In the US, approximately 11 million companies offer subscription-based services or products. And this business model continues to grow as consumers enjoy the convenience of having movies streamed directly to their living rooms, fresh meals delivered weekly to their homes and even kitty litter and dog toys dropped off monthly at their front door.
For these subscription-based businesses to be successful, they not only have to find creative ways to keep customers happy on a recurring basis, but also need AutoPay features that keep billing data secure and up-to-date. Businesses often must hire additional customer service agents or invest in costly security features to handle the amount of billing information they manage. For many subscription-based start-ups, these investments hinder their growth and profitability.
At GlobalOnePay, we offer a suite of tools for businesses who rely on recurring and subscription billing payments. The products we offer are affordable, simple to integrate and doesn’t require adding new staff or technology to your business. See for yourself the types of solutions we offer that gives subscription-based businesses and their customers multiple payment options and better security:
The toughest challenge subscription-based businesses face is ensuring that customer billing data is up-to-date. Businesses that collect payments on a weekly or monthly basis deal with a high rate of credit card declines, up to 15%, which can lead to thousands of dollars of revenues if not collected! To solve that problem, many businesses turn to costly 3rd party billing services or hire new staff to manually collect customer credit card data. What if there was a way to automate this process to reduce the number of declined credit card transactions? There is, with Auto Account Updater from GlobalOnePay. AAU simply works by updating information daily from your customers’ bank card provider (Visa & Mastercard) and transferring the information back into our system. The data collected is tokenized, so no sensitive information is passed through. You can collect payments without interference and your customers can continue to enjoy their monthly delivery of the products they love.
In the era of security breaches and fraud, businesses are having a tough time keeping up with all the tools and technology they need to invest in to keep customer data safe. This is why at GlobalOnePay we recommend adding secure card storage with tokenization. It works by simply storing your customers’ credit card data and security codes as encrypted tokens, hiding this sensitive information in your system so employees can’t access it along with fraudsters trying to breach your system. This solution reduces fraud liability and allows your customers to feel safe when they add their credit card to deduct payments monthly for your products and services.
The key to a successful subscription-based business is offering variety. What consumer likes the same meal delivered every week? Or similar content streaming on their mobile device? Which is why offering a variety of payment options for your customers is as important. Consumers are shifting more towards paying for subscription services with their checking account instead of a credit card because it doesn’t expire, is more secure and easier to manage. Businesses benefit with eCheck processing by receiving payments that clear quickly, offer lower processing fees and larger transaction limits. GlobalOnePay’s eCheck processing solution also offers variety for businesses by integrating this feature through a virtual terminal, API or a hosted payment page. Variety is the spice of life, so pepper your business with more payment options for your customers.
Shallana is currently the eMarketing Brand Manager for GlobalOnePay, a division of Pivotal Payments Inc. As an experienced marketer and writer, she wants to help eCommerce merchants navigate the complexity of the payments industry with simple tips, best practices and informative articles designed to help them grow domestically and internationally.