Setting up Stripe subscriptions using ChargeStripe can help prevent late payments and improve customer relationships.
Stripe subscriptions with ChargeStripe allow you to set up ongoing payments for your customers, which can help reduce costs, prevent late payments, and as a result, improve your customer relationships.
Subscription-based companies like Netflix, Dollar Shave Club, and Microsoft have been thriving for a long time. By using ChargeStripe to process Stripe payments, your company can too.
We’ll show you how to set up subscriptions with Stripe and discuss some use cases and benefits in this post.
Table of Contents
- How to Set Up Stripe Subscriptions with ChargeStripe
- Why You Need to Use a Subscriptions Model to Grow Your Business and How ChargeStripe Can Help
- How Stripe Subscriptions Keep Your Costs Low and Why You Should Be Using Them
- Frequently Asked Questions about Stripe Subscriptions
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How to Set Up Stripe Subscriptions with ChargeStripe
You can set up ongoing Stripe subscriptions within minutes from your phone.
Step 1: Download ChargeStripe
Our app is available for iOS and Google Play app stores and is free to download.
Step 2: Log in with your existing Stripe account
To use ChargeStripe, you’ll need a Stripe account so if you don’t have one, create one here. After downloading ChargeStripe to your phone, you need to log into your Stripe account using your email address and password.
Step 3: Create a Stripe Subscription Plan
Once you log in, create a Stripe subscription following these instructions:
- Find the subscription feature on ChargeStripe’s menu.
- Click on + to add a new subscription plan to your Stripe account.
- Set up the Stripe recurring payment information (Product or Service name, amount, frequency).
- Click Save.
After creating the subscription plan, select the customer or customers that will pay for the recurring subscription:
- Go back to the subscription feature on ChargeStripe’s menu.
- Click on the subscription you created.
- Add client’s personal and credit card information.
- Click Save.
Then, your client will be billed the amount you’ve set for the subscription plan at the chosen frequency.
How can I confirm a successful payment?
If a credit card expires or is canceled, the payment cannot go through. Even though you set up a subscription for a client, it’s imperative to confirm payments periodically. You can do this within your ChargeStripe account by going to the app’s menu and clicking on Previous Transactions.
Why Stripe Subscriptions will Grow Your Business and How ChargeStripe Can Help
Many businesses rely on subscription models to keep costs low and customers engaged. For example, companies like Spotify and Netflix use subscriptions to give customers access to their services for a monthly fee.
Spotify’s subscription offerings.
This approach has several benefits for both businesses and customers.
First, it helps businesses to predict and manage their costs more effectively.
For example, in Spotify’s case, offering monthly subscriptions at set prices helps them predict revenue for that month.
If they have 2,567,890 customers on the Individual plan for $9.99/monthly, they know they’re guaranteed to make $25,653,221.10 that month from this plan.
Second, subscriptions give customers a convenient way to access the services they need without making a large upfront payment.
GoDaddy uses subscriptions to its advantage. GoDaddy, founded in 1997, is a leader in web hosting services.
If you started a business but need a fast, inexpensive way to design a website, GoDaddy makes it attainable with its low start-up cost. $11.99/monthly is a small price to pay to create a website.
Finally, it allows businesses to offer discounts and other incentives to encourage customers to sign up for and maintain their subscriptions.
HBO Max is a master of this strategy. They:
- Offer free trial periods for new customers. This allows potential subscribers to try out the service and see if it fits them before committing to a monthly or yearly subscription.
- Offer discounted rates for customers prepaying annually. This helps to keep existing customers from canceling their subscriptions and encourages new customers to sign up for longer-term memberships.
- Offer discounts to subscribers who choose a limited ads subscription. This gives customers control over the experience they want from the service.
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Subscription models offer a host of benefits to businesses, so how can ChargeStripe help?
ChargeStripe is a Stripe payment processing company that helps small businesses accept mobile credit and debit card payments from anywhere and anyone. Taking payments is a simple, two-step process:
- You type, scan, or send mobile payments by typing in card information, scanning card details, or sending a payment request to customers through email or text.
- The customer pays you!
Payouts take 2-3 days to hit your bank account, and we don’t charge hidden fees.
Customers who use ChargeStripe for Stripe subscriptions have seen many benefits, including:
Reduced late payments
Subscriptions use auto-pay. Every month or year, you bill your customers for your services. This automatic payment reduces the likelihood of missed or late payments that harm your cash flow.
More free-time
Instead of manually sending individual invoices, ChargeStripe sends payments automatically, saving businesses precious time and minimizing invoices and paperwork.
Improved customer experience
Customers never need to guess when their next payment will occur with Stripe subscriptions. They always know, and this consistency breeds satisfaction.
Safe payments
ChargeStripe’s payments go directly through Stripe, offering two-factor authentication and annual Payment Card Industry (PCI) compliance validation.
ChargeStripe is an excellent choice for small businesses that need an affordable way to start recurring billing.
How Stripe Subscriptions Keep Your Costs Low
A Stripe subscription is an ongoing billing service allowing you to bill your customers regularly. It’s ideal for businesses with recurring revenue streams, such as the subscription SaaS (software-as-a-service) industry.
Unlike other subscription platforms, Stripe does not charge additional fees for using its service. This makes it an extremely cost-effective solution for businesses of all sizes. In addition, Stripe offers a wide range of features that make it easy to manage your subscription business. For example, you can use Stripe to send invoices to your customers instantly, track recurring payments, and offer discounts and coupons.
The Little-Known Benefits of Using Stripe
In 2018, IDC conducted a Stripe-funded study measuring the impact of using Stripe as a payment processing platform. Their results were astounding.
By using Stripe, customers have seen:
Business and revenue growth
27.6% of the global population shops online. Online transactions aren’t the future; they are the present, and organizations require a payment platform with usability, scalability, and affordability.
IDC’s analysis through interviews with Stripe customers shows that, on average, businesses using Stripe realized 7% higher revenue, worth around $324,000 per year.
Increased Reliability
By using Stripe, customers saw significant performance improvements and, as a result, higher conversion rates and lowered abandonment rates due to increased user experience. On average, customers reduced their business losses by 39%.
Reduced Costs
When it comes to running a business, every penny counts. IDC’s analysis showed that Stripe customers take online payments more efficiently than non-Stripe users. That’s because Stripe customers:
- spend less developer time building and updating their payment platform. Less developer time = time spent on more mission-critical tasks.
- incur lower costs per transaction. Precisely 73% lower than costs incurred by average organizations and 52% lower than costs incurred by higher transaction volume organizations.
Overall, Stripe is an excellent choice for businesses that need an affordable way to start recurring billing.
Frequently Asked Questions about Stripe Subscriptions
Why use Stripe Subscriptions?
Stripe subscription payments offer a convenient way to set up regular billings for your customers or clients, like your Netflix account or gym membership. With Stripe, you can define the date and frequency of automatic payment requests (invoices), so you can rest assured that payments will regularly come. Stripe subscription payments are simple, efficient, and take the hassle out of billing.
How much does Stripe cost?
Stripe costs 2.9% plus 30 cents per transaction to accept online card payments and 2.7% plus 5 cents for in-person payments. There are no recurring monthly fees.
What is a good recurring billing solution for Stripe?
ChargeStripe is the best app for recurring payments for Stripe. There are no recurring membership fees, and setup can be done in less than 5 minutes.
Is ChargeStripe safe?
Yes. ChargeStripe uses Stripe’s security to process payments. Stripe has strict 2FA (two-factor authentication) and PCI compliance.
Ready to set up subscriptions for your business?
It’s easy! Just download our app, integrate it with your Stripe account, and set up a subscription for your customers. If you have any questions, don’t hesitate to contact our team of experts. We’re happy to help you get started with Stripe subscriptions and save money while improving your customer relationships.
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