Opt for ACH Payments for Your Subscription Business

Payments matter for every business, but for subscription businesses, payment processing is even more crucial. Why? Subscribers can be located anywhere. Subscription-based companies cater to local as well as international clients. When international transactions are to be processed, there is not just payment processing but tax compliance, currency changes, payment methods etc that needs to be taken care of.

Even if you opt for the best tech stack and the top payment gateways, there can be anomalies and complexities.

Payment processing is so important because it is directly linked to the revenue stream. Subscription businesses need to predict their revenue so that they can plan their subscription plans and their pricing strategy accordingly. In this article, we will discuss why revenue predictability is important.

We—the team SusbcriptionFlow, are here with a solution for irregularities in online payments. You can try out B2B ACH payments. By debiting or crediting bank accounts, ACH payments (Automated Clearing House) provide businesses and individuals with a secure and effective way to transfer funds between bank accounts. This includes recurring payments like subscriptions.

Let us take you its details.

Understanding ACH Payments

Payroll processing, bill payment, subscription billing, and direct deposit are all frequent uses of ACH payments. They provide a simple and dependable means of conducting financial transactions and serve as a cost-effective replacement for conventional paper checks.

ACH payments are preferred across the US because they ensure efficient transfer of money and they are processed through Automated Clearing House which is a computer-based network to transfer money.

The Importance of Revenue Predictability

Revenue predictability is crucial for subscription businesses because it not only increases their revenue and turnover but also brings in more benefits.

When revenue is predictable, the confidence of investors and stakeholders increases in the product or services. They would be willing to invest even in the future. They can better gauge the company’s financial health and prospects.
Revenue predictability helps in improving the pricing plans that you offer your subscribers. Also, you can price your add-ons so that the revenue stream can be diversified.
The future business plans and strategies also depend on revenue predictability.
You can plan better for events and sales. For instance, on Christmas, eCommerce businesses can monitor their sales and revenue. This monitoring of data shows how much they got in the revenue stream. Based on this, they can set targets for the future.
For effective resource allocation, revenue predictability plays a role.

How B2B ACH Payment Processing Increases Revenue Predictability

Coming towards the point that ACH payments can be a way to increase revenue predictability for subscription businesses. Here’s how:

Consistency

Because money is transferred on scheduled dates, ACH payments guarantee revenue constancy. This consistent schedule lowers financial uncertainty by enabling firms to precisely anticipate and arrange for incoming payments.

Reduction in Failed Payments

Sometimes, payment gateways are down and payments are not processed. This is called payment failure. For subscription businesses, this payment failure because of technical reasons can cause customer churn. Customers don’t like that they are willing to pay, but the system doesn’t allow them. Many retailers are offering the same products and services. The door to cancel subscriptions and subscribe to some other service provider is always open for them. However, ACH minimizes the risk of failed transactions, reducing revenue fluctuations.

Improved Customer Retention Rate

Predictable billing schedules reduce customer churn, leading to a more stable customer base. Seamless payment processing makes everything transparent. Due to this transparency, there are fewer payment cancellations because customers are less likely to be surprised by unforeseen charges. Businesses benefit from increased client retention as a result, retaining a more steady and devoted customer base that is essential for long-term success and consistent revenue.

Seamless Financial Operations

Payment processing is linked with different financial operations. ACH simplifies financial reconciliation and forecasting, enhancing financial predictability. As a result, businesses can maintain accurate financial records.

Payments Security & Trust

As a retailer in the subscription business market, you know the importance of customer trust. It helps you increase the retention rate. And payment processing is the point where you need to earn this trust. Customers want quick payment processing. Offer them ACH B2B payments processing. Because ACH payments are dependable, clients have more confidence in them, which increases the constancy of sales.

Payment processing is just one of the business processes for you, but for the customer, it is a complete experience. ACH payments help subscription retailers maximize this experience for customers. When customers are happy, they stay longer on board.

If you are looking for subscription management software for your business that will allow you ACH payments processing, then SubscriptionFlow is the one. Contact our experts now. Not only the ACH payments but we offer other payment methods as well. Schedule a demo to see the options that you can offer your end customers with SubscriptionFlow.