What is recurring billing? How subscription payments work
By SendPay Business · · 2 min read
- 1Set up the plan once
- 2It renews on the same day each month
- 3Payments arrive without chasing
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
Tap to explore
Tap each one to see what it means.
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.
Try it
Name your platform and watch it come to life
Type a name, tap a colour and pick what it does. The phone changes as you go.
Colour
What it does
Design and preview your whole platform free, then launch when you are ready.
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 launch.
How it works
Your own money app- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
Why sign up
Create your free SendPay account
It's all about creating your own financial platform with ease. Start with a free account today.
- 🪪A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
- 💳Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
- 🌐A free business websiteFree to build, free to publish and free to keep, with unlimited visits.
- 🚀Your own financial platformDesign and preview your whole platform free, then launch when you are ready.
SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
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
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
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. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.