Recurring payment
Recurring payments charge an authorised payment method at agreed intervals. Amount, payment attempt and service status remain separate.
What is a recurring payment?
A recurring payment is an agreed, repeated charge to a payment method authorised by the customer for that purpose. Intervals are set in advance; amounts may stay the same or change with usage, for example, depending on the agreement. A subscription is one possible use case. The payment schedule describes when money is to be collected and for what; a scheduled collection is not the same as a successful payment.
A fictional maintenance-planning application is billed monthly. The intended charge fails during the next monthly run. The planned handling process keeps the receivable open and links further payment attempts to the same billing month. In this example, retrying must not create a second receivable for the same monthly service. How an outstanding amount affects software access depends on the agreed service and handling rules; the failed attempt alone does not determine it.
Sources
Related terms
- Subscription commerceIn subscription commerce, customers receive products or services on a recurring basis. Delivery or usage plans and billing need to match.
- Payment service providerA PSP supports businesses with electronic payments. Payment methods, processing and additional services depend on the offering.
- Strong customer authenticationSCA combines independent evidence to authenticate the payer. Successful authentication must be distinguished from payment status.
- Digital walletA digital wallet uses saved payment methods or a wallet balance for payment. Device support and the shop integration must work together.
- Buy now, pay laterBNPL enables a purchase with later payment or instalments. The customer’s payment plan and settlement with the merchant are considered separately.
- Pay by invoiceWhen customers pay by invoice, they receive goods or services and pay later by the agreed due date. The invoice and receipt of payment are tracked separately.
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