Recurring payment

What are recurring payments?

Recurring payments are automatic charges made to a customer’s payment method on a regular schedule, such as weekly, monthly, or annually. Once the customer authorizes the payment, it continues until the subscription or service is canceled.

This billing model is often used in subscription-based businesses, memberships, SaaS platforms, and installment plans. It helps ensure uninterrupted service for customers and predictable revenue for businesses, while also reducing the need for manual payment actions.

How do recurring payments work?

Customers provide payment details once, and the merchant charges the account on a recurring basis through a secure payment processor. Payment schedules, frequencies, and billing amounts are typically agreed upon during signup.

Benefits of recurring payments

• Ensures consistent cash flow for businesses
• Improves customer convenience
• Reduces late or missed payments
• Supports predictable revenue forecasting

Recurring payments examples

• Monthly Netflix subscription
• Gym memberships
• SaaS billing (e.g., Shopify, Zoom)
• Magazine subscriptions
• Auto-renewal for cloud storage services

Driftcharge Tip

Make sure to provide clear cancellation options and email reminders before upcoming charges to build trust and reduce chargebacks.

Ganesh Pawar

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Ganesh Pawar is the founder of Driftcharge, a subscription management app designed to help Shopify merchants streamline and scale their subscription businesses. With a deep focus on solving real-world pain points—like legacy account page support, flexible subscription options, and advanced analytics—Ganesh is passionate about building tools that drive growth and retention.