How Does Recurring/Subscription Billing Work?

Monthly Recurring Billing: Guidelines and Tips

How does recurring billing work? This is a question many people ask themselves when considering using this type of billing. The answer isn’t always easy to find, but us from BlueSnap are going to do our best to make it clear and understandable.

First, let’s discuss what recurring billing is and why you might want to offer it on your website. Recurring billing allows customers who have signed up for an account with your company, or downloaded one of your products/services, the ability to automatically pay a fee (usually monthly) until they decide not too anymore.


Recurring Billing cycles are the length of time in which you want your customers to be charged. For example, if you set it up for every 30 days and someone cancels their subscription on day 29, they won’t have to worry about being billed again until the next month. If they decide not to renew at all then there will no longer be any fee assessed from them each month after that point. You can also choose monthly or yearly as well. We recommend choosing one option only so people know what kind of commitment it takes when signing up for an account with you.

It is important to note that with any type of recurring billing, the customer is always in control. They can stop their subscription at anytime without worrying about being charged for anything more than what they were billed before cancelling (unless you offer a refund policy).

It’s best to have a clear, understandable billing process in place so that customers know what they’re signing up for and how often you’ll be charging them.