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What is Recurring Billing?

kritika Published on : 27 October 2021
What is Recurring Billing


Recurring billing is a must for organizations that provide services requiring customers to pay a set amount for every interval. 


What is Recurring Billing?

Recurring billing is a payment method through which business owners can charge their customers at a regular interval; this interval is fixed, but it can vary depending on the plans a business owner presents, such as weekly, monthly, or bi-monthly. For recurring billing to happen effectively, it is needed that customers provide their billing information to business owners at the start of the billing cycle, i.e., the first time a customer is buying the service. This helps the merchant receive the money without going through all the paperwork related to billing every month. As for customers, they don’t have to put in extra effort every month to buy the same product from the same vendor.  


Is Recurring Billing Good?

Recurring billing is considered one of the best payment methods for services that require repetitive payments. 

For example, if you get a subscription for an OTT platform, then it means that you have to pay the bill monthly. In this scenario, what would you prefer? Visiting the billing page monthly, filling in all your details, making sure everything is correct, and then paying the amount? Or, save your billing information once and then pay it automatically? The latter option is much more feasible than the first one.

This is the reason that many people say recurring billing is good and should be adopted by businesses anywhere they can. 


Types of recurring billing


Types of Recurring Billing

There are mainly two types of recurring billing methods, which are fixed and variable recurring billing. 


Fixed Recurring Billing 

When the same amount is collected from the customer at a regular interval, then it is called fixed recurring billing. For example, when you buy a monthly subscription for a newspaper or dance class. The amount that you have to pay for the entire year is the same, and the duration too. 


Variable Recurring Billing 

In Variable Recurring Billing, customers pay different amounts at a regular interval. There are many reasons why a customer has to pay different amounts, one of them is the changing price of the product, and the other one is that it can depend on the usage of the service. For example, internet subscriptions or milk subscriptions are both subjected to quantity usage. 


Recurring Billing FAQs


1. Is Recurring Billing and Subscription Billing the same thing?

Yes, recurring billing and subscription billing is the same thing. The only difference is that with recurring billing, the price for a product or service is the same for all, while there are different plans in subscription billing.


2. How do I stop Recurring Billing Charges?

If you want to stop any recurring billing charges, you must always connect with your service provider first. Else, you can also connect with your bank for the same. Canceling or pausing a recurring billing payment is easy and won’t take long.


3. Is Recurring Billing and Recurring Monthly Payments the same thing?

Yes, recurring billing and recurring monthly payments are the same things. The terminologies, sometimes, can get difficult to understand, but it is the same thing.



Recurring billing is beneficial for both the merchant and the customer. It helps save time, build trust, and the billing procedure can be done without any difficulties. So, if you are a merchant/business owner looking for an alternative for their billing methods – opt for recurring billing.

Take the 14-day free trial of Muvi Billing to explore how you can optimize recurring billing in your service.


Written by: kritika

Kritika Verma is an Associate Content Writer and works with Muvi Marketing Team. She is an inbound marketing professional and ensures high-quality traffic on the Muvi website through her blogs, articles, and more. She has an engineering background but always had a knack for writing. In her free time, she is either on Quora or on (Mostly losing).

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