Recurring Payments

Many consumers are looking for ways to make paying bills more convenient. According to 2005 MasterCard Worldwide research*, automatic bill payment has become a leading method for paying recurring bills. The research also reveals that 46% of consumers with recurring bills would switch service providers if a competitor offered a recurring payment option by credit card or debit card, all other factors being equal.

If you bill your customers or collect payments on a regular basis, a card-based recurring payment program can help enhance these relationships.

Note: MasterCard has prepared this information as an overview of recurring payment transactions. The information is based on a variety of research projects conducted by MasterCard.

With recurring payments, the consumer authorizes a merchant or service provider to bill a specific card on a regular basis (e.g., monthly, quarterly or annually). Payment amounts can be fixed or fluctuate, and a payment agreement can exist indefinitely.

MasterCard continually seeks input from consumers so that we can offer payment solutions that meet their needs. Recent research* shows that two out of three U.S. consumers pay one or more recurring bills automatically via credit or debit card or some other method. In addition, 47% of credit card owners and more than half of debit card owners said they would consider adopting or using additional recurring payments by credit card or debit card, respectively.

• Satisfy demand for payment card options
• Increase enrollment in e-billing
• Reduce payment-related customer service calls
• Improve cash flow and reduce exposure to lost payments and bad checks
• Reduce delinquencies
• Improve collections
• Increase customer retention

• Convenience of setting up account payments once. It's fast, easy and saves time
• Time savings from writing fewer checks
• Relief from stress, knowing bills are paid on time
• Cost savings on postage
• Earning points/frequent flyer miles in eligible rewards programs

MasterCard is dedicated to providing the programs and services that make a difference to your business. Here are the facts, the support, and the tools you need to succeed.

If you already accept MasterCard for payment, contact your acquirer (i.e. merchant bank) to see how easy it is to start receiving recurring payments from your customers. Your acquirer has all the information you need to get started.

For cable, insurance, telecommunications and utilities service providers, the Service Industries Incentive Program (SIIP) provides a lower interchange rate on qualifying recurring payment transactions.

MasterCard offers the Automatic Billing Updater to help you maximize the growth opportunity for recurring payments. The Updater filters critical data (e.g., new expiration dates) from participating card issuers to registered service providers through the provider’s acquiring bank. Download the Automatic Billing Updater brochure Now
With our online Service Provider Directory, customers can connect to you when you offer one-time or recurring payments using MasterCard. This directory provides exposure for your company and participation is FREE!

MasterCard offers turnkey marketing support to help you build awareness and educate your customers about recurring payments. Our Selling Recurring Payments to Your Customers brochure explains how to target customers, offer incentives, and build relationships with recurring payment customers. You can order a copy of the brochure online.

Contact your financial institution for more information on accepting MasterCard, starting a recurring payments program, or enhancing your current program.

Learn How to Set Up a Merchant Account Download the MasterCard Recurring Payments 2005—Awareness, Behavior & Attitude Research Brochure, Revealing Attitudes Download the brochure Bill Payment for Service Industries Download desktop-ready print files for customizing your own statement inserts Download the brochure Selling Recurring Payments to Your Customers Now Visit the MasterCard Online Service Provider Directory Download the Recurring Payments Cancellation Service Brochure Now