Web Hosting Talk : Web Hosting Main Forums : Running a Web Hosting Business : Recurrent Billing Authority

[Marcus]

Having spent quite a time researching into credit card payment systems online. I have come across quite a number of helpful hints for various case scenarios, except one. How do we get authorisation from a client for recurrent billing. eg a service subscription case.
People say for authorisation that has a hope in the legal world, that a form has to be faxed out to the client to authorise.
But how do we word a recurrent billing form...
'I authorise (company) to bill me for xx months till i ..
doesn't sound very convincing and there can be plenty of loopholes in this.
anyone have any idea where i can read up about Visa/Mcard policies on recurrent billing Please post me a link.

[Travis]

Talk to your merchant account provider to be sure, but:

AFAIK, you just need a signed piece of paper stating that the customer authorizes a charge of $XXX per month until they state otherwise.

It's important to state the actual amount on the authorization.

[Walter]

If you want a sample take a look at http://www.revecom.com
at their demo account you can see this.

[Jaiem]

A signed paper helps but as long as you clearly state monthly (or whenever) billing and they agree when they sign up that's what most companies go with.

[Marcus]

thanks everyone. thats a great help.
especially regarding revecom.com link. Got a few details there.
PS anyone know any links for visa/mcard policies. Not heard anything about that one.

[Marcus]

i finally got a client who did a chargeback after sending in a signed document. so i sent the document to our bank, to get a reply that he is still disputing the transactions. what am i supposed to do next.
I have sent in more information, but i think the best move would be to contact the issuer bank. what do you think?

[Jaiem]

A signed paper is just a defense for the merchant, not a "Get Out of Jail FREE" card. Businesses of all types are full of cases of people signing authorizations and releases up the waz-zoo then disputing what happens.

It's bound to happen sooner or later. Feels bad but life goes on.....

[Phoenix]

We use a paper credit card authorization form to cut down on fraud and ours is pretty basic. It includes the option for credit-card autopay:

Automatic Payment (optional):

I would like to automatically pay for my X service each month with the credit card (Please enter your initials)

And then in a lower section:
In addition, if I have initialed the automatic payment section above, I authorize The X Corporation to charge my card during the first week of each month for all fees due that month for the services I have subscribed to, until I notify them otherwise in writing. I understand that the fees due will include the regular monthly fees for that month, and may include additional usage fees from the previous month.
I also understand that the first charge placed on my card will include the balance already due on my account, if any.

[Jaiem]

Realistically, how many people really wait to receive the form, sign it, and send it back (in a timely manner) before they get their hosting account?

I agree it's a good way to protect yourself but it seems you'll loose many customers too.

[kaz]

revecom charge $1 per transaction.. , what if it is decline transaction.. will it still charge $1? or it will charge $1 after a successful transaction?

[akashik]

kaz,

a transaction only goes through if it's accepted. It's either accepted, or pending. If declined, it's just voided without a charge made.

The only problem I see is when it comes to refunds. As it's an accepted transaction, the process has been made so you'll be out for the $1. That's not really uncommon anywhere though, and as long as refunds are rare it's not much of a problem, considering the convenience of the service

Chargebacks are the evil of cc processing, but it's my understanding this is something the cc companies enforce rather than the billing provider. They just need to pass it onto the end user or they have to wear it. It's an annoying fact of life but understandable from the billing companies point of view.

[Marcus]

if the merchant facility provider(or billing provider) doesn't agree to send you signed documentation through to the issuing bank saying "since its an online transaction, and has no signature, it won't win!!" what do i do with them. Leaving them isn't the answer cos We have been with them a long time. But can i point out to them somewhere where they understand that the actually owe this duty to us?

[Fremont Servers]

iBill.com is good, but they charge 15%.