Recurring Payment Gateway

Increasingly more and more businesses are opting for subscription based business models as they offer benefits for business and their customers alike. Customers get to benefit from flexible pay-as-you-go payments that not only gives them an option to try the product or service but also is easy on their pocket. On the other hand businesses benefit from improved cash flows and reduced customer drop-outs.

Making this business model possible is a recurring payment gateway that processes regular payments through credit cards or direct debits. Examples include - Amazon Payments (US), Braintree (US), SagePay (UK), Flo2Cash (Australia), CCAvenue (India) to name a few.

Businesses like setting up a recurring payments processor because they provide a seamless customer experience. A customer is not required to be reminded that his payment is due in coming days. The payment receiving process is automated and therefore reduces considerable administration time. Moreover the payments are received on time at a pre-set frequency, weekly, fortnightly, monthly enabling a business to cover its operation expenditures.

When it comes to choosing a recurring payment gateway, one should consider finding answers to the following questions:1. Does the payment gateway support all the currencies that you deal in?2. Is the gateway PCI-DSS compliant?3. Does it offer both credit card and direct debit payment options?4. Does it support your business model?5. How long it takes for funds to transfer in to your account?6. What is the fee structure, are their any hidden costs?7. Do they offer 24/7 support?8. What is the set-up time?

A typical recurring payment gateway will have three types of  prices/fees. Inquire about them . They are1. Initial set up price2. Price per month3. Transaction Fee