Are Recurring Payments the same as repeat billing?
There are lots of variations on the term “recurring repayments”. We have decided to use the term “Recurring Payments” as a brand for our service, but other terms such as “recurring billing”, “repeat payments”, and “subscription payments”could each be used to mean the same thing.
Are all recurring payments the same?
There are two types of recurring payments: either, they are fixed-term when they are set-up to run a specific length, such as ten monthly payments; or, they are open-ended so that they continue to run indefinitely
Payments can be set-up for “interval” and “recurrence”: Interval indicates how often the payment is taken. For example, payments can be collected on specified months or years. Recurrence is the number associated with the interval, so
- Months (every month and any variable up to 12 months)
- Year (any variable up to 5 years)
When the interval and recurrence are set, we call the series that is set-up a payment schedule.
When do recurring payments end?
The end date for fixed-term repetitive payments is clearly defined when the shopper makes their first payment. Open-ended repeat payments end when either the merchant or the shopper decide to stop collecting or making payments.
Are shoppers and merchants informed when a recurring payment arrangement ends?
Yes, we notify the merchant and shopper each time a payment takes place, and we will advise both merchant and shopper when either party ends the recurring payment arrangement. Our intention is to be totally transparent so that both parties have full visibility as to the payment schedule.
Can Nochex account holders use their existing accounts to accept recurring payments?
No. They will be set-up with a new, separate Recurrent Payments account. The settings within these accounts for charges and limits may be quite different from their regular ecommerce accounts. Account holders will need a different email address to be able to log into this account. These new accounts cannot be used to accept ecommerce payments.
How do existing account holders apply for an Account?
Existing account holders should contact their Account Manager.
How do new merchants apply for a Recurring Payments Account?
New merchants should complete an application form for a Merchant Account or a UK Trader Account.
How are recurring payments set-up?
It really is straightforward. Merchants have a simple generator that automatically creates recurring payments schedules. It is as simple as that!
Will there be separate charges for recurring payments?
Yes. There is a monthly charge of £20 and a different transaction fee. The complete list of charges is here:
- Monthly charge = £20
- Standard UK transaction fee = 3.4%
- International transaction fee = +0.5%
- Transaction fee = 20p
- Failed transaction fee = 20p
- Refund fee = 20p
When will monthly charges be collected?
The first monthly charge will be applied on the first day of the month following the day upon which the account was set-up. Subsequent monthly charges will be applied on the first day of each month. So, the first part month is free of the monthly charge!
How will fees and charges be collected?
They will be collected through account holders’ repeated payments account only.
What happens when a recurring payment takes place?
The funds are taken from the shopper’s card and placed in the account holder’s account as per an existing online payment. At the same time emails are sent to the shopper and the account holder.
Is it possible for a recurring payment not to be collected?
Yes. After the first payment it is quite possible for subsequent payments not to be collected for all sorts of reasons, including, for example, the card having expired or the bank cancelling the card.
Can shoppers’ set-up their own recurring payments arrangement?
No. The specifics of each regular payments arrangement, such as the number or value of payments, cannot be changed by the shopper. These settings can only be made by the Merchant.
How can shoppers cancel recurring payments?
They will be able to cancel their payment by contacting the merchant directly and requesting the cancellation – this is our preferred method of making a cancellation.
Are there any ways in which recurring payments cannot be used?
We are not licensed to offer credit agreements, so we cannot offer this facility. A credit agreement is when a monetary loan is made to a customer for a specified amount of time.