Instant Recurring Payment

Implementing instant recurring payments with real-time payment services involves leveraging their capabilities to ensure timely funding from the payer to the payee. Here's how you can set it up:

1. Establish Recurring Payment Agreement:

• The payer and payee agree on recurring payments, specifying the amount, frequency, start date, and duration. This agreement can be set up outside of real-time payment services.

2. Configure Recurring Payment Setup:

• Utilize the features provided by the chosen real-time payment service to configure recurring payments. Input the agreed-upon payment details into the service's platform.

3. Initiate Initial Request for Payment (RfP):

• The payee generates an invoice or Request for Payment (RfP) based on the recurring payment agreement. This can be done manually or through an invoicing system, though it may not be real-time.

4. Authorization:

• Ensure the payer authorizes the payee to initiate recurring payments through the selected real-time payment service. This authorization can be established securely within the service's platform.

5. Scheduled Payment Processing:

• Utilize the scheduling feature of the real-time payment service to automatically process payments at the agreed-upon intervals. Set up the payment schedule to trigger on-time payments.

6. Instant Funding:

• Leveraging the real-time capabilities of the payment service, funds are transferred instantly from the payer's account to the payee's account at the scheduled time. This ensures timely funding, even if the initial invoicing/RfP was not real-time.

7. Confirmation and Notification:

• Both the payer and payee receive immediate confirmation and notification of each payment transaction through the real-time payment service's messaging system or notification features.

8. Reconciliation:

• Reconcile payment records regularly to ensure accuracy. Compare transaction records in the real-time payment service's platform with accounting records to verify that all payments have been processed correctly.

9. Error Handling:

• Implement error handling procedures within the real-time payment service to address any payment failures or discrepancies immediately. This may include retrying failed payments or investigating the cause of errors for resolution.

By leveraging real-time payment services for instant recurring payments, you can automate the payment process, ensure timely funding, and streamline reconciliation processes between the payer and payee, even if the initial invoicing or RfP is not real-time.