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Recurring billing happens when a merchant automatically charges a customer for goods or services on a prearranged schedule. Recurring billing requires the merchant to get the customer’s information and permission. The vendor will then automatically make recurring charges to the customer’s account with no further permissions needed.

A recurring billing system provides a consistent and reliable cash flow for a business. This helps the business owner to predict the revenue that will be generated in a specific time frame.

In a recurring billing system software, the process of charging customers recurrently is entirely automated. Once the invoice is created, the payment cycle is set, and the customer’s payment information is linked, the customer will be billed and charged for the service without any further manual intervention. This automated mechanism saves both the business owner and the customer from doing the same task every billing cycle.

Recurring billing provides a benefit to subscribers who don’t have to worry about another monthly bill to stay on top of – or risk missing out on delivery of a product or service. Instead, with recurring billing, the subscriber is guaranteed to have continuous service.

In a recurring billing system, customers only need to sign up and provide their payment information once, with the understanding that the business owner will be paid automatically for the services they provide.