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    Recurring Payment

    A recurring payment is an automated charge to a consumer’s credit or debit card that occurs on a regular basis or for a period of time.

    What Is a Recurring Payment?

    A recurring payment saves both consumers and businesses time and money. They enable the consumer to sign up for regular transactions that automatically deduct from their account at regular intervals for a period of time. 

    Subscriptions are a popular form of recurring payment. When a consumer signs up for a subscription, they receive weekly or monthly benefits, products, or solutions — such as access to a streaming platform, a product box that comes in the mail each month, or a consultation from a brand representative. During the sign-up process, the consumer enters their personal and payment information, and the system automatically completes the transaction at each interval.

    A recurring payment offers consumers the convenience of not having to initiate a transaction at every purchase. On the business’ side, recurring payments help retain customers and provide consistent revenue over time. Ecommerce businesses can use recurring payments to provide seamless, loyalty-boosting customer experiences.

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