How recurring payments work
A recurring payment is a payment scheduled under an ongoing customer agreement. The subscription defines what repeats and when; the connected payment provider handles the payment attempt and reports the result.
Quick answer
A recurring payment is a charge that repeats under an agreement the customer has already accepted. The amount and the timing come from that agreement until it changes or ends. Whether a charge needs customer authentication, and how the provider reports it, depends on the provider and the payment method.
Who does what
| Merchant | Billing platform | Payment provider |
|---|---|---|
| Sells the service and sets the recurring price | Schedules each charge from the subscription | Processes the payment attempt and reports the result |
| Decides what the customer is told and asked to do | Records the outcome and runs the configured next step | Handles the payment method under its own rules |
The next charge is scheduled
The subscription sets the date and amount of the next charge, based on the billing period.
The provider attempts the payment
The connected provider processes the charge and returns success or failure, with the reason it reports.
Success or failure drives the next step
A successful charge keeps the subscription active. A failed charge follows the configured retry and notification rules, described in the failed payments guide.
A $30 monthly plan
Hypothetical example: a customer buys a $30 per month plan on day 1. The first charge succeeds, the second charge runs on day 31 and the provider reports the result for each one. The subscription shows whether the next charge is due.
Provider differences
Payment methods and providers differ in how they authenticate, retry and report a charge. Check the behavior of the provider you use before you promise a specific flow to your customers.
Ready to put this into practice?
See payment integrations.