» For Merchants
· Touch Tone
» For Businesses
· Trade Credit
· Level 3 Purchasing
· EBPP Bill Presentment
· Recurring Billing
» For Community Banks
· Payment Services
Recurring Billing Payments
are those for which a cardholder gives permission to automatically
charge his or her account on a regular basis. The benefits to the
merchant include lowering outstanding receivables, improving cash
flow and cutting collections cost and bad debt as well as updating
the image of your company and enhancing customer service.
The option to
pay recurring bills with a card is eagerly sought by the customers
with whom you most want to build relationships - young, well-educated,
prosperous individuals who use their cards actively and spend heavily.
Research shows that these customers want card payment options for
automatic bill payment because they:
- Want to feel
in control of finances without worry of deadlines and late charges.
- Want choices
in how they pay their recurring bills.
- Have a comfort
level with technology.
Special low Interchange rates are available making the cost of accepting recurring credit cards as low as if they were face-to-face "card present" transactions. These emerging market rates apply to governments, schools, utilities, insurance, cable, and pay television.
Get an emerging market merchants rate quote now!
Requirements for establishing a recurring transaction:
Visa requires the merchants to obtain an order form from the cardholder to establish a recurring payment process. The order form must contain the transaction amount unless the recurring transaction will be for varying amounts, the frequency of the recurring charges, and the duration of time for which the cardholder permission is granted. The order form should also contain the cardholder's signature (written or electronic) authorizing goods or services to be periodically charged to his/her account. The order form may be any of the following; mail order form, recurring transaction form, preauthorized healthcare transaction form, or an e-mail or other electronic record that meets the requirement.
If the request is submitted via the Internet, the merchant must provide a transaction receipt. The receipt should include the frequency and duration of the recurring transaction as agreed by the cardholder and “Recurring Transaction” indicated on the signature line. The merchant must adhere to Internet transaction requirements regarding cardholder data security and receipt requirements.
To ensure customer satisfaction
Provide customers with a toll-free number, an e-mail address, and/or easy to find and use online procedures for recurring service sensitive.
Fully disclose all necessary transaction term and conditions.
Notify the customer of the transaction before or at the time of billing.
The merchant should supply notification of how to cancel a recurring payment authorization. If the merchant allows the recurring payment to be established via the Internet, they must also provide a cancellation option electronically.
To cancel recurring transactions
Check customer logs daily for recurring cancellations. Take the appropriate action in a timely manner.
Notify the customer that the account has been closed.
Process all credits promptly and notify the customer.
Provide the cardholder with the recurring transaction cancellation number.
Recurring transaction prohibitions:
The merchant may not charge finance charges for a recurring transaction. Nor can they deposit the recurring transaction if the cardholder has cancelled, deposit the transaction if the authorization is declined, or submit a partial payment for goods or services purchased in a single transaction. The cardholder account number may not be used for any purpose other than a recurring payment.
Processing recurring transactions:
When submitting a recurring transaction, the “Recurring Payment Indicator” must be included in the authorization record. Authorization is required on all recurring payment transactions. Visa transactions require AVS on the initial transaction. The subsequent Visa transactions do not require AVS unless a change in the cardholder/merchant agreement or the duration of the recurring payment is more than one year apart.
Recommended Recurring Payment Solution:
Vantage merchant accounts are also compatible with a wide array of terminals, point of sale systems, and software designed to handle recurring billing payments.
For more information
about how to set up automatic card billing including sample authorization
forms, contact a Vantage professional using the form below.