Implementing recurring payments on a website is an important tool that enables the regular and automatic collection of payment for goods or services from customers without requiring constant reminders. Payment acceptance is configured so that the customer only needs to input their account information once, with the funds then being debited according to the established schedule.
This payment format is oriented towards
- educational services;
- entertainment or gaming sites;
- cloud providers;
- credit service;
- and online shops.
We have already discussed the advantages, well-known examples, and business models in a previous article. Now, let's delve into the mechanism of how to connect this tool.
Dependency of Recurring Payment Functionality on Payment Systems
Each payment system has its own peculiarities, so before selecting a payment system, it is necessary to think through and accurately formulate the requirements and describe the functionality. If the payment system has already been integrated, our specialists will help you figure out which specific functions of recurring payments it supports.
After a thorough review of the documentation for several payment systems, conducting a comparative analysis can help you select the right option to implement your business model.
Functionality of Recurring Payments Dependent on the Payment System
The American Stripe system makes it possible to implement the following settings:
- Start and end dates of the subscription
- Payment interval
- Whether the subscription will be cancelled when its term ends.
- Will there be a free trial period during which no payment is collected? The payment system allows for specifying the number of days from the beginning until the end of the trial period. This feature can be used for purchasing subscription-based software when the first month is supposed to be free.
- Stripe allows for temporarily pausing and resuming subscriptions.
- The option to cancel a subscription directly on the website without logging into the personal account is also available.
- It allows for specifying the period during which the client should make a payment.
- Payment types can be attached to the Subscription object.
- For each stage of the subscription lifecycle, Stripe sends information to the website, allowing for generating reactions to a comprehensive list of events.
Another example is the PayPal system, where the payment system server, like in Stripe, sends information about various events on the payment system server to the website. The system has the following functionality:
- The ability to create plans, based on which users are charged a fixed amount at regular time intervals or depending on the quantity they are subscribed to.
- Just like in the Stripe payment system, there is an option to set a free trial period.
- The ability to set trial versions with discounts.
- It allows for providing users with the ability to change their subscription plan.
- It allows for automating the recovery of failed payments.
Once the list of requirements is formulated, it is necessary to move on to their implementation.
Implementation of recurring payments
This process includes the following stages:
- Selecting a payment gateway that supports recurring payments. For example, this can be Stripe or PayPal, as we have already mentioned, or other payment systems.
- Connecting the payment processing method. This can be done by using a payment API processor or by integrating with a ready-made third-party software package.
- Setting up recurring payments in accordance with the functional requirements developed. This means specifying the frequency of payments, start and end dates, the presence of a free period, etc.
- Creating a payment form on your site that will use the payment system's API, where the recurring plan will be specified.
Algorithm for connecting a payment system
- The first thing to do is to clearly formulate the requirements for the project and the business model, comparing them with the further scaling plan.
- After that, it is worth carefully studying the documentation of the available payment systems in the country in order to choose the one that corresponds to the goals of the business implementation.
- Next, it is necessary to conclude a cooperation agreement with the payment system and gain access to their API or integration tools.
- After integrating the payment system, payments are configured, including recurring ones. Their parameters are set based on the capabilities of the system.
- The last step is to check the operation of the system and configure security. After connecting, it is worth making sure that the site and the integrated payment system meet the security requirements and are protected from hacker attacks. Security can include using SSL certificates, setting up protection against DDoS attacks.
How to work with and make changes to an integrated payment system
It is worth comparing your requirements for recurring payments with the capabilities of the payment system already integrated on the site. Based on this analysis, configure payments using their functionality.
However, it should be understood that there is a high probability that the requirements will need to be significantly adjusted and adapted to the peculiarities of the payment system. That is why, even before its connection, it is necessary to analyze all ways of scaling and to clearly understand the potential risks and limitations of the system.
Additional conditions
It is important to pay attention to the development of additional conditions, such as implementing a subscription cancellation processing system or error handling procedures. During payment processing, errors can occur, such as validation errors or network errors. It is necessary to implement error handling to prevent unwanted consequences and notify users of their occurrence.
The implemented functionality requires testing, ongoing maintenance, and periodic updates.
