You are permitted to authorize recurring schedules that debit a credit card account by using a signed paper authorization form. The authorization requires that your customer understand the conditions under which the business is permitted to debit the account (such as amount, date, and frequency), as well as conditions for termination or change of the authorization.
Typical Uses: There are three typical uses for recurring credit card transactions:
Payments for the same amount on a regular schedule, such as weekly or monthly service fees.
Payments for a different amount on a regular schedule, such as utility bills.
Payment plans for discharging a large debt, such as installment payments on a large purchase.
Have your customer sign and date a form (see templates below) that includes the credit card account to be charged, how to terminate the schedule, and the information specified below for the type of recurring payment schedule:
Payments for the same amount on a regular schedule: Amount, frequency, and start date.
Payments for a different (variable) amount on a regular schedule: Frequency, start date, not to exceed amount.
Payment plans for discharging a large debt: Total due, # of payments, amount of payment, frequency, start date.
Give your customer a copy of the signed form.
Keep this form on file, stored digitally or in paper form, for one year after the last payment on the schedule.
Mail or email notification to your customer at least 10 days in advance of any change to the schedule amount or frequency.
What ReceivablesPro Does
For You:
When you check the “Send a receipt to the customer” checkbox in
the TRANSACTION RECEIPTS section
of the Settings--> Configuration-->
Email Preferences and Templates screen, and also check the
"Send notification to the customer" box in the RECURRING
PAYMENT REMINDERS section on the same screen, the system will
automatically send all required emails to your customers (steps 4 and
5 above) for all ReceivablesPro
schedules.
Additional
Recommendation:
Send a pre-notification email to your customer prior to the date the scheduled
payment is processed. The default setting for pre-notification emails
is “on” with the pre-notification sent 1 day prior to the payment date.
You can change this on a global basis in the Settings-->
Configuration--> Email Preferences and Templates screen.
Select the “No” radio button for pre-notifications if you don’t want to
send it. Or, change the number of days prior (choose from 1 to 10 days)
that the pre-notification email is sent. You can also make this change
on a case-by-case basis for each individual recurring payment schedule
when you create it.
Credit
Card Recurring Payment Authorization Form-Open
Use this form to authorize the SAME amount each time with
an OPEN end date.
Credit
Card Recurring Payment Authorization Form-SET
Use this form to authorize the SAME amount each time with
a SET end date.
Credit
Card Recurring Payment Authorization Form-Variable
Use this form to authorize a DIFFERENT amount each time,
with an OPEN end date.
Credit
Card Payment Plan Authorization Form
Use this form to authorize a SET number of payments of the
SAME amount each time.