Smart Recurring Billing
What is Smart Recurring Billing?
First of all, let’s sort out what recurring billing is. It is a payment type when the merchants withdraw money on the pre-arranged schedule. To put is simple, the user shops in the online store for goods or services. The store uses the recurring billing (or subscription billing) model. After adding goods or services to the card, the shopper agrees to let the merchant automatically withdraw a certain amount from their account on some schedule.
What’s important, the users do not need to approve this action each month. So, as long as the users want to receive some goods or services, he/she will let the merchant to withdraw the money. Once the shopper decides to stop receiving the goods he/she can cancel the subscription.
To avoid chargebacks, merchants need to clearly state their business model (in this case – subscription-based one). They need to show what amount they are going to withdraw and on what date exactly (beginning, end of the month, or exactly on the purchase date). If the subscription price is about to change, merchants need to notify their clients about it.
Smart recurring billing is a developed form of recurring billing. Its main benefit lies in the multiple retry option for clients. This ensures customers do not get frustrated because of the failed transaction. This helps to lower the cart abandonment rate and retain customers.