Recurring or subscription billing isn’t just for health clubs, day care centers, or curated pet websites anymore. These days, every merchant service provider worth their salt is also offering this model to a host of other business types, including online gaming companies.
Before you choose to jump on the bandwagon and incorporate it into your virtual casino or sports betting site, however, take a few minutes to learn how this model can solidify your payments structure and simultaneously delight and attract customers.
Recurring billing defined.
As the name implies, recurring billing is a payment scheme that allows you to set up a regular arrangement with your customer.
Just agree on the credit card or bank account, the amount to be withdrawn, the frequency of the funds transfer, the date each week or month when it will occur, and the duration (12 months or open-ended, for example).
Once you configure your point of sale system correctly and both parties sign on the dotted line, you and your customer gain predictability, reduced late payments and no interruptions in service, among other advantages.
The complexities of the online gaming industry.
It is no wonder that the only type of merchant service provider who will partner with anyone in your industry falls into the high-risk business category.
That’s because online casinos and betting sites are subject to an ever-changing and sometimes bewildering set of federal and state regulations and age restrictions that require more time and oversight from payment processors.
Additionally, the industry can attract impulsive customers who quickly regret spending their money on your website, often resulting in a call to their credit card company disputing the charge.
How recurring billing can stabilize your business operations.
The subscription model removes a lot of the guesswork from the payments process. Since arrangements are agreed upon in advance, the likelihood of a funds dispute is greatly reduced.
Additionally, this model allows you to remain in ongoing communication with your subscribers.
More than simply informing them of upcoming payments or providing a thank-you confirmation message when the transaction has been processed, your point of sale system allows you to communicate customized messages that enable you to offer new features and products, convey discounts and promotions, and entice clients to explore more premium service tiers.
As a result, you not only have consistency with the in-flow of expected funds but also can motivate patrons to give you even more while simultaneously elevating their own gaming experience.
A word about dunning programs.
Although some business owners might think that recurring billing amounts to a set-it-and-forget-it solution, that is actually not the case.
You need to continue to be in touch with your customers for all manner of reasons, including providing payment announcements and receipts and updating people about policy changes, sales and promotions.
In addition, you must have procedures in place to address account and credit card closures and expirations.
This is where investing in dunning software can be so beneficial. These programs help you to keep track of your customers’ payment information and can be set to send out an alert if the patron needs to take actions such as updating account expiration dates or numbers.
They will also attempt several times to make a payment and then notify the customer that it has failed so that they can respond before their service is interrupted.
Recurring billing is a modern solution that can take much of the guesswork and human error away from your online gaming site.
Better still, this familiar subscription system can increase customer retention and satisfaction, leading to longer-term relationships with your most loyal players. If you haven’t already set up recurring billing, talk to your merchant service provider today to transform and streamline your business.
