| Auto recurring billing enables businesses to | | | | households currently use ACH (a direct-debit from a |
| automatically bill customers for balance due without | | | | checking or savings account) for at least one monthly |
| sending invoices or obtaining payment information | | | | bill. Auto recurring billing takes ACH to the next |
| each any every time money is collected. With | | | | leveleliminating the need for the customer to actively |
| recurring billing programs businesses can utilize any | | | | pay a bill (whether by paper check or online). |
| electronic payment process including direct-debit ACH | | | | Direct Benefits of Auto Recurring Billing for |
| transactions and credit/debit card transactions. In | | | | Customers include: |
| addition, when businesses convert legacy payment | | | | * Bills are automatically paid on-time, every-time, |
| systems to auto-recurring systems utilizing exclusively | | | | even if customers are ill or out of town. |
| ACH direct-debit transactions, they typically reduce | | | | * Late payment fees are eliminated |
| processing costs by over 50%. | | | | * Time and expense of writing and mailing checks is |
| Direct Benefits of Auto Recurring Billing for | | | | eliminated |
| Businesses include: | | | | * Customers can keep electronic records of all |
| * Faster payment processing (you get your money | | | | invoices and receipts |
| faster) | | | | * Electronic payments are more secure than paper |
| * Elimination of printing, mailing and postage costs | | | | checks |
| * Elimination of defaults and associated collections | | | | How to Implement an Auto Recurring Billing Program |
| activities | | | | Implementing an auto recurring billing program is |
| * Streamlined data entry and bookkeeping | | | | simple. If you currently accept payments electronically |
| * Elimination of time consuming trips to the bank | | | | via direct-debit from a checking or savings account, |
| * Normalized cash flow | | | | or via credit card, you can likely use your current |
| * 24 hour NSF notification | | | | payment processing system to implement auto |
| * Improved customer service | | | | recurring billing. The auto recurring program can be |
| * Ability to accept payments funded from credit | | | | implemented in two ways. |
| debit cards, checking account and savings accounts. | | | | 1. Use the auto recurring billing functionality in your |
| Auto recurring billing systems can be used for both | | | | business management software (such as |
| static recurring charges (the same amount each time) | | | | QuickBooks), and export a batch (daily, weekly, |
| or for variable bills. In either case, the recurring billing | | | | monthly) for processing in your payment processing |
| system saves time and money by obtaining advance | | | | system. This is best for variable payments. |
| authorization from customers to charge their | | | | 2. Implement the auto recurring billing function in your |
| accounts on a regular frequency and by entering | | | | payment processing program (note that some |
| customer information into a database system only | | | | companies require an additional charge for this |
| once. That data is then accessed whenever | | | | function.) This is best for static payments. |
| payments are processed, and the customer record is | | | | If you dont already accept electronic payments, you |
| updated to reflect each payment collected. The two | | | | will need to subscribe to this type of service. The |
| examples below provide the steps involved in auto | | | | simplest way to do this to find a service such as |
| recurring billing systems that process static and | | | | PaySimple that will enable you to perform ACH |
| variable recurring charges. | | | | transactions using your current business bank |
| Auto Recurring Billing: Static Amount | | | | account. This system will enable you to set-up an |
| 1. Customer data is entered once (including amount, | | | | auto recurring billing program for your customers |
| frequency, duration, type of transaction and account | | | | where you can direct-debit their checking accounts |
| information) | | | | for outstanding balances. (An additional benefit to this |
| 2. Payment Processing System charges/debits | | | | type of system is that you can electronically process |
| account on schedule and counts down payments left | | | | any paper checks you still receive from customers |
| (system can also be set for indefinite duration) | | | | who do not elect to participate in the auto recurring |
| 3. Payment processing system automatically | | | | billing program.) |
| generates an email receipt for the customer and | | | | Marketing an Auto Recurring Billing Program to Your |
| copies the vendor. | | | | Customers |
| 4. Payment Processing System automatically identifies | | | | Once you have processing capability in place, you can |
| all failed transactions and reconciles with main | | | | open the auto recurring billing program to your entire |
| database. | | | | customer base. Many consumers know about these |
| Auto Recurring Billing: Variable Amount | | | | programs and are excited to sign-up for the new |
| 1. Customer data resides in external database that | | | | offering. Others need to be educated about the |
| calculates payment due | | | | electronic payment process, and the benefits it can |
| 2. Data, including amount due and account information | | | | provide them. |
| is exported to .csv file. | | | | Note that you cannot enroll a customer in an auto |
| 3. .csv file is uploaded to payment processing system | | | | recurring billing program without explicit permission. |
| as a batch | | | | Each customer must provide you with bank account |
| 4. Payment processing system processes all | | | | information and sign a form giving you permission to |
| transactions in batch | | | | debit that account. |
| 5. Report is generated for all successful and | | | | Electronicpayments.org provides a wealth of |
| unsuccessful transactions | | | | information about electronic payment processing, and |
| 6. Report is exported and then uploaded back into | | | | also provides materials you can use to educate your |
| original database, reconciling all open balances with | | | | customers. PaySimple also provides a welcome kit to |
| processed payments | | | | all customers that contains a complete auto recurring |
| Why Your Customers Want Auto Recurring Billing | | | | billing marketing plan with associated materials. |
| Auto recurring billing is not only a time and money | | | | Most organizations introduce auto-recurring billing |
| saver for businesses, but for consumers as well. In | | | | programs by sending a letter to the customer base, |
| fact, many consumers are demanding it from the | | | | and asking them to sign-up for the program. A |
| companies with which they do businessand if you | | | | sample customer letter is available from: |
| dont offer it, your customers may select a | | | | When customers have signed up, you stop mailing |
| competitor who does. | | | | them paper invoices, they stop mailing you paper |
| NACHA.org, the organization that oversees all | | | | checks and all billing and collections are handled |
| electronic payments, reports that 54% of all US | | | | electronically. |