Recurring Billing Overview
- Recurring Billing is used to set up a billing cycle to automatically charge a customer.
- This is setup individually for each customer, and it must use the same credit/debit card number.
- The PayHub Virtual Hub gives you a lot of control over how you set this up, you can do weekly, daily, biweekly, monthly, specific dates, etc.
- To help you stay abreast of your Recurring Billing, the PayHub Virtual Hub will send you (the merchant) an email notification when a recurring bill transaction fails. It will not send an email notification on successful transactions.
Recurring Bill Basics
PayHub Supports Recurring Billing
You can set up a recurring bill to automatically charge a credit card an amount on a schedule.
- Example A: Customer A is billed $30.00 every first of the month, on card ending in XXXX, starting 5/20/2017, and to do so indefinitely.
- Example B: Customer B is billed $15 every 2 days, on card ending in XXXX, starting 5/23/17, and ending on 5/28/17
The 5 States of a Recurring Bill
- Active: is processing its scheduled transactions.
- Paused: a user of the PayHub account has pressed 'Pause' in the recurring bill. It is NOT, and will not, process any of its scheduled transactions until a user of the PayHub account presses 'Unpause' in the recurring bill. 'Unpausing' a recurring bill will change its state to 'Active'.
- Delinquent: because of a failed transaction it is NOT, nor will it, process any of its scheduled transactions until a user of the PayHub account selects the 'Restart' button in the recurring bill. 'Restarting' a 'Delinquent' bill will change its state to 'Active'.
- Completed: its 'End:' date has passed and it has completed its scheduled transactions. This type of recurring bill is permanently 'inactive'. It can neither be 'Unpaused' nor 'Restarted'.
- Canceled: It was canceled when a user of the PayHub account selected the 'Stop' button on the recurring bill. It is permanently 'inactive'. It can neither be 'Unpaused' nor 'Restarted'.
Recurring Bill Lifespan
A 'Recurring Bill' will run for as long as it is scheduled....OR... until one of the following happens:
- You or another user on the same PayHub account manually 'Pause' or 'Stop' it.
- A 'Paused' recurring bill CAN be 'UnPaused'.
- A 'Stopped' recurring bill canNOT be unstopped and is considered 'Canceled'.
- One of the recurring bill transactions fail, which will automatically set that recurring bill to 'Delinquent'.
- A 'Delinquent' recurring bill 'CAN be 'Restarted'.
Setup a New Recurring Bill
- To start, log into the PayHub Virtual Hub. After Log in, click the Add Recurring Billing button in the upper left corner of the window.
- Manually enter the credit card info or click on the Switch to Swipe button if you want to swipe the card to grab the information.
- Enter the amount of the sale into the Amount field.
- Enter shipping amount.
- Tax will auto fill based on tax amount entered under Admin>Shipping and Tax Rates.
- Set how often to bill via the dropdown box.
- Daily: Every (x) days
- Weekly: Select specific days and Every (x) weeks
- Monthly: Every (x) months on various days
- Yearly: Every (x) years on (x) date
- Specific Dates
- Set Start/Stop times as needed.
- Once you have configured the way it needs to be for charges, click on “Process Recurring” button.
Pausing Recurring Bills
You CAN 'Pause' a recurring bill .
- Select the 'Pause' button at the top of the 'Delinquent' recurring bill.
Stopping Recurring Bills
You CAN 'Stop' a recurring bill.
- Select the 'Stop' button at the top of the 'Delinquent' recurring bill.
Failed Transactions / Delinquent Recurring Bills
A failed transaction WILL make a recurring bill 'Delinquent'.
- If there is a failed transaction, the recurring bill's state will be changed to 'Delinquent' AND it will cease to process. It will NOT charge again until the 'Restart' button in that recurring bill is selected.
Merchants will ONLY get email notifications when the recurring bill transaction has failed. Not for successful recurring bill transactions.
Unpausing Paused / Restarting Delinquent Recurring Bills
You CAN 'Restart' a recurring bill that has been set to 'Deliquent'.
- Select the 'Restart' button at the top of the 'Delinquent' recurring bill.
You CAN 'Unpause' a recurring bill that has been 'Paused'.
- Select the 'Unpause' button at the top of the 'Paused' recurring bill.
Stopped/Cancelled Recurring Bills
You can NOT 'Unstop' a recurring bill that has been 'Stopped'.
Unlike a 'Paused' recurring bill, once you manually 'Stop' a recurring bill, it is consideredCancelled and can NOT be restarted. A new recurring bill will need to be crated if you want to schedule similar payments.
Editing Recurring Bills
You can edit a recurring bill from within the recurring bill. Always select 'Update' to save your changes.
Recouping Monies From a Failed Transaction
When a recurring bill transaction fails, its state is changed to 'Delinquent' and it ceases to process transactions. To resume processing scheduled transactions, you will need to 'Restart' the recurring bill. The recurring bill will ONLY charge upcoming scheduled transactions from the moment you restart it onward. If there were any uncollected monies, like that in the failed transaction, or any skipped transaction during the time the recurring bill was 'Delinquent', you will need to decide the following:
- Will you collect that money?
- If not, no steps are taken to collect.
- If so, will you collect it as cash or via credit card?
- If you are collecting cash, there are no steps taken to collect within the Virtual Hub.
- If you are collecting using a credit card, you will need to run a one time transaction.
- If you are collecting one lump sum, you will run a single one time transaction.
- If you are collecting each missed transaction separately, you will need to run a one time transaction for each of the failed/missed transactions you are collecting for.
- Example: A customer has a monthly recurring charge on the 1st. In April they were over the limit on their card and as a result their scheduled transaction failed. Consequently those monies that were being charged were not collected and the recurring bill went into 'Delinquent' status. The merchant did not log into his Virtual Hub for a little over a month, around May 5th, after the second monthly transaction would have been processed. They had not noticed the red 'Delinquent' counter on the home page indicating there was a delinquent account. The merchant now sees this upon logging in and decides to restart the bill. Now that the recurring bill is restarted and set to charge on the next scheduled date, the merchant needs to decide what to do about the initial failed transaction and the subsequent missed transaction (the transaction that was not charged while the account was in 'Delinquent' status). After discussing the monies owed with the client, the merchant decides to collect both charges. They do so by running two separate transactions from the process a card feature within the customer account for that customer. Having taken these steps the merchant has now restarted the recurring bill and recouped any missed monies, and the customer is up to date and back on the expected recurring bill schedule.
How do I handle a Delinquent Recurring Bill
For more comprehensive instructions on how to handle a 'Delinquent' recurring bill, please refer to our Managing Delinquent Recurring Bills Post.
Look up a Recurring Bill/Modify
- Coming Soon