Recurrent payment in the literal translation from English means a regular payment – recurrent payment. That is, from a card or electronic wallet, money is periodically debited for a service or item in an automatic mode. Often, therefore, they are also called auto payments.
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In this article we will consider the advantages and disadvantages of this method of payment, as well as where it is most reliable to organize recurring payments for yourself.
Where are used
The need for regular periodic payment most often arises in the following cases:
- To use any applications or content. This may be software (for example, for internet marketing analytics), information in subscription publications, etc.
- Fee for operators – cellular, Internet service provider, etc.
- Repayment of the loan. Now there is no need to visit banks to pay the loan. A person is issued a special card from which money will be debited periodically. The main thing is not to forget to replenish it in time.
How do auto payments work?
The whole process consists of two stages:
- Design and registration template.
At the first stage, during the first (parent) payment, the system suggests making it regular. Usually, for this you need to click the “Create” button, an automatically-filled form will appear, where the payment amount will be indicated, where it will be transferred and the date of debiting. By clicking on the “Agree” button (“Issue”, etc.), a recurring payment will be issued. The user in the payment form can change the amount and date of debiting.
At the second stage, upon the due date for debiting, the system will automatically create a request to the issuing bank, which will indicate the name of the user, the card number from which the money should be debited, its validity period and the amount debited. If the data is valid (card number, name of its holder, validity period, and it is not expired) and the card contains the required amount (if the card is credit and even if it does not have the required amount, then the money will be debited from the overdraft), automatic debit cardholder participation. He will only receive a message on the messenger about the transaction (if such a service is configured).
Recurrent payments – advantages and disadvantages
The presence of a service such as recurring payments in many financial institutions clearly indicates that it is in demand. Indeed, car payment has a number of obvious advantages:
- Significantly reduces the risk of late payment. Modern man is very busy and forced to keep in mind dozens of deeds and responsibilities that he must perform. No wonder he sometimes forgets about some. As a result – the lack of communication, Internet, subscription, etc. More noticeable – delay in payment of the loan. In this case, a fine is charged. And in some banks, even for one day of delay, fines are simply draconian. Automatic payment setup solves this problem.
- Convenience. Having made an auto payment, you no longer need to enter again and again the necessary information for payment – card number, phone number, payment amount, name, etc. This saves you time and insures yourself against a possible mistake when filling out the payment form.
- Some services offer certain discounts when making recurring payments.
We will not write about frankly fraudulent activities. When a person is offered on a website in exchange for permission to download content, enter a phone number, supposedly to protect against bots. And then the user after a certain time notices that funds are debited from the balance of the phone. When it turns out, it turns out that a subscription was made and the site wrote about it, though in a microscopic font. Here we can only advise you to be careful when you are required to enter information in any way related to finances. If, nevertheless, auto payment was created without your knowledge, then there are several options:
- Go to your personal Internet banking account, see all the write-off operations and disable unnecessary ones.
- He will contact the issuing bank (if you do not have a personal account), inform him about the situation and demand that auto payment be turned off by writing a statement.
- Set a limit for withdrawing funds from a card for payments over the Internet.
- Block the card.
Now about the objective disadvantages of recurring payments:
- If the transfer is external (that is, the bank does not write off, for example, money for a loan, which it itself issued), then no debiting occurs on weekends and holidays.
- Technical malfunction in the system.
- You cannot stop recurring payments for a while, if necessary. You need to reset all the settings for this, and then create from scratch.
As you can see, recurring payments are a convenient financial tool that will significantly reduce the likelihood of late payments on loans, subscriptions, etc. It is only necessary to choose an organization that will reliably produce them in the currency you need.
Wellcoinpay recurring payments – securely and in any currency
If you have a need for auto payments, contact Wellcoinpay. Why us?
- Extensive experience in the financial services market. We currently operate in more than 180 countries (in fact, all over the world). We serve more than 200 companies, not counting individuals. We guarantee that there are no technical failures – your money will always come at the right time to the recipient.
- We work with more than 50 payment systems, more than 20 currencies. If it is convenient for you to give money in the form of Poison, WebMoney, Qiwi, PayPal, cryptocurrency, dollars, euros, British pounds, Japanese yens, Swiss francs, etc. – for us this is not a problem.
- Comprehensive financial services. In addition to recurring payments, we offer you:
- high-quality billing for your site to receive payments from any payment systems and currencies used in Ukraine, including cryptocurrencies;
Contact Wellcoinpay, a company that is known all over the world.