Many years ago, business entities sold products or services on credit. At the end of the billing cycle, the entity sent an invoice to each credit customer, and the customer returned the invoice with the payment enclosed. Recurring billing and payment cycles were costly.
Express Merchant Accounts (EMS) provides automated recurring billing that uses cutting-edge technology. After a merchant’s account is set up, their clients are automatically billed. When their customers pay their accounts, the money is transferred into the merchant’s account. Methods of recurring processing recurring payments are as follows:
Online payments may be made on any website that accepts credit cards, debit cards or electronic funds transfers (ETF). The customer establishes an online account that contains the name, address, email address and phone number.
Also, the customer may choose a payment method to be saved on the website. Account numbers, routing numbers, expiration dates and other information needed for the business entity to access the payment method.
By using the same payment method, the customer saves time because all of the information needed for billing and shipping is automatically inserted.
Online Payment Processing
When a credit card is used, the card is verified through the credit card network and the issuing bank. The purchase may be authorized or rejected due to credit limits or expiration date.
Payments from Bank Accounts
Payments made from bank accounts are routed through the Automated Clearing House Network.
Debit Card Payments
Debit cards are verified by PIN numbers or signatures. When the card is used, the information is transmitted to the card network and directly to the bank.
Credit Card Processing
- Cardholders make purchases throughout the month.
- Cardholders notified of payment due.
- Cardholder makes online payment.
- The card company sends the payment request to its financial institution.
- The financial institution submits the request to the Automated Clearing House Network.
- Funds are transferred from customner’s account to credit card company’s account.