Setting Up Recurring Payment Collection for Boarding Operations
Recurring payments are the cleanest solution to the monthly payment cycle at a boarding facility. Instead of generating invoices, waiting for checks, and following up on late payments, the charge processes automatically on the due date. For clients who prefer it and for facilities that can offer it, recurring payment collection reduces administrative time and eliminates most late payment situations.
How Recurring Payments Work
Recurring payment collection requires clients to store a payment method on file: either a bank account for ACH direct debit or a credit or debit card. On the billing date, the system initiates the charge for the amount owed that month. The client receives a receipt and the payment is recorded automatically.
This is different from just having a client's card on file and charging it manually each month. True recurring payment collection is automated: the charge processes without requiring anyone to log in and initiate it.
For this to work, three things need to be in place:
- A payment processing integration that supports recurring ACH or card charges (Stripe, Authorize.net, or similar)
- Your barn management platform connected to that processor
- Signed client authorization to charge their stored payment method on a recurring basis
The authorization is a legal requirement. Clients must explicitly agree to recurring charges, and you must keep records of that agreement. Never charge a stored payment method without a signed recurring payment authorization on file.
ACH vs. Credit Card: What to Offer
ACH bank transfer is the most cost-effective option for facilities. Transaction fees are typically flat-rate (around $0.25 to $1.00 per transaction) rather than percentage-based. On a $700 board invoice, an ACH fee might be $0.50. A credit card at 2.9% plus $0.30 costs $20.63 for the same transaction. For a facility processing $20,000 to $50,000 per month in board fees, that difference adds up quickly.
The downside of ACH: transactions take 3 to 5 business days to settle, and failed transactions (insufficient funds) are reported after the fact rather than in real time like a declined card.
Credit and debit cards process faster, fail in real time (declined immediately if funds are unavailable), and many clients prefer them because they earn rewards. The processing cost is higher, but some facilities pass the fee to clients as a convenience fee to offset the expense.
Most facilities offer both and let clients choose, with a clear preference stated for ACH.
Handling Failed Payments
Failed recurring payments need immediate attention. A failed ACH payment may not be apparent for 3 to 5 days. A declined card is immediate. Your response should be the same either way: contact the client promptly, explain what happened, and get a corrected payment method or alternative payment within a defined timeframe.
A practical failed payment policy:
- Day 1: Automatic notification to client that payment failed (email and/or text)
- Day 3: Personal follow-up if no response
- Day 7: Second attempt with updated payment method, or manual payment received
- Day 14: Account placed on hold if no payment resolution
Build this policy into your boarding agreement so clients understand the process before a failure happens.
Most payment processors allow one automatic retry after a failed transaction. Whether to enable this depends on your relationship with the client. An NSF fee from their bank on an automatic retry may create frustration.
Client Authorization and Documentation
The recurring payment authorization form should clearly state:
- Who is being charged (full legal name of account holder)
- What payment method is being authorized
- The recurring charge amount and frequency
- How the client can cancel the authorization
- What to do if there's a dispute
Keep a signed copy of the authorization in the client's file. If a chargeback or dispute is filed, your signed authorization is the primary evidence that the charge was authorized.
Digital authorization through a payment portal is legally equivalent to a paper signature in most jurisdictions, provided the system captures a timestamp and the client's confirmation. This is preferable to paper for most facilities because it's immediate and automatically stored.
Setting Up Recurring Charges in BarnBeacon
BarnBeacon's billing module supports storing payment methods and setting up recurring charge schedules. When a client authorizes autopay, their payment profile is linked to their boarding account. When monthly invoices generate, clients on autopay have their payment initiated automatically on the due date.
This removes the manual step of processing payments individually and reduces the number of invoices you need to follow up on personally. Clients who are not on autopay still receive invoices and reminders; clients on autopay receive receipt confirmations after the charge processes.
Communicating Recurring Payments to Clients
When introducing automated payments to existing clients, frame it as a convenience. "We've added autopay to make monthly board payments easier for you" is more effective than "we're moving to automatic billing." Offer it as optional initially; once most clients are on autopay, the few remaining check writers become the exception rather than the standard.
For new clients, make autopay part of the onboarding process. Include the authorization form in the boarding agreement package alongside the intake paperwork, health record forms, and policy acknowledgment. Treating it as routine from the start is more effective than presenting it as an optional feature.
See also: automated barn billing, automated board billing, barn billing setup