Recurring payment or recurring billing refers to a business model in which money is regularly taken out of a customer's account to pay subscription fees for goods or services.
Advantages of Recurring Payments
Speed Up Transactions
You won't need to chase down payments or waste time preparing invoices any longer because the system will take care of everything. When you establish the initial payment schedule and your customer consents to the established billing dates, money is automatically placed into your business's bank account.
You and your customers can both save a reasonable amount of time and effort by using recurring billing. It reduces the amount of time needed for payment processing. The time and expenses associated with customer support are also decreased after establishing a relationship with your repeat customers.
Minimizes Late or Missed Payemnts
Automatic payments lessen the possibility of late or missed payments because they occur without your customer's involvement. Recurring payments take away the chance for error and because 46% of consumers say that they have paid a bill after the due date when they choose to make a one-time manual payment.