Recurring Transactions or also said RTs payment segments are growing significantly. Young Entrepreneurs, New Businesses and even Large Scale businesses are moving to this business model and numbers of cardholders are being encouraged to use such businesses. It’s simple, now businesses can have ability to better forecast income. Also it offers simplicity to Cardholders using such businesses.
What are Recurring Transactions?
RTs are transactions where the cardholder consents to having their account charged on a pre-agreed condition once the cardholder has agreed; they can continue to receive the goods or services without having to worry about payments as this is taken care of by the merchant. Frequency, Amount and Time of the transaction can be now customized!
E.g. Your Favorite Magazine Subscription on your Credit Card is billed on a certain date and for a certain amount each month.
In this guide, we outline the Operating Regulations as by Visa as well as other recommended best practices
Understanding the RT Process and Risk Planning
- Cardholders to choose their preferred billing date, it will help ensure that funds are available.
- Inform the customer of the “Doing Business As” or “Descriptor “name, the name that will publish on the Cardholder’s bank statement. Make sure it’s easily recognizable when billed each incident.
- Estimated Delivery Date of goods or services be advised.
- Provide the customer with confirmation that an RT agreement has been entered into .
- Train your sales and customer service staff on the proper procedures for setting up and submitting RTs, as they are particularly customer service sensitive.
- Merchant Details must be clearly displayed at all time.
- Monitor the decline reasons and dates
- Include a CVV value in the First Authorization of a New Recurring Transaction and where available check the customer’s billing address by including Address Verification Data (AVS).
- Recurring eCommerce Transactions are highly recommend that merchants utilize Verified by Visa for the initial authentication of a new customer.
- Make sure to include and monitor Expiry Dates of the transactions.
With this guide we tried to cover the rules that need to be understood and useful guidance when accepting Recurring Transactions This will help ensure merchants and their customers enjoy a simple and efficient payment process, which is clearly understood by them and their customers. Read more and learn about trial continuity and subscription based businesses, best practices and latest eCommerce News.