High risk recurring payments

Recurring payments processing

Recurring payments or recurring billing is a method of payment when the cardholder is automatically charged on weekly, monthly or early basis, depends on the prearranged schedule, by the merchant for any service or subscription that the clients uses repeatedly.

Recurrent payment processing is a perfect option to not only collect regular payments but also avoid its delays. This method of billing is very common among online subscription businesses where the physical presence of the client is not required.

Recurring payments for business

Recurring payment processing is mostly used by the companies whose business model involves regular billing management, subscription or any other kind of on-going payments. The schedule and the frequency of payments for recurring payments can be set in accordance with the needs of the business: daily, biweekly, monthly, quarterly, semi-annually, annually and biannually.

Business models that use recurring payments

• Online commercial activities that require subscriptions. 
• Donations
• Club membership programs
• Renewal of insurance policies
• Fixed telephone plans
• Call centers

How does payment gateway for recurring payments work? 

The operative of payment gateway for recurring payments is quite easy once you understand the process and connection between the cardholder, acquiring bank and the merchant. Please follow the steps described below to see how payment gateway for recurring payments works. 

• Step one: The client decides to subscribe for a service and accepts to pay for it on monthly basis. Therefore, he approves a monthly charge on his credit or debit card for a certain amount and period of time.    
• Step two: The merchant or, so called, user of the payment gateway logs into his panel of control and introduces all the information provided by the client: card number, expiry date, CVC code, frequency with which the recurring payment will be made (daily, weekly, monthly or annual), due amount and the date of the last recurring payment.
• Step three: Once the payment gateway has recollected all the necessary information, he sends it through encrypted code to the acquiring bank. 
• Step four: The acquiring bank detects the request and connects with the network of the debit or credit card brand (Visa, MasterCard, Amex…) used in the operation. For recurring payments, this process is repeated monthly. Which means that each month, on the due date of a payment, the acquiring bank connects with the debit or credit card brand in order to obtain the confirmation of sufficiency of funds.
• Step five: Visa or MasterCard, in its turn, verifies with the bank that has issued a card if the client has sufficient funds to carry out the transaction and communicates it to the issuing bank. Again, this process is repeated monthly.  
• Step six: The issuing bank verifies if the card and the bank account of the client have any limitations or restrictions and is eligible to carry out the payment. Once checked the issuing bank confirms if the operation is authorized or not. The payment gateway receives this authorization code.
• Step eight: If the payment has been authorized, the acquiring bank transfers the amount paid to the bank account of the merchant. 

Commissions for high risk Recurring payments processing

* The activation of the high-risk recurrent payments Virtual POS is a one-time payment. No further monthly or annual maintenance fees are required. 

* The prices can vary depending on the commercial activity of the client and the level of risk his business involves. For any questions, please, contact us via e-mail, chat or by phone.