Subscription Billing And Multiple Payment Gateways Integration—What, Why, And How?

 

Online payment processing has proven as the catalyst that had fueled the growth of the eCommerce economy and made the subscription business an undeniable revenue growth opportunity with the ease, flexibility, simplicity, and speed to transfer funds from one account to another in no time.

Though, this ease of transferring the funds brought security risks and online payment fraud threats.

In the recurring billing and subscription businesses, payment security is the key concern.

Mitigation of the online payment risks and prevention of digital payment frauds is characterized by the advent of payment gateways.

Payment Gateways are an integral part of any subscription billing system. For businesses providing subscription services or products, setting up a payment gateway leverages online and instant recurring payments directly into the merchant accounts.

This article encompasses the subscription billing and payment gateways relation in terms f how it works, and how it supports the whole automated system of recurring invoicing, billing, and payments.

Recurring Payments in the Subscription Billing

In the subscription billing business, recurring payment refers to the payments merchants received directly into their accounts as a result of the authorization of the payment deduction on a payment method provided by the customer.

These recurring payments can be made by a number of online payment methods that allow merchants to deduct the amount as per their subscription. Some of the leading online payment methods include:

• Credit Cards
• Debit Cards
• ACH Payments
• Digital Wallets or E-Wallets
• Wire Transfers
• Mobile Payment
• Many more

Under each payment method, you may find dozens of more payment options.

To process those recurring payments through the different payment methods, merchants need to find a solution that safely collects and stores the payment information and process with the payment processor after every interval whenever the recurring billing cycle hits.

The Role of Payment Gateways in the Recurring Payments

Payment gateways are used to encrypt and secure the payment information to send it to the payment processors to process the online payments. Some payment gateways work as payment processors and facilitate customers with merchant accounts that are not associated with any formal financial institutions. These are called payment aggregators.

But, all payment gateways don't support all payment methods.

Some payment methods facilitate certain currencies in specific regions, some do not cater to digital currencies, whereas some offer support to cryptocurrency. No single payment methods can serve it all.

The appropriate way to ease a wide range of customers is to offer more payment options supported by multiple payment gateways.

Customers using multiple payment methods can select their mode of payment and authorize the merchant to auto to deduct recurring payments for their subscriptions

Multiple Payment Gateways Integration

The integration of payment gateways starts when the merchant subscribes to a subscription management software to automate recurring billing and payments processing, automatically into their accounts.

Considering the convenience of the customer or merchants, two or more than two payment gateways can be integrated into a subscription software.

A payment gateway can also be chosen for any other reason like payment processing support for a specific region or a particular type of industry, security, etc.

The payment gateways allow merchants to collect the payment method details from the customers, encrypt, and store them securely to make recurring payment transactions, later, without seeking further authorization from them.