Guide to Choosing a Merchant Account for Recurring Billing
A merchant account for recurring billing is a great way to offer your customers value-added services. Manage your cash flow and increase the potential for upsells with subscriptions for Nutra via our secure payment gateway for recurring billing and high-risk invoicing.
Yet, many small businesses avoid setting up recurring billing for fear of being locked into a contract or other hidden fees. Recurring billing isn’t that complicated, especially when you know what’s important to consider. Always make sure you understand what you are paying for high risk merchant account fees in general.
Recurring billing works well for many transactions, including:
- Monthly membership fees
- Subscription services
- Online services
- Software as a service (SaaS)
- Membership websites
- Service providers
- High ticket merchant account for high priced items (spread the cost into smaller payments)
This guide will help answer any questions you have about choosing the right merchant account for recurring billing and give you details about the different types of merchant accounts available on the market today.
What is Recurring Billing?
Recurring billing is a practice in which customers are charged for an ongoing subscription or service. This is different from a one-time payment, where the customer pays a sum of money once.
Recurring billing is more common with subscriptions, as customers may be charged for an ongoing subscription or service at regular intervals, for example, every month. With recurring billing, it is possible to charge customers different amounts each time they are billed.
Recurring billing helps build a strong relationship with your customers and can result in increased sales once they become familiar with your business.
Don’t be afraid to try out different payment plans (such as ACH automated payments or monthly installments) to see which one works for you and your customers.
What Is a Merchant Account for Recurring Billing?
A merchant account for recurring billing is the type of payment processing account that businesses use when accepting credit or debit card payments. The idea is to give your customers the option to pay for their products using a credit or debit card instead of cash, as well as being able to offer payment plans.
A merchant account is what allows you to process payments from your customers’ cards: It’s an account that you’ll need to open with a card processor. You’ll also get a unique merchant account number or Merchant ID that identifies your business when processing payments.
This way, the payment processor can track which sales go to which businesses.
Why Use a Merchant Account for Recurring Billing?
A merchant account for recurring billing is essential if you want to offer customers the option to pay with a credit or debit card. Most payment processors will only work with you if you use one of their merchant accounts.
When you’re setting up recurring billing, the card processor will take the customer’s card details and store them in your account. This way, the customer won’t have to provide their information every month. Instead, they can simply charge the card they already have on file with the processor. It’s the simplest and most convenient way for customers to make recurring payments. Plus, you’ll have a record of their payment details in case you need to dispute anything.
Quality providers will also provide you with the tools you need, such as creating payment plans and providing a payment gateway for high risk business which extends to your customers.
Benefits of Recurring Billing
Recurring billing is a great way to ensure that your customers are always paying you. It’s also a good way to spread out the cost of any one-time charges, such as a monthly mortgage payment or utility bill.
One of the main benefits of recurring billing is that it allows you to collect payments regularly and automatically. This makes it easier for you to budget and plan.
Some people prefer recurring billing because it makes it easier to track their money. They know exactly how much they have to spend each month, and they can plan accordingly.
People who use a recurring billing Nutra payment gateway tend to be more loyal to their business because it makes them feel like they’re getting value for their money.
Recurring billing can also help build customer loyalty by allowing you to offer a merchant services cash discount program or other incentives to customers who continue to buy from you over time.
How Do You Get Recurring Payments from Clients?
There are several ways to get recurring payments from clients, including invoice financing, payment-by-installment plans, and payment-by-results programs.
One of the most effective ways to get recurring payments from clients is through a subscription service. For example, if you offer cleaning services, you could offer a monthly cleaning package, where customers pay a monthly fee for all their cleaning needs. To make it more attractive, you might consider offering additional benefits such as discounts on other services.
Other examples include paid training or consulting services, or even a membership site where customers pay a recurring membership fee.
Another way to get recurring payments from clients is to offer installment payment plans. With installment payment plans, you agree to accept periodic payments from your customers in exchange for providing them with goods or services.
Many businesses choose to offer “bundled” services, where they charge a one-time up-front fee and then provide multiple services at discounted rates or bundled together in a one-time fee. This can be particularly effective when you combine it with value-added products such as digital marketing or consulting services, and then add benefits such as discounts or free extras.
How Much Does It Cost to Process Recurring Payments?
Whenever you want to process a recurring payment, your business has to pay a processing fee.
The processing fee is usually set by the merchant service provider (MSP), but it can also be set by the payment processing company.
The cost of recurring payment processing can range from a few cents to a few dollars, depending on the type of payment you’re processing.
Another factor to consider is whether your business has multiple locations or just one location, as these factors will affect the cost of processing.
Common recurring fees include monthly card processing fees, late fees, and refunds. There are also additional fees for credit card processing, such as the Merchant Discount Rate (MDR). MDRs are a percentage of each transaction that covers the cost of credit card fraud prevention and is charged to the merchant by the service provider.
With SecureGlobalPay, recurring payments are a free feature. They are easily set up from our control dashboard and the only additional fees you pay are those for processing the transactions.
What Type of Merchant Account Should You Use for Recurring Billing?
Now that we’ve established why you’d use a merchant account for recurring billing, let’s talk about which specific type of account you should use.
Here’s a breakdown of the different types of merchant accounts for recurring billing and their pros and cons:
- Traditional merchant accounts for recurring billing: Traditional merchant accounts are the most basic type of account for recurring billing. They’re typically best for start-ups and small businesses, given their low cost. However, traditional accounts can be difficult for new or high-risk businesses and businesses can have their accounts banned or investigated easily.
- High-risk merchant accounts for recurring billing: While these accounts come with higher fees, they also come with extra protection and flexibility. They can handle high volumes of transactions, service high-risk businesses, protect against fraud, and lots more. The only real downside is the slightly higher fees compared to a traditional account.
- Hosted or managed merchant accounts for recurring billing (incl. high-risk merchant accounts): Hosted or managed merchant accounts are only offered by a handful of providers at this point. These accounts are a step up from traditional merchant accounts in that they offer additional services, such as accounting and analytics. In return, they typically come with higher fees.
- Specialty merchant accounts or third-party vendor accounts for recurring billing: Specialty or third-party vendor accounts are designed to serve businesses in specific industries. For example, a healthcare sector company may want to look for a third-party provider that specializes in HIPAA compliance requirements that the industry faces.
How Do I Set Up a Recurring Billing Merchant Account?
There are a few different ways to set up a recurring billing merchant account, below are a couple of the main ways:
1) You can create an account with a bank or credit card company and then use that account to collect payment from your customers. However, you will often need a payment gateway or service to enable the collection and automation of payments.
2) You can sign up with a third-party provider like Stripe, SecureGlobalPay, or Braintree and then use these services to process your payments.
When setting up recurring billing, consider the following factors:
- Make sure that your recurring billing service provider offers a simple and secure setup.
- Make sure that your service provider charges reasonable transaction fees for each transaction.
- Make sure that your service provider offers flexible payment options such as weekly or monthly payments and invoice reminders.
- Make sure that you can cancel the recurring billing subscription at any time.
- Make sure that you can keep track of all of your transactions and refunds made through this account.
Once your recurring billing merchant account is set up, you can begin collecting money from customers by charging them each time they make a purchase.
How Do I Set Up a Nutraceutical Merchant Account with Recurring Billing for My Business?
A nutraceutical merchant account recurring billing system is a type of merchant account for the nutraceutical industry. It allows merchants to accept payments related to nutra products, such as dietary supplements and other health-related products.
As the name suggests, nutraceutical businesses sell nutraceuticals, which include foods, beverages, and supplements that are intended to improve overall health.
A nutraceutical recurring billing merchant account allows nutraceutical companies to set up recurring billing plans, which means that you can charge customers each month for their purchases. It also offers flexible payment options such as credit cards and ACH bank transfers.
In addition to processing payments, a nutraceutical merchant account recurring billing plan may also provide reporting features that allow you to keep track of sales and expenses.
Setting up a nutraceutical merchant account with recurring billing for your business is quite simple. You can get started by creating a merchant account on an online payment processing platform. Once that’s done, you just need to choose the recurring billing options that work best for you and then fill out the requisite paperwork to finalize your account setup.
If your business generates recurring revenue, setting up nutraceutical merchant processing with a recurring payments Nutra payment gateway could be one of the easiest ways to start making extra money right away.
How to Find the Best Merchant Account for Recurring Billing?
Once you start shopping around, you’ll want to find the best merchant account for recurring billing, and possibly that’s how you’ve ended up reading this article.
What you’ll want to do first is create a list of potential providers. You can find out who your competitors are using and then see which recurring billing merchant account providers they use.
Next, create a list of questions you’d like to ask each nutraceutical merchant account recurring billing provider on your list. Here are some sample questions you might want to include:
- Can chargebacks or high-risk niches cause account issues? (Depending on your company)
- What kind of plan does the recurring billing merchant account come with?
- What are the transaction fees for the plan?
- What kind of support does the provider offer?
- How long does it take for the account to be set up?
- Does the provider offer any additional features at no extra cost, such as dedicated account management, recurring payments, payment gateways, etc.?
- Does the provider specialize in serving businesses in the required industry?
- How long has the provider been in business?
- What are customers in my industry saying about this provider?
For the last question, you may also want to check high risk merchant provider reviews online and independently from the provider’s website.
What is the Best Recurring Payment Nutra Payment Gateway?
The best recurring payments Nutra payment gateway for Nutra merchants is one that makes it easy to accept recurring payments from your customers. They are also a low-cost way to build recurring revenue for your business.
With recurring payments, we mean a payment method that charges customers regularly. Recurring payments are typically paid by credit card or bank account. They’re the most common type of payment gateway in use today.
The best recurring payments Nutra payment gateway is determined by many factors, including the type of product offered and its ease of use. Security is another important factor to consider.
You can find more information about our recurring billing Nutra payment gateway with different types of set-ups available in our video “Recurring Billing” which is suitable for selling nutraceutical products.
How to Best Optimize a Recurring Billing Nutra Payment Gateway
Reputable recurring billing nutra payment gateway providers will use a variety of tools to ensure that your customers are making the optimal choices.
This setup allows customers to automatically pay for future purchases based on a predefined schedule, split payments, or subscribe to services and purchases.
The beauty of the recurring billing nutra payment gateway approach is that it can significantly reduce the amount of time and effort required to onboard new customers. And, because it’s automated, recurring billing can also help reduce chargebacks and other transaction-related issues.
The best high risk payment gateway for high risk business provides tools for calculating customer churn rates while ensuring that current customers are making their payments on time.
Other metrics that can be tracked include the number of times your customers sign up for recurring orders, as well as how many times they cancel/refund their payments. It’s always best to discuss options with your sales representative to help ensure things are set up correctly from the onset.
To optimize the performance of recurring billing, you need to take the following steps:
1) Identify your typical customer base and determine how they typically consume your product or service.
2) Determine which types of customers tend to have the highest purchase frequency.
3) Select a recurring billing nutra payment gateway that caters specifically to these high-frequency users.
4) Set up automatic triggers for the payment gateway that correspond with your typical customer intake patterns.
5) Create a dedicated landing page for your new recurring billing accounts.
Things to Look Out for When Selecting a Merchant Account for Recurring Billing
Before you sign on the dotted line and get your hands on recurring billing, make sure to look out for the following when you’re investigating potential providers:
- Are there any hidden fees? Some companies charge a setup fee or an application fee, but these are usually nominal charges.
- Is there a cancellation clause in the contract? If you find the right merchant account for recurring billing, you don’t want to lose it. Make sure to read the fine print.
- What type of account does the provider provide? Again, you want to look for recurring billing providers that use a type of account that best suits your business.
- How long has the provider been in business? Look for providers that have been in business for at least one year and have a proven track record.
Now that you know what to look for in a merchant account for recurring billing, it’s time to get your business set up for success.
Recurring billing is a great way to offer your customers value-added services, manage your cash flow and increase the potential for upsells.
It’s also an easy way to collect payments from customers who may not be able to make a single payment at the start of their subscription.
Just make sure you choose the right merchant account for recurring billing, such as SecureGlobalPay – why not try our demo account?