According to a MasterCard study, two out of three users in America pay their bills using automatic payments.
Regular payments (or recurring payments) - automatic debiting of funds from a client's card according to a schedule determined by the client or the company. For example, monthly replenishment of a mobile phone on a specified date, payment of utilities, payment for hosting / Internet service providers or replenishment of various accounts. The service is already quite well known in Uanet, but even here there are subtleties in the implementation, as well as its pros and cons.
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Implementation details and advantages
For an online business, using regular payments can be equated to regular profits. The payment from the client arrives in due time, the share of lost profits decreases. But everything is not always so simple, since the specifics and requirements of the business are different and everything depends on the correct implementation of automatic payments. For example, setting up regular payments may be available only on the client side - this is acceptable for automatic replenishment of a mobile phone, but this option is not quite suitable for paying for services that may have different amounts to be paid.
It is
possible to make regular payments in the
WayForPay system
using the following options:
- Regular payments according to the client's schedule - the buyer himself can set up regular payments, specifying the necessary amount and period for making the payment (daily, weekly, monthly, etc.).
- Set up a regular payment on the seller’s side - regular payments on an event (for example, when a certain amount on the account is reached on the client’s balance sheet). Also, the implementation of automatic payment of the sent debt: when a zero balance is reached, a client can automatically debit the funds on the client’s account.
- Regular payment on the side of the seller for a fixed amount - for example, if the service has a fixed cost per month, the specified amount will be automatically deducted upon the expiration of the period.
Regular payments are implemented in such a way that the seller can adjust the frequency and options for write-offs based on the specifics of the business. Also available is the ability to manage regular payments by the client in your account.
In addition, with the help of regular payments, the service provider can provide “credit access” to its client, which is quite relevant for Internet service providers. Before each withdrawal of money, the service informs the client about the forthcoming payment for the service, if with the next notification it is not possible to write off the payment, the provider will be able to block access to the Internet.
Of the benefits to buyers are timely bills paid, time savings and no inconvenience due to late payments. In Ukraine, the culture of paying all bills on time has not reached the proper level, since the “payment of bills” usually takes the last place among Ukrainian users. This optional can be a good motivation for a good habit of paying bills on time.
What are the disadvantages
Among the shortcomings for the buyer, you can only highlight the fact that with regular payments you do not always control your overall budget. For example, in America, there was a tendency that those who use automatic payments when paying for electricity often save energy less, because they do not follow payment orders.
The disadvantages for business are also the correctness of the implementation of regular payments, taking into account the needs of the client and business.
In any case, the correct approach to the implementation of automatic payment can bring benefits to both businesses and users.