Betting on recurring payments can be highly profitable for your company. If you want to guarantee good results, you need to know the potential of this modality and the shortcuts to gaining and maintaining a good number of subscribers.

Various services or products can be adapted for recurrence, guaranteeing several advantages for the company.

Therefore, if you want to know more about recurring payments and everything this concept can provide, read this article on E-Complish until the end.

What Is A Recurring Payment?

Recurring payment processing is the business model based on the delivery of products or provision of a service in which the consumer becomes a subscriber, paying an amount per period.

Generally, the charge is monthly, but it can also be daily, weekly, fortnightly, or even in longer periods, such as bimonthly, semesters, and years.

Some examples are school fees or other services, such as gyms and parking. Recurrence can also appear in health plans, newspaper or magazine subscriptions, and service contracts such as software, consulting, and law.

With the advancement of technology, tools on the market automate these charges, making this modality very attractive. Companies that adhere to this modality are considered recurring businesses.

How Does Recurring Payment Work?

Recurring payment works by automatically charging the subscription fee each month (or another period, if applicable). The customer can choose their favorite payment method from a series of options. As long as he is a subscriber, the company delivers the product or service, and billing is fully automated. In case of default, the platform itself already has an action protocol that, in most cases, resolves the problem without giving the business manager any headaches.

What Is The Difference Between Installment And Recurring Payment?

Installments differ from recurrence because they have a specific value for a single sale. This amount is divided into installments, a process with a beginning, middle, and end. Unless the company chooses to bear these expenses, these installments may have added interest.

Recurrence is a continuous payment for periodic deliveries and renewals, which lasts as long as the customer wishes to maintain the subscription. When contracting the recurring solution, deadlines, payment dates, and conditions for possible cancellation are stipulated.

Recurring Payment Method Options

Recurring payments can be made through different means. We will show below the main ones.

Credit Card

This is one of the most popular types of recurrence. Payment can be programmed to be made without needing action from the customer, avoiding default and giving the user more comfort.


Another advantage for the consumer is not compromising the credit card limit, as each charge is entered separately.

Automatic Debit From Current Account

This is the safest format to avoid default, as the payment amount is withdrawn directly from the user’s account. To do this, the consumer authorizes the collection at the subscription time. 

Some companies even offer benefits to customers who choose this modality.

Bank Slip

The bank slip is the most democratic alternative, as it is the only way to bring repayment to those who do not have a bank account. Does it seem strange that someone doesn’t have access to banking services?

Unfortunately, this is a reality: more than 34 million “unbanked” people are in the country, as shown in this report.