What is Recurring Billing?
Definition
An automatic payment system that charges a customer at predetermined intervals for ongoing access to a product or service.
Understanding Recurring Billing
Recurring billing is the mechanism that powers subscription businesses. When you subscribe to a service, your payment method is charged automatically on a set schedule — typically monthly or yearly. This eliminates the need to manually pay each billing period.
While convenient, it can lead to forgotten subscriptions and unexpected charges. Tools like TrackMySubscriptions help you monitor all recurring charges in one place and alert you before payments are processed.
Related Terms
Subscription
A recurring payment arrangement where a customer pays at regular intervals to access a product or service.
Billing Cycle
The recurring time period between billing dates for a subscription service, such as monthly, quarterly, or yearly.
Auto-Renewal
A feature that automatically renews a subscription at the end of each billing cycle without requiring manual action from the user.
Payment Method
The financial instrument used to pay for a subscription, such as a credit card, debit card, PayPal, or bank account.