Best Tips for Managing Recurring Invoices and Subscriptions

Managing recurring invoices and subscriptions is a crucial duty for companies that offer goods or services. Given the rising popularity of subscription-based business models, a solid invoice management system is essential to guarantee accurate billing and on-time payments. 

There are some measures and strategies you can do to lessen the number of chargebacks you have to deal with. Your very first recurring transaction is where it all starts.

 Managing Recurring Invoices and Subscriptions 

Save Important Information Securely

Launching a recurring billing system will cause you to collect sensitive consumer information quickly you must retain on file. The data on file should be kept current and securely stored. Information that was incorrectly maintained was the cause of some of the worst hacking incidents in recent commercial history.

You might want to look into third-party services, like Visa Account Updater (VAU). This securely processes account information and notifies the system about any required updates to cardholder information if you don’t already have an internal electronic information processing service that stores information accurately and securely.

Do Some Research On Subscription Billing Software

Using subscription-billing software is a terrific approach to guarantee the security of both payments and sensitive personal data. Software of the highest quality will offer correct information storage and Encryption, as well as detailed history, email receipts, and communications management.

They will, of course, charge for their services, but if it helps you cut down on fraudulent payments, chargebacks, and lost clients, it’s a tiny thing to pay.

Create Clear Policies

Strong transaction policies must be in place for all businesses offering products or services to maintain efficiency and prevent fraud. Transparent policies are even more crucial when lowering the number of chargebacks linked to recurring payments.

Ensure all customers know your cancellation policy, including any associated costs. Customers will still call to question their monthly subscription payments, but if they are well-informed of your procedures in advance, you are more likely to steer clear of many of those tangles.

Being upfront and transparent implies you must be honest regarding pricing, billing intervals, and other pertinent information. Consumers should never be surprised when receiving a bill; otherwise, they can decide to stop paying.

You need to speak plainly and avoid business jargon. By looking at their bills, consumers should be able to quickly and easily know what they are being charged for. Also, this needs to be easily accessible from your website.

Likewise, if your pricing or billing policies change, inform your clients. Clients value transparency and it will help you establish a relationship of trust with them.

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Engaging With Clients

One of a subscription company’s most crucial elements is customer communication during recurrent transactions. It is essential to identify all recurring transactions so customers can locate them on their bank statements.

Also, it’s essential to notify your clients before charging their accounts. It will only cause you more trouble to try and deceive customers into keeping a subscription service going by letting them “forget to cancel.”

According to best practices for managing subscriptions and recurring billing, you must give clients ten days’ notice before any recurring transactions. Also, it is crucial to let customers know in advance if there is any modification to the authorization of their existing payment method or a change to the amount billed.

Your Subscriptions Should Be Flexible.

Consumers ought to always feel in charge of their subscriptions. As a result, you should present them with a range of options and allow them to select the one that best suits their needs. Also, it would help if you were open to altering plans at a client’s request.

For instance, you should permit consumers to downgrade their membership without incurring fees. Similarly, you should make it simple for customers to upgrade if they choose. This is done to ensure that clients feel in charge of their subscriptions. They will be less likely to end their membership as a result.

Make It Simple For Clients To Cancel

Consumers shouldn’t ever feel confined by a subscription. Hence, you must make it simple for them to stop their membership if they want. You should also make it simple for clients to pause their subscriptions if necessary. This might be done for various reasons, such as taking a trip or waiting for your service.

Consumers should know they can stop or terminate their membership whenever necessary. This will lessen the possibility that they will altogether discontinue their subscription.

Take Into Account Auto-Renewals

Auto-renewals are an excellent approach to ensure your clients never need to renew their subscriptions. This might be an incredible convenience for your consumers and can prevent you from losing them due to expired subscriptions.

Auto-renewals can also aid in boosting your client retention rate. Clients are more likely to stick with your service if they are spared the stress of renewing their subscription.

The aim is to make it as simple as possible for your clients to keep using your service. By doing this, you’ll be able to save more clients and lower churn.

Using The Retrying Procedure To Reduce Churn

If no action taken to correct a technical problem that causes a transaction to fail, the customer lost owing to non-payment. The company’s revenue is impacted, and the customer relationship harmed. But, the intelligent retrying method can reduce this. The innovative retry feature of the dunning management system notifies customers automatically when a payment has failed and schedules further attempts to recover the amount. Usually, the denied card tried up to five more times, spaced out at different times.

There may be instances where a customer refuses to respond to a payment decline despite repeated warnings and is about to leave owing to non-payment. When all else fails, you should intervene manually and contact the consumer to fix the problem. Even if it takes time, it is worth the effort if there is a remote chance of recovering the payment, particularly from a valuable customer.

Communicate Immediately After Policy Changes

Most businesses occasionally change their payment arrangements, and they must inform their clients of these changes. To effectively communicate any changes to your policy, use platforms like email, social media, company websites, and billing bills.

As vital as contacting your clients before you bill them is telling them of any changes to made in the authorization of their existing payment method or any adjustments to the amount charged in advance. You may avoid chargebacks and keep customers loyal by sending timely notices of policy changes and other changes connected with recurring payments.

Prioritize Security at First

As a subscription-based company, you must collect, handle, and keep client data, including their private payment information. As a result, failing to retain this data securely will cost you consumers and jeopardize your company’s financial health and reputation.

As you’ll handling routine transactions through your website, the mechanism you employ for your transactions should always encrypted. Don’t attempt to skimp on this specific procedure. Making time, money, and effort investments will help keep your payment system safe and feasible.

If personal account information is available online for hackers and identity thieves to exploit as free ammo, using insecure payment methods could result in a chargeback disaster.

Card issuers require PCI compliance to secure recurring payments and safeguard consumer data against identity theft. You must be PCI compliant if you run a business that keeps, processes, or sends card data.

Maintaining PCI compliance, however, can be an uphill task. Being non-compliant is not a choice; it costs money and necessitates regular monitoring. Without PCI compliance, you risk facing fines and significant security issues. Businesses that fail to protect customer card information adequately will required to cover the predicted damages since issuing banks suffer losses due to customer fraud brought on by data breaches.

Therefore, most organizations use a payment gateway that conforms with the PCI DSS to avoid the hassle of maintaining PCI compliance. Some payment gateways are responsible for PCI compliance by tokenizing and storing consumer credit card information on their servers. They permit access to the customer’s card information in their account on your website by retrieving it from their servers via a token. You do not need to seek PCI DSS certification if your payment gateway supports tokenization.

Using these tools, the payment processor may ensure that only authorized cardholders can make transactions by verifying that the billing address or CVV submitted with a transaction corresponds with the information stored on file at the issuing bank for the corresponding card.

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Provide discounts on a limited-time subscription.

Giving particular consumers one-time discounts is one method to provide your customers a little relief with little effort. It can be just what they require to maintain their account.

There are subscription products in each subscription for a customer. You can also apply a discount to each of those subscription packages.

The amount of time you specify counts down by billing cycles until the discount applied to the processes left. On a monthly subscription, for instance, you might have a discount applied to a particular product the following month but not to any of the invoices already sent.

The new charges generated by the subscription products affected by the active discount the only ones impacted when you apply a value to a customer’s subscription.

Real-Time Reporting For Tracking Subscriber Churn Metrics

Successfully collecting recurring payments depends on effective reporting. Companies should invest in software that automatically provides reports representing important churn metrics because losing track of subscriber attrition with large user populations is simple.

These figures are crucial for comprehending growth and financial health and can be valuable tools for attracting and keeping customers. Manual reporting of these indicators is doable but time-consuming; expanding businesses might find it impractical. After your free trial, are you noticing a significant rise in customer churn? Find out why by being curious. The attrition rate probably indicates a problem that your team can resolve.


Finally, any organization that provides goods or services regularly must manage recurring invoices and subscriptions. In addition to streamlining the billing process, an effective invoice system enhances customer interactions and cash flow management. Businesses must employ a reliable invoice  system to stay profitable and competitive in the growing trend toward subscription-based business models. By implementing an efficient invoice program, businesses can save time and money while giving customers a seamless and easy experience.