What is recurring billing? How subscription payments work
By SendPay Business · · 2 min read
Recurring billing is charging a customer automatically on a repeating schedule, such as every month or every year, until they cancel. It's how gyms, software, memberships and streaming services get paid.
Common models
- Flat rate: the same price every period.
- Tiered: different plans at different prices.
- Usage-based: the bill depends on how much was used.
- Annual prepay: a year up front, often at a discount.
Why payments fail
Cards expire, get replaced or hit their limit, and banks sometimes decline payments they think are unusual. Failed payments are a big cause of customers leaving without meaning to, so good billing retries the payment and reminds the customer to update their details.
What to look for
Clear plans and prices, an easy way for customers to change or cancel, automatic receipts, reminders before annual renewals, and reports that show how many customers join and leave each month.
Where SendPay fits
SendPay platforms include subscriptions, payment links and invoicing under your own brand, powered by licensed partners. You can preview your platform before you pay.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
What do failed subscription payments cost me?
Work out what failed renewals cost a month and a year, and what winning more back is worth.
Failed subscription payment calculator →How much should a mid-cycle plan change cost?
Use the free calculator to work out the prorated charge or credit.
Proration calculator →Should I offer annual pricing?
The free calculator compares yearly and monthly plans.
Annual vs monthly pricing calculator →What is a customer worth over time?
The free calculator works out lifetime value.
Customer lifetime value calculator →What is a Direct Debit?
The UK way to collect regular payments from a bank account.
What is a Direct Debit? →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.