What Is Recurring Billing Software?
Recurring billing software refers to online systems that automate charges to a customer for goods or services. The features generally included in the software are integrations, reporting, recurring invoicing, deferred billing, multi-period billing, payment processing, and multicurrency features.
Each platform has a different method of deployment. The most popular ones are web-based, cloud, and SaaS systems, but they can also be integrated into an Android and iOS interface. Others also include Windows and Mac versions.
The best recurring billing software relies on scheduled tasks and payments to make a business’ work less stressful, saving time and money. Introducing more clients over time doesn’t mean more work, since they’ll fall in line with a system that’s already in place. It operates on a subscription process, with communications and reminders also automated.
Benefits of Recurring Billing Software
No matter the size of your business, the best recurring billing software offers some distinct advantages to the operations of your company:
- Convenience: Instead of providing their payment details every time they want to pay, the software allows the merchants to keep their details on file.
- Reduces missed or late payments: The costs involved with tracking down people for late payments can end up being more than the original amount due. That’s where automated billing eases the process and reduces the chances that consumers can pay late.
- Security: The security methods to safeguard consumers’ information are much more extensive on a recurring billing system. These systems are continually tested for their safety and need to be PCI (Payment Card Industry Data Security Standard) approved.
- Increase market size: The software makes taking your business to the next level much more achievable. The convenience of the subscription model is desirable to consumers. It also makes your products and services accessible to a broader audience, increasing your chances of growth.
- Subscription flexibility: It’s an advantage not only to the company but to the customers. The recurring billing software with good API documentation can provide a hardy system to fulfill all the needs a client might have.
Must-Have Features of Recurring Billing Software
When looking for the best recurring billing software in 2021, there are a few essential features you need to ensure it has:
- Pause and resume subscriptions: At certain times, customers might want to take a break from using your services. There could be a variety of reasons for this, from money problems to relocation. You should allow them the opportunity to put their account on hold for some time and let them resume it again when they’re in a position to do so.
- Cancellation reports: If a customer wants to stop using your services permanently, you’ll want to know why. Cancellation reports will let you see the reasons they left. If it’s something to do with your business, you can address the problem to avoid losing more clients in the future.
- Customer support: Your customer is the most critical part of your business, and ensuring they have adequate support when issues arise is vital. Many consumers choose companies based on their support team and if it isn’t up to scratch, you could lose your client base.
- Dunning management: This allows you to retrieve failed credit card payments. There are several reasons these failures occur, including temporary holds, insufficient funds, and cards being expired. Knowing the reason a decline occurred is crucial for your bottom line. If you can add an automated dunning process, you can capture funds that might have disappeared.
The Cost of Recurring Billing Software
Price is a varying factor when it comes to recurring billing software. Some of the platforms we’ve mentioned offer free access to their system before expecting you to pay, while others require that you purchase before you get to engage with the software. The free versions on offer have limited features, and additional access to other tools can mean you need to start paying.
Many of the payment plans are monthly subscriptions, with a few charging an extra percentage on transactions. The monthly fees can run anywhere from $6 a month up to $499 a month. These price points usually depend on the demographic the software is marketed to.
Other companies don’t publicly publish their pricing; you’ll need to contact them and request a quote for these plans. Those that require you to request a quote tend to offer a free trial, which allows you to get a feel for the software. It can be tricky as you won’t know the cost before you actually sign up.