By Ian Pellicano on 2018, July 17

How to offer recurring credit card payments for your online travel insurance company

By Ian Pellicano on 2018, July 17
How to offer recurring credit card payments for your online travel insurance company

Many people pay online today. If your business is already online, chances are you’re already accepting this form of payment. However, in the online travel insurance business, it may also be smart to consider recurring payment models. Insurance premiums can often be paid monthly or annually so your customers are likely to expect the same type of payment flexibility online. This service can be easily extended to your website, with the right gateway in place.

By reducing the price of a first payment and setting up the facility of recurring credit card payments you are offering more options to your clients. Breaking down a payment into installments allows clients to afford the product they need now, and of course helps you gain more business.

So how do you go about setting up recurring credit card payments for your business?

  1. Recurring credit card payments within your business model
    The first thing you need to do is look at your back-office and create some payment structures that make sense for your business. Identify the products that might be difficult to sell due to high premiums and try to find ways of breaking these down into smaller payments. You do not necessarily have to go for a one-off payment, or a 12-month payment, but you can also look at breaking down the payment into a number of smaller instalments.

    Don’t feel like the duration of the policy needs to be connected to your payment terms. Do take note of product timing and delivery. For example, if you sold a travel health insurance policy for a family travelling to Peru later in the year, you can afford to break it down into 2 or 3 payments, however if the policy has been purchased for a last-minute flight, you should make sure the payment is settled before boarding. Always make sure that the payment options have you covered.

  2. Watch the charges for credit card payments
    More transactions could mean more charges and more currency conversion risk. Make sure all options have been explored and all expenses involved have been calculated. It is not uncommon to pay more in total when you’re paying added installments. For example, you can opt for a one-time $600 payment or 2 payments of $330. The additional fee ensures that card processing, conversion and administrative expenses are covered when more transactions are opted for.

  3. Integrate with your website
    Speak to your payment gateway provider to set-up all the features required for the options you have decided to offer. Often the gateway will need to assess all options and integrate directly with your shopping cart.Ensure that you have all information with regards to pricing and the number of instalments, as well as the territories you wish to work with, before speaking to your gateway service provider.

    Once set-up is complete you can also use this feature on your website to service clients that buy offline. By offering more payment options you are at the same time offering a better service and building stronger customer relationships.