
What is recurring payment?
Recurring payments are transactions that occur on a repetitive basis and on a prearranged schedule (monthly, weekly, daily or annually).
For example, when you use a subscription service, payments are charged to the same payment method for a predetermined duration of time.
Recurring payments are also known as subscription payments, automatic payments, or recurring billing.
Charging customers on a recurring basis helps businesses increase conversions. It is inconvenient for customers to have to resubmit payment information on a regular basis. Automated billing prevents businesses from losing customers because of this inconvenience.
Benefits of recurring payments:
- they speed up transactions: payments get deposited into your business bank account automatically
- they save time both for you and your customers: recurring payments minimize the time spent on payment administration
- they guarantee a reliable cash flow: this way managing your existing assets and planning your budget is much easier.

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