Cascading Billing – Using Multiple Payment Processors For More Profit

Date: 2011.02.21 | Category: Billing Solutions | Tags:

‘Cascading Billing’ has been somewhat of a buzz word of late in the online industry however, there seems to be some confusion as to what this billing process actually involves or even does other than ‘process payments’ this is what we will take a look at in this brief article.

Cascading Billing – The Basics.

Simply put, Cascading Billing is a method to enable your surfers to buy membership to your site or, products utilizing multiple third party credit card processors and, other payment options. The process used, as its name suggests, is that of a ‘cascading’ feature meaning that, if you have multiple processors set up on your site and a surfers credit card is declined on your primary processor, the details will then be passed onto a secondary credit card processor where, they will either be accepted or declined and, if declined, the details can then be passed onto yet another credit card processor or, some alternate payment solution.

Cascading Billing – The Benefits.

From the initial reaction this new payment process has received in the online community it would appear that this new solution actually does work and, work well. Many companies who are adopting the ‘Cascading Billing’ process are reporting an increase in sales, some reporting upto a 20% increase over the normal procedures they used. This increase in sales also enables affiliate programs to pass the new found benefits onto the webmasters themselves through raised payouts and better sign-up ratios.

Cascading Billing – The Options.

As with any type of online payment processor or, payment system, you need to evaluate what your individual needs are and, using a cascading billing program is no different. With many solutions currently available and in development stages the choices for webmasters and program owners are growing and growing.

However, that said, first and foremost you need to choose which processors or, billing solutions you will use to begin your cascading billing. In an ideal world, you should choose two of the more reputable third party payment processors as your primary and secondary processor in addition to a tertiary payment option or, perhaps even a custom dialer solution. Generally speaking, this will give you the best way to monetize your own and, your webmasters traffic.

Cascading Payment Solutions – Overview.

When all is said and done, cascading billing offers webmasters and online e-business owners ample opportunity to increase their profits through minimal outlay either by renting the scripting that will allow you to utilize the cascading billing option (costs from $300 a month) or, having such a solution custom coded which, you can have done from as little as US$5000. Either way i am certain we will start to see many more of the top online companies offering this type of payment solution in the near future and, with some of the larger online companies already adopting this method, it is sure to start happening soon.

Article written by Lee