Managed recurring billing can be done through a shopping cart, management software, online payment processing, or a payment gateway service provider. This article offers tips on the best way to manage recurring billing and the types of businesses that may wish to consider recurrent billing.

Web host resellers, e-merchants who offer premium content subscriptions, those who collect dues or fees or donations on a regular basis, and anyone else who offers a product or service or membership on a monthly basis can benefit from a managed recurrent billing solution.

Managed recurrent billing (also called “recurring billing” and Automated Recurring Billing or ARB) is available through shopping carts, through client management software, through online payment processing services, and through payment gateway service providers. As you choose a solution, keep in mind where the credit card information will be stored so that PCI compliance can be maintained.    PCI compliance means that the standards created by the Payment Card Industry Security Standards Council (PCI SSC) are followed to secure the data involved in credit transactions.

Let’s look at some examples of how managed recurrent billing can be handled.

Managed Recurring Billing Through a Shopping Cart

There are shopping carts with modules or plug-ins that allow this functionality by storing customers’ credit card information and rebilling them each month, but these need to be checked thoroughly before you decide to use them. The Payment Card Industry Data Security Standards for encryption must be met to legally store this client information, and this may not be the case with this type of solution. Ask the hard questions before using this type of solution for managed recurrent billing.

Managed Recurring Billing Through a Client Management Software

QuickBooks takes a different approach to managed recurrent billing by cueing the business owner to rebill using the ‘Memorize Invoice’ function, found in the ‘Edit’ menu. The business owner is reminded of the recurrent payment, monthly or quarterly or however often the billing is due to happen and then can generate a new invoice.

Managed Recurring Billing Through an Online Payment Processing Service

Both PayPal and Google Checkout offer mechanisms to provide subscription and recurring payment services. This service allows e-merchants to accept both credit card and bank account payments without having to send invoices and provides detailed records of transactions. More information about the PayPal service can be found here https://www.paypal.com/pdn-recurring More information about the Google Checkout implementation of this functionality can be found here: http://code.google.com/apis/checkout/developer/Google_Checkout_Beta_Subscriptions.html Both systems provide modification and cancelling of subscriptions.

Managed Recurring Billing Through a Payment Gateway Service Provider

Authorize.net offers Automated Recurring Billing (ARB) as an add-on to its merchant services. Unless there are changes to the account, the work ends with the set-up, and Authorize.net does not charge additional transaction fees for accounts handled through this mechanism. Features include the ability to customize pricing and trial periods. More information and video demos are available here:http://www.authorize.net/solutions/merchantsolutions/merchantservices/automatedrecurringbilling/