For years, standing orders, direct debits and card on file have been used to collect repeated payments such as subscriptions, memberships, installments, bills, and recurring fees. However, just because these options are well established, that doesn’t mean they are perfect.
The traditional methods in place to enable repeated payments (direct debit, standing orders, and debit/credit cards) can pose several challenges to companies accepting them such as high fees, chargebacks, long settlement times, and risks of fraudulent activities. In particular, cards do expire, get lost, revoked, and their spending limits can cause payments to fail inevitably leading to subscriptions being cancelled.
If you are thinking “there must be a better way” as you read this, you are in luck! There is in fact another option available on the market.