating customer card data, including card numbers and expiration dates. This helps to ensure steady service for customers and a steady revenue flow for the merchant or service provider.

Recurring billing is one more in-demand merchant service available from TSYS that can improve the efficiency of your business. To learn more, contact a trained representative today who can answer all your questions about our products and services.