Proper billing is the key to your success. Billing
should produce the least amount of stress for your customers, causing them to
want to use your services again, and even to recommend your services to
others. Proper billing reduces the number of charge-backs and cancelled
subscriptions, creating a more pleasant and profitable experience.
There are two billing
options:
One Time Billing
Recurring
Billing
Both billing types can be used in conjunction.
One Time Billing
The customer is charged once for the services they
purchase. Comparably, you would only pay once for a ticket to the second
game of the World Series.
Does One Time Billing Fit with Your Business?
One Time Billing is appropriate if:
The content/services you sell never change
Your customers need your services one time
only
Your service is not continuing
(like insurance or magazine)
Amount you plan to charge is not cost-prohibitive
If you offer services that change frequently or elicit
subscribers, you will want to offer Recurring
Billing.
How Does One Time Billing Operate?
Your customers will go to the signup page, and select the
option listed for One Time Billing. There may be several options for them to
choose from. For Instance, the choices might be 3 months for $29.95, 26
weeks for $53.95, or 1 year for $100.00.
The customer submits their order and credit card
information along with a unique Username and Password. Upon approval, the
user will be added to the database, and activated for the number of days
purchased. The customer will be unable to gain access to your site at the
end of the expiration period.
Once the transaction has been accepted, the customer will
receive confirmation via a web receipt. The Webmaster will also receive
confirmation via E-mail.
The transaction will then show up once on the customer's
credit card statement. CCBill also offers a Wholesaler
Account Program; the name on the transaction will appear as
"CCBill".
One Time
Billing and Recurring
Billing may be offered concurrently
Recurring
Billing
The customer is treated as a subscriber. The "subscriber"
provides credit card information on their initial visit, and is billed every
30 days until their subscription is cancelled. Recurring Billing is
appropriate if:
Services or content changes frequently
Business attracts subscribers
Recurring Billing can also be flexible with Pricing
Schedules.
An initial trial period from 1 to 30 days can be
established with the same rate, or a rate lower than the ongoing monthly
rate. This initial trial rate can be set to $0, to entice potential
customers.
After the initial trial period, all recurring billing
occurs every 30-days. This 30-day cycle guarantees that your customer
receives one charge, rather than multiple charges occurring on a weekly or
bi-monthly cycle. Multiple charges are often perceived as over billing, and
generate more charge-backs and customer complaints.
All customers (even those whose initial trial rate is $0)
are still required to provide their credit card number for future
authorization. For Recurring Billing, a minimum dollar amount of $2.95 is
required for every 30-day period (except the initial trial
period).
With Recurring Billing, a minimum dollar amount of $2.95 is
required for every 30-day period (except the initial trial period).
Trial Period (1 to 30 days) is the amount of time, between
the initial and recurring charges.
Recurring Charge is the amount billed after the trial
period has expired. This is repeatedly billed every 30 days. The billing
amount can be less than or equal to the initial charge, but must be at least
$2.95.
Setup Fees- Some companies include these in the first
billing cycle. Example: A web hosting company must initially perform a lot
of setup work, but subsequently puts out less effort maintaining the
account. The setup fee can be added into the initial charge.
The chart below shows example Pricing Schedules for
Recurring Billing.
|
Initial Charge |
Trial Period |
Recurring Charge |
| Typical Rebilling A |
$20 |
30 days |
$20 |
| Typical Rebilling B |
$20 |
0 days* |
$20 |
| Set Up Fee Included |
$35 |
30 days |
$20 |
| 1st Month Teaser Rate |
$5 |
30 days |
$20 |
| Teaser during short Trial Period |
$2.95 |
7 days |
$20 |