What is Recurring Billing | chargebackhit.com

Recurring Billing


Recurring billing is when a merchant automatically charges customers for goods or services based on a predetermined schedule. The merchant obtains the necessary customer information and consents to establish recurring billing. Subsequently, the vendor automatically initiates recurring charges to the customer’s account, requiring no further permissions.

Numerous goods or services that customers subscribe to with regularly scheduled payments are suitable for recurring billing. Examples encompass cable bills, cell phone bills, gym membership fees, utility bills, and magazine subscriptions. Recurring billing is also commonly referred to as automatic bill payment.

Recurring billing offers several advantages for businesses. It allows for the automatic deduction of customer payments on a regular basis, reducing the risks associated with accounts receivable. Additionally, some business providers may require recurring billing, while others may offer discounts to customers who opt for this payment method.

From the customer’s perspective, recurring billing saves time as they only need to sign up and provide payment information once, eliminating the need for repeated manual transactions.

Different types of recurring billing methods include fixed billing, variable billing, metered billing, and quantity-based billing. These methods provide flexibility in adapting to diverse pricing structures and billing requirements.