This form of billing generates security and ensures greater stability to the company, since it allows revenue predictability.

What is Recurring Billing  

Recurring billing is a payment model that occurs in the case of the purchase of a continuous service, where there is a subscription or monthly fee.

This type of payment is usually characterized as having no end date, ie as long as the service continues to be provided, the consumer continues to pay.

In this type of contract, determining how long this agreement will last can vary.

In most cases, a minimum time is established and, if the service is canceled before the end of this period, the client must pay a fine for termination.

If formerly the recurring billing used to be used only by service providers, such as schools, telecommunications, magazines, among others, the advantages of its business model ended up drawing the attention of those who sell products as well.

Amazon, for example, used recurring payments to encourage consumers to create a buying pattern.

If the customer usually buys a hair cream, for example, he can schedule the purchase of that product monthly, and the charge is made through recurring billing.

In addition to making life easier for consumers, this payment system contributes to user retention and billing growth.

How Recurring Billing works

When buying a product or purchasing a service, the normal thing is to pay for it at the time of purchase.

However, when signing a service contract, the customer agrees to pay a monthly fee and agrees that the amount be paid at regular intervals of time.

To understand better, here’s a step-by-step look at how recurring payments often work:

• the customer subscribes to or buys a product or service for an annual / monthly / weekly fee;
• the customer enters credit / debit card details when making the first payment;
• the details are saved for the next purchase;
• when it comes time to renew the purchase, the money is automatically debited from the customer’s account.

As we have explained, this is done automatically at regular intervals. The customer does not have to do the entire purchase process again.

Who can use Recurring Billing

Recurrent billing is a great way to keep income flowing. However, it is important to make sure that this plan is suitable for your business model.

Signature plans are not always easy to build. Depending on the segment in which you operate, you need to customize your product / service and form of payment according to the customer’s needs.

Although it is commonly used in the case of utilities-based products or services, recurring billing can be applied literally to any business idea. Check out five examples below.

• SaaS – Software as a Service: recurring payment is already quite popular in SaaS businesses. Companies like Adobe and Microsoft market their products in exchange for payment of an annual fee.
• Content: buy articles for blog, newsletter, etc? Do you pay for exclusive content on a magazine or website? Subscribe to Netflix, Hulu or Amazon Prime? All these services work through recurring billing.
• Products: from hair creams to razor blades, the purchase of recurring products through a signature plan has already fallen into consumer tastes.  
• Rentals: if you are in the rental business, you can allow a customer to use a product / service for a certain amount of time in exchange for a periodic fee, such as a hotel room or car, for example.
• Affiliate sales programs: this is a slightly different form of subscription plan, in which you are usually a reseller of a service or product and in return receive a commission for each sale / customer added to the affiliated company.

– Why to invest in a Loyalty Customer Program

With subscription services and recurring billing gaining space in the most diverse segments, it’s time to learn a little more about its advantages and how to implement it.

Advantages of Recurring Billing

Consumers no longer want the burden of ownership, but want the immediacy of results.

Signature services are also nothing new. Pymnts.com reminds us that “there is a reason why the tallest building in all cities is an insurance building.”

One simple reason for this type of billing to be so popular is that it is a beneficial option for both business and consumer.

Advantages for companies

There are many advantages to recurring billing for companies, such as:

1. Reduces missed or late payments

In addition to the possible loss of revenue, the administrative costs associated with collecting defaulters decrease, giving companies a double win.

2. Improve customer relationship

With payment being made on a recurring and automatic basis, you can focus on having positive interactions with your customers, focusing on increasing sales.

3. Security

Between PCI compliance and tokens used by payment gateways, the company has confidence about the security of its customers’ data.

4. Enhance customer experience

When set up correctly, a recurring billing system has a simple to use and interface. In addition to making life easier for consumers, this increases the conversions and chances of free promotion because people like to share positive experiences.

5. Enables flexibility

Due to the simplicity of subscription, most software allows you to offer promotions for new users and makes it easy for subscribing customers to change their plans.

6. Increase customer retention

Given the set-and-forget nature of recurring billing, the charge is made periodically without the customer even thinking about it, which reduces the likelihood of repentance and cancellation of the subscription.

– How to retain customers

Advantages for customers

Regarding the advantages that this type of payment brings to customers, we can highlight:

1. More options

Having the option to choose between different subscription plans allows consumers to make a decision based on their budget and needs. This power of choice and control makes customers more comfortable and inspires a positive feeling about the company.

2. Better utilization

Payment automation allows the consumer to enjoy their purchase without worrying or even remembering accounts payable.

3. No use restrictions

The products/services acquired can be accessed when the customer wants, without time restriction. In some cases, the purchase is immediately available, which acts as a huge incentive in decision making.

4. Flexibility

Many recurring billing systems allow consumers to change their payment details, switch plans or simply end their subscription.

5. Ease of use

It is necessary for the customer to enter their payment data only once, which facilitates the whole process.

It is important to remember that the environment also benefits from this form of billing.

The recurring payment is done in an automated way and can be carried out totally online, eliminating the excessive use of paper, printing and invoice delivery.

Segments that benefit from Recurring Billing

Although industries such as streaming, insurance, telecommunications, and public services have implemented recurring billing systems with great success for years, for many other segments this is new.

Here are some types of businesses that started using recurring payments and are improving their results.

Retail

The retail industry is a clear target for subscription-based offerings. The fashion industry, for example, has begun to enter this market with box delivery.

Ranging from offering socks to full suits, companies hope to win loyal customers by ridding them of the hassle of having to decide what to wear and go out to shop.

Retail pet products have also grown as companies explore people’s willingness to dress and give their pets presents.

Fitness

Thanks to the incredible volume of fitness models and “influencers” in social media, the fitness industry has seen marketplace expand and solidify.

The continued pursuit of vitamins, supplements, special clothing, among others, expanded their recurring billing options that were previously restricted to gyms.

Monthly supplies of vitamins, protein powders, training videos and healthy diets are just the tip of the huge growth that the fitness industry is experiencing thanks to the recurring billing.

Food

Facility in the kitchen? Yes please! If before only delivery was the solution, now it can be practical in a slightly more personalized way.

Among organic growers who periodically deliver fresh vegetables and fruits in your home, to selected and hard-to-find foods on the market, everything is within a monthly fee reach.

Food signing services have come up and have risen sharply in recent times, making it easier to prepare and organize meals.

Online courses

The recurring billing in schools is nothing new. In fact, this is one of the first segments to use the monthly tuition system.

With the growth of online courses market and distance education, the whole process of teaching and learning was facilitated, and could not be different with the payment method.

Online course instructors can easily create subscription plans or tuition so that the student has unrestricted access to all of their content and receives news from time to time.

This brings great benefits to both parties, and it means stability for those who create and sell online courses.

– How to sell online courses

As long as you have an elearning platform like Coursify.me, which can manage user interactions, a payment gateway that offers multiple forms of payment, and an easy system for billing, recurring payment is the best way to reduce expenses and increase the profits.

With user friendly interface, Coursify.me facilitates and enhances the user experience, increasing your chances of getting more students.

– 5 tips to attract students

In addition, Coursify.me has integration with PagSeguro, PayPal and soon Stripe, allowing you to receive payment in the currency of your choice.

Ideal for those who want to sell courses online, the platform allows the receipt of payment in a single installment or recurring billing.

Present in more than 60 countries, Coursify.me is the perfect solution for you to start your own business without investing anything for it.

To learn more, visit our website, test the platform and understand why we are the best option for your business.

The post Recurring Billing: Benefits for your Online Course appeared first on Blog Coursify.me.

Necessary for those who want to make sales on the internet, let’s learn more about these services and what are the best options on the market today.

Quick Guide to Online Payment Systems

First of all, we’ve made a quick summary with some things you should know about online payment systems.

• A merchant account is a bank account that allows the customer to receive payments using credit or debit cards. Commercial suppliers are required to comply with regulations established by card associations. Many online payment processors act both as a merchant account and as a payment gateway.
• A payment gateway allows merchants to securely pass credit card information between customer / seller and between seller / payment processor. The payment gateway is the intermediary between the merchant and the bank.
• A payment processor is the company that a merchant uses to handle credit card transactions. Payment processors implement anti-fraud measures to ensure that the customer and the seller are protected.
•  Compliance with PCI is when a merchant or payment gateway sets up your payment environment in a way that meets the Payment Card Industry Data Security Standard (PCI DSS). The PCI DSS standard was created to increase the security of cardholder data and reduce fraud.

To better understand, let’s explain a little more about the differences between merchant account, gateway and online payment processor.

What is a merchant account?

A merchant account is essentially an agreement you make with the bank to create a space for pending transactions, that is, a place where the funds go before they are credited to your company’s bank account. 

The payment is temporarily held in the merchant’s account until the transaction is completed, at which point the money passes from that account to your company’s bank account.

It is different from a payment gateway because it does not transmit encrypted data, but the funds related to the transaction. 

To set up a merchant account, a payment processing company assigns you a merchant ID number. This identification number is linked to the merchant’s account, which maintains its funds until the settlement of a transaction. 

A merchant account is required to accept credit and debit card payments from your customers, unless you are operating as a submarket with a payment facilitator, such as PayPal, PagSeguro or Stripe. 

Therefore, although a merchant account is different from a payment gateway, it is generally essential to accept credit and debit card payments online and at points of sale.

– How to work from home and succeed

What is a payment gateway?

A payment gateway accepts online payment by credit card. It is a technology that creates a secure connection between your company’s website or browser and the credit card processing company. 

This secure connection is used to encrypt credit card payment data, verifying the authenticity of a transaction and keeping confidential information secure. 

In the modern world of digital business, the security of your customers’ financial information is of the utmost importance.

Typically, a VPN is used to add an extra layer of security. But a VPN concentrator is essential for network protection for medium to large businesses.

VPN concentrators provide centralized and secure entry points for multiple VPN connections, ensuring that customers’ financial information remains protected from potential cyber threats. By incorporating it into their network infrastructure, businesses can enhance the security of their customers’ data and safeguard against unauthorized access or data breaches.

An online payment gateway works during virtual transactions, encrypting credit card information as it enters its system at the time of purchase. 

The encrypted data is sent securely to the credit card processor, the card network, the bank that issued the card and your company’s bank.

As soon as the encrypted data is delivered, the customer’s card is charged at the appropriate amount for the transaction. The funds are delivered directly to your company’s bank account, less the fees and processing costs agreed with the credit card processor.

Make a note that not all payment gateways will directly deposit the money in your bank account. They will usually deposit it in a merchant provider account, before depositing it in yours. The payment gateway normally owns this account, but you can also have your own merchant account.

What is a payment processor?

A payment processor is the company that handles credit and debit card transactions for a company. 

If the payment gateway moves encrypted data, then the payment processor can move funds from one account to another.

Payment processors can be categorized into front-end and back-end processors. Front-end processors maintain connections to card networks and settlement services and manage merchant accounts on behalf of their customers. 

Back-end processors mainly settle transactions, moving money from the issuing bank (the customer’s account) to the commercial bank, which ultimately transfers the funds to the company’s bank account when the transaction is finalized.

Payment processors’ pricing and fee structures vary according to the quantity and value of transactions processed and the model chosen. 

Payment processors typically charge a percentage of each transaction, often adding a small fee per transaction as well, and some other charges, such as a monthly statement fee and an annual PCI compliance fee.

If you want to accept credit and debit card payments from your customer online, by phone or at the point of sale, you need to partner with a payment processor.

– How to make money online

Which online payment system to choose?

The provider you choose will depend on your needs, but we’ve listed what we consider to be the top three online payment systems today.

1. PayPal

With over 220 million active accounts, PayPal is the most widely used payment platform today. Founded in 1998, it allows you to make and receive payments worldwide.

PayPal provides payment processing services for e-commerce, auction sites and other commercial entities.

The platform allows you to accept credit cards, including Amex and Visa. It also offers easy cart integration, multiple customization options, online billing and facilitates credit card payments over the phone.

The price is competitive, with card processing charged at 2.9% per transaction, without monthly fees, making it ideal for establishments with lower sales volume.

2. Stripe

Stripe is another powerful online payment platform designed for businesses on the Internet, with the company claiming to handle billions of dollars in transactions annually.

The main difference between this service and many others is that it is not a ready-to-use solution. Instead, you get a variety of flexible tools to customize your own payment processes. 

Designed for larger companies, it offers a multitude of APIs that allow you to create your own subscription services, on-demand or crowdfunding platforms. 

In addition, Stripe supports more than 100 currencies and offers features such as mobile payments, subscription billing and one-click checkout. Users also have access to a dashboard where they can view transactions. 

Stripe offers a special advantage for merchants located in Europe, as processing fees for European cards are 1.4% + 20p per transaction. For non-European cards, processing fees are 2.9%, plus $ 0.30 per charge. In addition, for higher volume needs, it has a customized plan with volume discounts.

– Advantages of Stripe to sell courses online

3. PagSeguro

Another very famous company in this field is PagSeguro, one of the best examples of payment gateway available in the Brazilian market.

The company belongs to the Uol Group and serves physical establishments, virtual stores, Marketplaces, SaaS companies, etc.

PagSeguro was born digital and uses POS terminals mobile to serve the Individual Microentrepreneurs (MEI) market. As the vast majority of MEIs do not accept credit or debit cards as a means of payment, and as more than 80% do not have a bank account, banks and accreditors have never paid attention to this segment.

By offering the possibility to purchase its own terminals (card machines) combined with a payment account, PagSeguro managed to grow rapidly in this segment, with a level of loyalty never seen before. Over 70% of PagSeguro’s customers are active monthly.

The tool acts as an online payment platform for both sides: buyers and sellers. Its interface provides an environment in which the buyer can register and place his payment information securely, while for sellers there is a dashboard to register financial information, manage sales and amounts received.

The company also bridges the gap between the seller and all banking institutions, offering various forms of payment to the customer, such as credit card, billet, bank transfer or balance transfer from PagSeguro itself.

– How PagSeguro works

Sell ​​your online courses with Coursify.me

The online payment system can make a big difference in your company’s revenue and customer satisfaction. However, it is important to investigate the market thoroughly to ensure that you choose the right option for your business. 

This decision depends a lot on the type of business you run, the volume and value of your typical transactions. 

Understanding the difference between payment processors, payment gateways and merchant accounts is the first step in making your buying and selling journey less complicated.

– How to sell online courses

Complete eLearning platform, Coursify.me has integration with PagSeguro, PayPal and Stripe, allowing you to receive payment in the currency of your choice.

Simple to use, your students can pay online easily, securely and from any location.

To make it even easier for our customers, Coursify.me allows the integration of your online school with all three payment platforms, increasing the range of options for you and your students.

Ideal solution to create, sell and advertise courses on the internet, visit our website, test the platform and learn why we are the best option for you to sell more online courses.

The post Discover the best online payment platforms for your business appeared first on Blog Coursify.me.

Stripe: history

Who performs some kind of commercial transaction over the internet needs to use the services of a payment processor to be able to carry out this operation.

Created in 2010, Stripe is a payment gateway that quickly became known as a well-crafted and simple-to-use solution.

Considered the “PayPal of the mobile era,” the platform allows individuals and companies to accept payments over the internet.

With a discreet profile, the Stripe was created by two Irish brothers, Patrick and John Collison, who decided to found the company because they were frustrated with the existing online payment systems.

– How to make money online

In 2007, the brothers had a funding request declined by Enterprise Ireland, so they decided to go to Silicon Valley, where they merged with Y Combinator and formed the Auctomatic.

Auctomatic was responsible for creating tools for eBay and in 2008 it was purchased for $ 5 million. At that time John Collison was 17 years old.

So, in 2010, the brothers founded Stripe. In a short time, the startup caught the attention and received investments of names such as Sequoia Capital, Andrew Horiwitz, Peter Thiel, Elon Musk and Max Levchin.

Today Stripe is worth over $ 9 billion, and is used by more than 100,000 companies, including Kickstarter, Slack, Lyft, Adidas, Under Armor, OpenTable, Best Buy, InstaCart, Docker, HubSpot, Unicef, NPR and Khan Academy.

Stripe: who can use

Relatively new company, and disputing market with PayPal, a well-established payment processor, you must be asking yourself: what is special about Stripe?

The answer is simple: easy integration. As the company itself says, “We believe payments are a problem rooted in the code, not in finance.”

Focusing on facilitating business between online companies, the platform is widely used by developers seeking easy integration with other sites.

The developer resources the company offers exceed any other platform on the market.

Whether you are a SaaS owner who needs to charge a subscription, or a marketplace looking for an easy way to split payments, or an online retailer that wants to facilitate and increase mobile payments, Stripe has a solution for you.

Easy to use and resource-packed, Stripe has powerful tools for marketplaces, e-commerces, SaaS, and developers.

Stripe: how it works

The basic tools offered are deceptively simple, so you discover resources you never imagined existed.

Everything is divided into two categories:

Payment Processing

Stripe offers instant access to processing, just like PayPal.

The company approves your registration almost instantly and scans your account more closely as you continue to do business.

Its services are available in 25 countries at the moment, but the platform accepts payment in more than 100 currency.

Developer Tools

This is the part that most users really care about.

Its APIs provide a solid and well-crafted framework for developers to quickly and easily integrate the platform using a variety of languages ​​(curl, Ruby, Python, PHP, Java, Node, etc.).

This creates a solid foundation for developing and expanding your business, and Stripe constantly updates its resources and documentation.

Here are some features offered:

• Checkout: Prevents you from creating forms and payment streams from scratch, but also allows for a high level of customization.
• Mobile integration: Provides documentation for Android or iOS to power in-app payments. There’s also the one-touch solution that allows users to save their data for faster purchases next time.
• Marketplace solutions: A wealth of tools to help you direct your payments to your vendors, including instant deposits.
• Subscription solutions: unlimited options for subscription plans. You can even enroll unique users in various types of plans.
• Free coupons and trials: easy-to-use marketing tools. Attract potential customers by offering a free trial period or a special offer.
• Teams: divide your employees into teams and assign permission levels to them. This helps keep your data safe.
• Stripe Connect: a set of tools designed specifically for marketplaces. Stripe supports over 100 currencies and automatically converts them. You can also use Connect to check international sellers, add text that appears on credit card statements, automate payments, or create a custom payment schedule.
• Stripe Atlas: Atlas allows international companies to join the US, create a bank account in the country and obtain tax and legal guidance. Stripe says it already has more than 1,000 startups in more than 120 countries and has already added more than 100 partners to its network since launch.
• Stripe Radar: Stripe solution for e-commerce fraud. Radar uses machine learning to identify and stop credit card fraud. It also provides tools for marketers to define transaction-specific rules, test the impact of those rules, and reduce the amount of manual labor their team needs to complete.
• Stripe Relay: allows you to boost purchases in mobile applications. Relay features enable marketers to link their e-commerce catalogs to your application or directly upload product information. It creates in-app purchase buttons and forwards all sales information to merchants to fulfill the order.

If you want to use Stripe without getting involved with the developer tools, consider using a Stripe plugin for WordPress, Magento or Drupal.

You can also take advantage of the services that allow the simple integration of Stripe for e-commerce.

Some integration providers include BigCommerce, Shopify, Squarespace, Big Cartel, Stitch, Harvest, Weebly and many others.

Stripe: advantages

If you are still not convinced about using Stripe, here are some more advantages that the platform offers for your business.

Easy integration

The first great advantage of the gateway is the easy integration of your payment system in different environments and platforms.

Programmers just need to copy and paste the lines of code from the solution that best fits your business, and within minutes, the system is ready for use.

User Experience

Unlike other processors, when using Stripe, your customers are not redirected to an external portal.

Everything is done inside your website, which ensures complete control over the whole process. This helps improve the user experience around each customer’s brand and not around the Stripe brand.

Security

Stripe is a Level 1 compliant PCI service, which is the highest level of security certification.

Also, if you decide to leave Stripe, it will help you export all the data from the card to a new PCI-compliant provider. This is a great deal.

Fixed rate

For each successful transaction, the platform charges only a single flat rate: 2.9% + $ 0.30.

The lack of monthly fees particularly favors small and medium-sized business.

Varied forms of payment

The gateway accepts credit cards, debit cards, ACH transactions (direct deposit) and Bitcoin. You will pay only 0.8% for each transaction, up to a maximum of $ 5.

Stripe recently launched a micropayment plan for digital products (less than ten dollars), for which it maintains the same flat rate.

Accepts multiple currencies

Merchants can display prices in multiple local currencies instead of just one. Stripe automatically converts them to you.

Generally speaking, there are no exchange rates, only the conversion rate.

Technical support

Stripe has customer service and support via email, social media, and also has an IRC channel (#stripe on Freenode) where programmers can chat and get help online.

You can follow the company on Facebook, Twitter and LinkedIn and get updates on the Stripe services via Twitter.

Why use Stripe for your online courses

Modern platform, which values ​​the ease of use, without a doubt this is a great option for online payment.

For those who sell online courses, it is important to make the most of the options available to your customers, favoring the one that is simpler to use.

– How to sell online courses

Important to remember that your students do not need to have a Stripe account. To make the payment they only need a credit or debit card.

For you, Stripe means the end of wasted time by setting up an account and using a confusing payment gateway. Everything is up and running in five minutes or less.

Sellers do not have to call anyone, get in touch with the bank, and fill out endless forms. And to improve, the money can be deposited in any bank.

Not to mention you do not have to worry about monthly fees, installation fees, annual fees, transaction fees, etc.

Stripe is simple, intuitive and has a great support team. Your students are able to make the payment easily, safely and from any location.

Complete platform for hosting online courses, Coursify.me already has integration with PagSeguro and PayPal, and soon you will be adding Stripe as another advantage for our customers.

– How PagSeguro works

Present in more than 60 countries, Coursify.me is the ideal solution to create, sell and advertise courses on the internet without having to invest anything for it.

Visit our website, test the platform and know why we are the best option for your business.

The post Advantages of using Stripe for selling Online Courses appeared first on Blog Coursify.me.