Best Automated Payment Solutions for Small Businesses

Set up automated payments with Helcim.

What is an Automatic Payment?

An automatic payment is a recurring, scheduled transaction that automatically deducts funds from a customer’s bank account or card to cover regular bills. This automated process eliminates the need for customers to remember payment deadlines and reduces missed payments for businesses. Examples of automatic payments include meal subscriptions, like Hello Fresh, or monthly utility bills.

Available Payment Methods for Automatic Bill Payments

There are multiple payment options for automatic bill payments, including credit cards, debit cards, and direct bank account transfers (ACH payments). Many businesses also accept digital wallet payments such as Apple Pay, catering to customers who prefer contactless payment options.

For example, imagine a monthly subscription box service offering various payment methods. Some subscribers may opt for credit or debit card payments, while others prefer ACH or Apple Pay for convenience. Offering multiple options can enhance customer satisfaction, streamline payments, and increase predictable revenue.

How Do Automatic Bill Payments Work?

Setting up automatic bill payments is a simple process when using a payment processing system that supports this feature. Once customers agree, they provide their payment information—such as credit card numbers, bank account details, or digital wallet links. The system then schedules automatic charges on the agreed billing date, ensuring consistent, on-time payments.

How to Set Up Automatic Payments for Customers

Here’s a step-by-step guide to setting up automatic payments for your customers:

1. Choose a Payment ProcessorFirst, create a merchant account with a reliable payment processor that supports automatic payments. Be sure your payment processor offers recurring billing features.

   Pro Tip: Helcim supports recurring payments, with no additional subscription fees—charging only for processed transactions.

2. Create a Recurring Payment PlanIn your merchant account, set up a subscription plan that specifies payment frequency, pricing, and available payment methods.

3. Obtain Customer AuthorizationCustomers need to authorize the recurring payments. This is typically done by providing card or bank information or completing a Pre-Authorized Debit (PAD) agreement for ACH payments.

4. Store Payment Information SecurelyThe payment processor securely stores customer payment details, ready for automatic billing.

5. Process Recurring PaymentsWhen each payment is due, your system will automatically charge the saved payment method. If a payment fails, most processors offer Dunning Management, which retries the payment to minimize missed transactions.

Best Automated Payment Solutions for Small Businesses

Advantages

• Convenience: One of the best automated payment solutions is that they remove the need to send reminders or track overdue payments.

• Predictable Cash Flow: Recurring payments make cash flow more predictable, improving financial planning.

• Enhanced Customer Loyalty: Customers are less likely to cancel automatic payments since they are consistently handled for them.

  Example: If you manage a local gym, automatic payments help eliminate the need to chase members for overdue payments, providing reliable revenue without the extra administrative work.

Helcim's secure business payment solutions.

Disadvantages

• Customer Unawareness: Customers may forget about automatic charges, leading to unexpected fees.

• Complex Cancellations: Difficult cancellation processes can frustrate customers attempting to stop automatic payments.

• Security Concerns: Some customers may worry about payment security due to potential fraud risks.

To improve customer retention, ensure easy cancellation options and adaptable subscription policies.

Common Examples of Automatic Payments

Automatic payments are widely used for many common services, including monthly subscriptions like Netflix or cell phone bills. However, they can also apply to several unique business models:

1. Service Retainers Businesses providing ongoing services, such as legal, marketing, or IT support, can benefit from service retainers. Automatic payments enable recurring billing on an agreed schedule, helping businesses maintain steady cash flow and reducing collection efforts.

2. Payment Plans For high-value items or services, automatic payments allow customers to pay in installments. Automatic billing ensures each installment is processed on time, building client trust and improving payment reliability.

3. Memberships For businesses offering memberships, like gyms or co-working spaces, automatic billing supports continuous membership without manual invoicing, ensuring consistent revenue.

4. Subscriptions Automatic payments are essential for subscription-based businesses, such as software services or meal deliveries. These payments keep subscriptions active, promoting customer retention and a seamless user experience.

5. Donations Nonprofits benefit from recurring donations through automatic payments, allowing donors to support regularly, which ensures reliable funding.

Cost of Setting Up Automatic Payments

The cost to set up automatic payments varies by provider and service features. Key factors influencing merchant fees include payment methods, card types, and fee structures.

Most automatic payments are classified as card-not-present transactions, often resulting in online processing fees. For example, Helcim’s average fee for card-not-present processing is 2.33% + 25 cents per transaction, with no monthly or activation fees, providing a competitive alternative for small businesses.

Choosing the Best Automatic Payment Software

Choosing the right automatic payment software depends on your business needs. Look for a provider that offers scalable options beyond recurring payments. Unlike single-service tools like Chargebee, Helcim provides an integrated platform with payment terminals, virtual terminals, and automatic billing capabilities, ensuring business scalability.

FAQs About Automatic Payments

• Can Customers Cancel Automatic Payments? Yes, most systems allow customers to cancel automatic payments through their account settings or by contacting customer support. A simple cancellation process boosts customer satisfaction.

• What Payment Methods Are Available for Automatic Payments? Automatic payments can be made using credit cards, debit cards, bank accounts (ACH), and digital wallets like PayPal and Apple Pay. Offering a variety of payment methods simplifies the customer experience.

• Are Automatic Payments Secure? Automatic payments are generally secure with the proper security measures, such as CVV and address verification. Customers should monitor their accounts to catch any discrepancies.

• Can Automatic Payments Be Late? If payment information changes or a credit card expires, automatic payments can result in delays. Most systems include Dunning Management to alert customers of upcoming expirations and prevent missed payments.

Start Saving on Payment Processing with Helcim Today!

Helcim is trusted by thousands of businesses for its low fees, transparent pricing, and powerful payment solutions. If you're ready to simplify your payment process, reduce transaction costs, and secure every transaction, Helcim is your answer.

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• Save up to 30% on Processing Fees: Keep more of your revenue with Helcim’s competitive rates.

• Easy Automatic Payments: Set up recurring billing, streamline transactions, and manage payments effortlessly.

• Secure and Reliable: Get peace of mind with industry-leading security and compliance.

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