Recurring payments can help your business collect subscription, membership, installment, and repeat-service fees without manually invoicing customers every billing cycle.
The easiest way to accept recurring payments is with an all-in-one payment processor or merchant account that handles the payments but also has software to manage the billing process and security features to protect your customers’ information.
In this guide, I explain how to accept recurring payments, compare six providers to help you decide what’s best for your business, and show you how to set up automatic card or ACH billing for your business.
- Best payment processors for recurring payments at a glance
- How do recurring payments work?
- How to implement recurring payments
- Best recurring payment processors
- Comparing the best recurring payment providers
- QuickBooks Payments: QuickBooks users wanting payments connected to accounting
- Methodology: How I evaluated the best recurring payment providers
- How much does it cost to accept recurring payments?
- Who should use recurring payments?
- Benefits of recurring payments
- Frequently Asked Questions (FAQs)
- Bottom Line
Best payment processors for recurring payments at a glance
Provider | Best for | Monthly starting price* |
| Helcim | Low-cost recurring card and ACH payments | $0 |
| Square | Businesses needing recurring invoices and POS tools | $0 |
| QuickBooks Payments | QuickBooks users wanting payments connected to accounting | $0 |
| Wave | Freelancers needing bookkeeping and recurring invoicing | $19 |
| Stax Pay | High-volume businesses processing recurring payments | $99 |
| Stripe | Custom online subscriptions and billing workflows | $0 |
*Pricing reflects the lowest plan or account level that supports the relevant payment tools, but transaction and recurring billing fees may still apply.
How do recurring payments work?
No matter which processor or invoicing solution you choose to manage recurring payments, the basic steps are the same: customers enroll in a subscription or recurring billing invoice, and you bill them at designated intervals. Ideally, you will save the customer’s payment information on file, so the charges are automated.
How to implement recurring payments
Before signing up for a payment processor, have a clear idea of what your business needs. Creating an effective recurring payment strategy requires the right pricing and policies in place. Below are guidelines on how to accept recurring payments.
1. Establish your pricing model
Your pricing model will depend on your business. Recurring payments are used by businesses that offer subscriptions for services or products but the pricing model varies based on:
- The terms for installment payments (frequency and number of installments)
- Whether you offer free trials, and if so, how does it affect the monthly cost
- The terms and how customers qualify for discounts, if any
For example, your internet service provider may require you to make payments at the beginning of the service cycle. They can offer lower monthly fees if you pay for services a year in advance. They can also offer a seven-day free trial and/or a limited-time promo that gives you 50% off for the first three months.
Also Read: What Is a Subscription Business Model?
2. Set clear repayment policies
Create a clear outline of your repayment policy beginning with the payment terms and payment/collection method. While this is based largely on your pricing model, other particulars include interest, late payment fees, and partial payment options.
Also, consider the customer-facing aspect of your payment policies. What reminders will they receive? Will the payments be automatically charged or invoiced, or will customers receive a bill? Is the plan on auto-renew or will it need to be renewed?
This is also where you identify procedures for managing outstanding payments and failed collections.
3. Ensure pricing and terms transparency
Decide where and how to display your pricing and payment terms. Being transparent with your pricing and payment terms on your website often contributes to customers choosing to give you their business over a competitor. Having your policies clearly displayed and accessible right before checkout also protects your business from customer complaints and eventual chargebacks.
When applicable, also consider adding this information to your templates for contracts, customer invoices, and payment reminders.
4. Offer flexible payment methods
Whether you send out invoices or call customers to collect payments over the phone, you need to consider how you want your business to get paid. As a general rule, offering a variety of payment options allows merchants to sell to a wider customer base.
While most customers prefer to pay with credit cards, there is a growing number of consumers looking for other convenient modes of payment such as digital wallets and banking apps.
5. Check for compliance
As you will likely accept credit cards for recurring payments, it’s important that you are aware of and follow guidelines for credit card payments. This includes the way you process transactions, secure customer data, and store credit card information. The recurring payments process also requires customers to sign an authorization form.
Most businesses that offer memberships, subscriptions, and recurring invoicing also set up options for automatic payments. This requires saving customer credit card information, which requires an authorization form. Learn more about credit card authorization forms.
The Payment Card Industry (PCI) Security Standards Council ensures the protection of customer and credit card information by requiring merchants to conduct annual internal and external evaluations. Merchants who fail to comply are subject to fees and legal action.
Also read: Small Business Guide to Storing Credit Card Information
6. Provide outstanding customer service
Providing excellent after-sales customer support can be crucial to keeping a healthy state of recurring payments. If possible, offer 24/7 customer service and set up phone, email, and live chat support methods. Otherwise, ensure to respond to customer complaints within 24 hours.
Make sure to keep an organized record of customer accounts so it’s easy to address any misunderstanding. Follow up on any unresolved customer concerns with an email to confirm that you are actively working on the issue.
7. Choose the right payment processor
Invest in a payment processor that offers recurring payment tools matching your business needs. This includes the ability to create estimates that can be converted to an invoice, customize invoices for different business types, automate sending out reminders and receipts, and accept a wide range of payment methods. Some payment processors can also help you with PCI compliance, particularly for storing credit cards and encrypting data.
The right payment processor will also help you sign up for a merchant account that best suits your type of business. Learn more about merchant accounts.
Best recurring payment processors
To help you get started, I evaluated the top payment processing providers in the industry for their recurring payment features. I also included a step-by-step guide on how to set up recurring payments with each processor below.
Comparing the best recurring payment providers
Provider | Recurring payment features | ACH support | Pricing model | My score out of 5 |
| Helcim |
| Native | Interchange-plus | 4.55 |
| Square |
| Via invoices | Flat-rate | 4.49 |
| QuickBooks Payments |
| Native | Flat-rate | 4.26 |
| Wave |
| Native | Flat-rate | 4.26 |
| Stax Pay |
| Native | Monthly membership plus interchange | 4.11 |
| Stripe |
| Native | Flat-rate plus billing fee | 4.04 |
How I chose the best recurring payment processors
I compared 19 recurring payment providers based on the features that matter most when you're setting up subscription or repeat billing — current pricing, contract terms, supported payment methods, billing features, customer tools, and overall value. I then applied the same scoring rubric to each provider and selected the six strongest options for small businesses. See my full methodology below.
Why you can trust Fit Small Business
Fit Small Business follows an established editorial process focused on accurate, practical, and objective recommendations for small business owners.
I have evaluated payment processors, merchant services, invoicing platforms, and POS systems for more than six years. My assessments draw on hands-on product testing, provider demonstrations, pricing research, support documentation, and experience using payment tools in real business settings.
Helcim: Best Overall Solution for Accepting Recurring Payments
Why I Like Helcim
Helcim is a traditional merchant account service provider. There are no monthly fees, and the interchange-plus rates come with automated volume discounts. What’s more, Helcim does not charge extra for using any of its payment services, including billing management. And if you sign up for its ACH feature, you can use Helcim’s fee-saving service for online zero credit card processing.
Helcim pricing and recurring payment features
Software fees
- Monthly fee: $0
- Setup fee: None
- Contract: Month-to-month with no cancellation fee
Payment processing
- In-person: Interchange + 0.40% + 8¢
- Online: Interchange + 0.50% + 25¢
- Keyed/virtual terminal: Interchange + 0.50% + 25¢
- ACH: Starts at 0.5% (maximum fee applies)
- Recurring billing: Additional 0.4% per recurring transaction
Recurring payment features
- Helcim Zero-Cost Processing: Helcim offers a free credit card processing service called the Fee Saver. The system can automatically determine which zero-cost program can be used based on location and card brand. It has also recently launched a new smart standalone point-of-sale (POS) terminal that can be used for tableside, curbside, and other mobile payments.
- Automated recurring invoices: Create invoices that charge customers automatically on a daily, weekly, monthly, quarterly, or annual schedule. Helcim also supports automatic reminders and retry attempts for failed payments.
- Card and ACH subscriptions: Customers can pay recurring invoices using either credit cards or bank transfers, giving businesses more flexibility while helping reduce payment processing costs through ACH.
- Customer payment vault: Helcim securely stores customer payment information using tokenization, making future recurring payments automatic while reducing the need for customers to re-enter payment details.
How to Set Up Recurring Payments With Helcim
Helcim provides its users with detailed guidance on how to use the platform, including subscription management. It starts with creating a subscription plan, followed by adding a subscriber to a plan either manually or through an invoice.
Creating a subscription plan
You can view a list of your recurring subscription plans on your Helcim dashboard. This allows you to update and activate subscriptions that will appear on your website and customer portal. You can also manually add subscribers from here starting by clicking on the specific plan. (Source: Helcim) 
A menu will appear on the right-hand side of your screen after clicking on the subscription plan. Choose “Subscribers” and then click on “New Subscriber.” (Source: Helcim) 
Review the subscription details before assigning a customer to a plan. (Source: Helcim)
Since our last update: Helcim’s subscription manager is now available for all Helcim merchants at no extra cost. This feature makes offering subscriptions easier with a setup wizard for creating plans, recurring payments, and adding and managing subscribers with a few clicks.
Creating a recurring invoice
To add a new subscriber using a recurring invoice, create an invoice by going to the main dashboard, then click on Invoicing > Invoices. Click on the “New Invoice” button at the top right-hand corner of your screen. (Source: Helcim) 
You are then given options for the type of invoice you want to create. Another drop-down will appear to let you specify the status of the invoice (default status is “Due”). (Source: Helcim) 
Next, specify the invoice details and add the customer’s name before clicking on the “Save Changes” button. This will then automatically generate an invoice number. (Source: Helcim) 
You can then turn this simple invoice into a recurring invoice. Click on the “Actions” drop-down button and choose “Make Recurring.” (Source: Helcim) 
Specify the billing frequency along with the start date and number of payments/cycles and click “Create.” (Source: Helcim) 
This invoice update and confirmation will be sent every time a customer makes a payment for their subscription. (Source: Helcim)
Manually adding a subscriber
Go to the subscription plan list under Subscription Management and click on a specific plan. This will take you to the subscription plan details. Click on the “New Subscriber” button on the upper right-hand corner of the screen. (Source: Helcim) 
Enter the customer’s name by searching your customer database. Click “Add,” and you will be notified that a customer has successfully been enrolled to a new subscription. (Source: Helcim) 
An email notification will be sent to the customer, and you should be able to find their name listed under this subscription plan. (Source: Helcim) 
In cases where a customer forgets to pay their subscription, you can click on the subscriber name, and it will provide you with an option to generate a digital invoice that you can send as a reminder. (Source: Helcim)
Square: Best for businesses selling online and in person
Why I Like Square
Square’s invoicing feature is impressive. It comes with a card vault and a complete billing management feature that includes creating custom reusable templates, estimates that are auto-converted to contracts when accepted, milestone-based payment schedules, and more. The best part is that Square is easy to set up and use. It does not require a merchant application process like Helcim so you can start selling in minutes.
Square pricing and recurring payment features
Monthly software fees
- Square Free: $0
- Square Plus: $49
- Square Premium: $149
Payment processing
- In-person: 2.6% + 15 cents
- Online: 2.9% + 30 cents
- Invoices: 3.3% + 30 cents
- Keyed payments: 3.5% + 15 cents
- ACH invoices: 1% (minimum $1)
Recurring payment features
- Recurring invoices: Create invoices that automatically send and charge customers on a recurring schedule. You can customize billing frequency, invoice details, reminders, and automatic payment collection.
- Customer Directory: Store customer profiles, payment methods, purchase history, and contact information in one place. Returning customers can be billed automatically without re-entering payment details.
- Unified business platform: Square combines payment processing, POS, online sales, appointments, inventory management, and invoicing under one account. This makes it a strong choice for businesses that sell across multiple channels.
- Payments accepted: Credit and debit cards, Apple Pay, Google Pay, and Square Pay
- Multiple invoice types: Estimates, recurring invoices, card-on-file recurring billing, progress-based invoices, and multipackage invoices
How to Set Up Recurring Payments With Square
Square’s PCI-compliant payment system allows your customers to store their credit card information as a card-on-file in Square’s secure payments vault. Customers can enter this information via a link from your emailed invoice, or you can enter this on their behalf using your Square POS system or the virtual terminal in your online dashboard.
Recurring payments are triggered by Square’s invoicing function. When invoices are run, either individually or in a batch, any card-on-file customer payments are automatically charged. Customers are then notified of the payment via email with a “paid” invoice receipt.
Scroll through the images below for more details:
Manage Square invoices and accept recurring payments from the Square POS or Square Invoices mobile app, desktop dashboard, or virtual terminal. (Source: Square) 
From the Square Dashboard, select “Invoices” from the menu and go to “Recurring Invoices.” Click the “New Recurring Series” button to create a new recurring payment. (Source: Square) 
Add your customer’s information by entering their details or selecting from your Customer Directory. For recurring automatic payments, choose the card to charge from your customer’s available card information saved on their directory profile. You can check the button for “Allow Customers to Save their Card” if you want to give your customers the option to sign up for automatic payments. (Source: Square) 
Then, specify the recurring payment details: start date, recurrence frequency, and end date, plus any discounts. For recurring invoices, you can also specify sale or service date. (Source: Square) 
Once you hit send, the customer will receive the invoice in their specified email. (Source: Square) 
This window is displayed to the customer if you have checked on the box for “Allow Customer to Save their Card” option. (Source: Square) 
Recurring payments can be edited at any time with additional fees, payment terms, and more. (Source: Square) 
Customize your reminder strategy with an easy scheduling tool. (Source: Square)
The entire process is quick and requires minimal setup or ongoing management. Being invoice-based, Square’s recurring payments make it easy to process regular payments plus add-on charges as needed. Added fees can be entered as a separate invoice or combined with regular recurring charges—whatever fits the billing need.
Visit our step-by-step guide to sending Square invoices for more information.
QuickBooks Payments: QuickBooks users wanting payments connected to accounting
Why I Like QuickBooks Payments
QuickBooks Payments is my recommendation for businesses already managing their books in QuickBooks. Its main advantage is not simply accepting recurring payments. Payments made through QuickBooks are also matched with invoices and recorded in the accounting system, reducing the manual work needed to reconcile deposits and update customer balances.
The best fit is a service or membership business that wants its automated subscription billing connected to bookkeeping and accounts receivable. Businesses that do not need accounting software may find Helcim or Square easier and less expensive to adopt as standalone payment systems.
QuickBooks Payments pricing and recurring payment features
QuickBooks Online subscription
QuickBooks Payments works with QuickBooks Online, which currently has the following standard US list prices:
- Simple Start: $38 per month
- Essentials: $75 per month
- Plus: $115 per month
- Advanced: Higher-tier plan with added automation and controls
QuickBooks frequently offers introductory discounts, but the provider card should show standard list pricing rather than temporary promotional rates. QuickBooks Online plans include invoicing, and customers can pay eligible invoices through QuickBooks Payments.
Payment processing
- Invoice, recurring payment, or payment link by card or digital wallet: 2.8%
- ACH bank transfer: 1%
- Manually keyed transaction: 3.3%
- In-person payment: 2.3%
- Instant deposit: Additional 1.75%
QuickBooks states that there are no upfront fees, termination charges, or standard monthly processing fees. A QuickBooks Payments account is subject to eligibility and approval.
Recurring payment features
- Automatic accounting sync: Payments collected through QuickBooks can be matched with invoices and entered into the books automatically. This cuts down on duplicate data entry and makes it easier to track paid, unpaid, and overdue balances.
- Recurring invoices and payments: Businesses can schedule recurring invoices and allow approved customers to pay automatically. QuickBooks supports card and ACH collection for retainers, memberships, subscriptions, and repeat services. Its recurring invoice workflow also lets businesses choose a billing schedule and track invoice status from the sales dashboard.
- Multiple customer payment options: Customers can pay through an invoice using cards, ACH bank transfers, PayPal, Venmo, and supported digital wallets. Businesses can control which payment methods appear on each invoice.
How to accept recurring payments with QuickBooks Payments
Once you've connected QuickBooks Payments to your QuickBooks Online account, setting up recurring customer payments only takes a few minutes.
- Enable QuickBooks Payments. Connect or apply for a QuickBooks Payments account so customers can pay invoices online by card or ACH.
- Create a recurring invoice. Go to Recurring transactions, create a new invoice template, and choose how often it should be sent (weekly, monthly, quarterly, or annually).
- Turn on online payments. Enable credit card and ACH payments on the invoice, then send it to your customer. They can enroll in Autopay by securely saving their payment method.
- Monitor recurring payments. QuickBooks automatically creates future invoices, records successful payments, and syncs transactions with your accounting records. You can edit or stop the recurring schedule at any time.
Wave: Best for freelancers needing bookkeeping and recurring invoicing
Why I Like Wave
Wave is popular among freelancers and service professionals for its easy-to-use invoicing feature and native accounting software. You can create custom invoices, set up recurring billing for repeat customers with a few clicks, and switch between manual and automatic billing. The best part is that all payments are integrated into the bookkeeping feature, so you don’t need to manually record your transactions.
Wave pricing and recurring payment features
Monthly software fees
- Starter: $0
- Pro: $19 per month
- Pro annual plan: $190 per year
- Wave Advisors: Starts at $149 per month
Payment processing
- Starter card payments: 2.9% + 60¢
- Starter American Express payments: 3.4% + 60¢
- Pro card payments: 2.9% with no fixed fee for the first 10 monthly transactions, then 2.9% + 60¢
- Pro American Express payments: 3.4% with no fixed fee for the first 10 monthly transactions, then 3.4% + 60¢
- Bank payments: 1%, with a $1 minimum
Online payment acceptance is subject to Wave approval. The Pro subscription is charged per business rather than per user.
Recurring payment features
- Flexible recurring invoices: Wave lets businesses schedule invoices daily, weekly, monthly, yearly, or at a custom interval. Billing schedules can run indefinitely, end on a chosen date, or stop after a specified number of invoices.
- Automatic payment collection: Businesses approved for Wave Payments can let customers save a payment method and automatically pay future recurring invoices. Users can also switch between automatic and manual billing.
- Built-in bookkeeping: Invoice and payment data flows into Wave's bookkeeping records. Pro also includes automatic bank transaction imports and categorization, making Wave suitable for business owners who want a simpler alternative to using separate invoicing and accounting products.
How to accept recurring payments with Wave
The first step for accepting payments with Wave is to create a free Wave account. Once you’re signed up, you can choose to create individual invoices or set up a recurring invoice, including options to save your customers’ payment information. There are also options to build payment plans.
From the dashboard, you can see at-a-glance invoices that are past due, outstanding, unsent, or upcoming and when your next payout is. Like Square and PayPal, Wave can also be used to create and send estimates that can then be converted into invoices.
When you log in to Wave, create a recurring invoice from the menu on the top right. (Source: Wave) 
Create a new recurring invoice by adding your customer, product, and payment terms. (Source: Wave) 
Next, set the payment schedule. (Source: Wave) 
You can enter the customer’s payment info at this time, or ask them to add it when they receive the invoice. Either way, Wave will send a credit card authorization form for them to consent to ongoing automated payments. (Source: Wave) 
Finally, add the customer’s email address and an optional message. (Source: Wave) 
Check over the details, approve, and send the invoice to start collecting recurring payments. (Source: Wave)
Stax: Best for high-volume businesses processing recurring payments
Why I like Stax
Stax is a popular merchant account service provider for large-volume businesses. Like Helcim, it provides businesses with a stable merchant account and a complete range of payment processing tools, including billing management. With Stax, you can create custom invoices and set payment schedules based on your pricing model. It lets you accept both card and bank payment methods, with a secure card vault for storing payment information.
Stax pricing and recurring payment features
Subscription fees
Stax Pay uses subscription pricing based on annual processing volume:
- Up to $150,000 per year: $99 per month
- $150,000 to $250,000 per year: $139 per month
- More than $250,000 per year: Starts at $199 per month
- Higher processing volume: Custom quote
Card processing has no percentage markup over direct-cost interchange. Stax adds a flat fee of 8 cents for card-present payments and 15 cents for card-not-present payments. ACH processing is an optional add-on priced at 1% per transaction, capped at $10.
The subscription includes recurring billing, customized invoicing, card network tokenization, account updater, fraud protection, payment links, unlimited users, reporting, and in-house support. Stax states that it does not charge cancellation fees, though its pricing page references long-term contracts, so contract terms should be confirmed before signing.
Recurring payment features
- Recurring invoices and automatic collection: Stax Pay lets businesses create customized invoices, send them by email or text, and schedule them on a recurring basis. Customers can save a preferred payment method, allowing Stax to collect future payments automatically from the associated customer profile.
- Stored payment methods and account updater: Stax uses tokenization to store payment methods for future charges, eliminating the need for the business to handle raw card details. Its account updater can refresh eligible card information when a customer receives a replacement or updated card, helping reduce failed recurring payments.
- Membership-based processing: Rather than charging a percentage markup on each card transaction, Stax provides access to direct-cost interchange and adds a fixed per-transaction fee. This pricing model can produce savings for businesses processing enough monthly card volume to justify the membership cost.
How to accept recurring payments with Stax
- Choose a Stax Pay subscription. Your monthly fee is determined by annual processing volume.
- Create customer profiles. Add customer contact information and securely store an authorized card or bank payment method.
- Set up recurring billing. Create an invoice, choose the billing amount and schedule, and select whether the customer should receive it by email or text.
- Monitor payments. Use the Stax Pay dashboard to track recurring invoices, successful transactions, failed payments, refunds, and customer payment history.
Setting up an invoice through Stax Pay
Stax Pay is Stax’s payment processing service for small businesses. When setting up an invoice or recurring payment, you can opt to create a single invoice or a recurring transaction. If you want to set up a recurring payment or invoice, simply navigate to the invoice tab in the Stax Pay dashboard. From there, you can create a new invoice, enter the price you want to charge, and specify the invoicing or automatic payment frequency schedule for clients with their cards on file.
You have the option of sending recurring invoices that customers will need to click to pay or storing payment information on file and automating payments according to the set schedule.
From the dashboard, select the plus button from the upper right-hand corner of the screen and choose “Create Invoice.” (Source: Stax Pay) 
Enter the amount you are requesting payment for. You can also choose from your catalog item if applicable. For recurring transactions, click the “Set up Schedule” button to detail automatic payments. The button will open a window where you can enter the details and frequency for your recurring payment/invoice. Press “Continue.” (Source: Stax Pay) 
For invoices, you can set them up so that your customers have the option to pay by credit card or bank, add a tip, or partially pay the total amount. (Source: Stax Pay) 
Choose your customer name on file or add a new customer directly from setting up an invoice. (Source: Stax Pay) 
For recurring payments, select a payment method to set up for auto pay. Those creating either invoice and recurring payment will then select “Create as Invoice” to save the template. (Source: Stax Pay) 
For those creating a recurring invoice, review and select “Send.” You also have the option to email or send the invoice via SMS text message. (Source: Stax Pay)
Stripe: Best for custom online subscriptions
Why I like Stripe
Stripe leads the payment processing space when it comes to online payment customizations. Every merchant account gets access to Stripe’s developer tools to create custom payment gateways and subscription portals. This is particularly useful when accepting international payments, where you can configure your online page to adjust the language and currency based on your customer’s location. Stripe supports 135 currencies and local payment methods in 47 countries.
Stripe pricing and recurring payment features
Stripe Billing
- Pay as you go: 0.7% of Billing volume
- Monthly plan: Starts at $620 per month
- Monthly plan contract: One year, paid monthly
- Custom plan: Contact sales
The pay-as-you-go option has no recurring software fee. Monthly plans provide a set amount of Billing volume and charge an overage rate when the included amount is exceeded.
Stripe Payments
- Online card payment: 2.9% + 30¢
- ACH Direct Debit: 0.8%, capped at $5
- Additional international and currency-conversion fees: May apply
Stripe Billing fees are charged in addition to payment processing costs.
Recurring payment features
- Flexible subscription models: Stripe supports more than 15 built-in pricing models, including flat-rate, tiered, per-seat, usage-based, and hybrid billing. Businesses can also add coupons, trials, prorations, and scheduled plan changes.
- Revenue recovery tools: Smart Retries automatically attempts failed payments at times Stripe predicts are more likely to succeed. Businesses can also configure payment reminders, retry policies, and subscription status rules.
- Customer self-service portal: Stripe's hosted customer portal lets subscribers update payment methods, view invoices, change plans, or cancel subscriptions without contacting the business. A custom portal domain costs an additional $10 per month.
- Payments accepted: Credit and debit cards, e-wallet, ACH, e-check, and over 135 currencies
How to accept recurring payments with Stripe
Stripe recurring payments can work with most ecommerce platforms and blog sites. In fact, many online subscription box marketplaces like Cratejoy seamlessly integrate with Stripe as their primary payment solution.
Using Stripe, you can quickly attach subscription payments to most ecommerce platforms using its automated integrations. Or, you can create pop-up membership or subscription forms that you can easily embed in your blog or website pages, and even in emails and online apps.
From your Stripe dashboard menu, choose Subscriptions. (Source: Stripe) 
Add customer and product or service information. The preview on the invoice updates as you add your data. (Source: Stripe) 
Alternatively, you can also find your customer’s profile and click on the “Add subscription” button. (Source: Stripe) 
Specify subscription details including duration and when the monthly billing starts. (Source: Stripe) 
Click “Email invoice to the customers to pay manually” and specify when payment is due. Then click “Invoice payment page” and choose the payment methods you want to have available to your customer. (Source: Stripe) 
Customers receive the invoice via email with this embedded payment link. (Source: Stripe) 
Once the customer completes the payment, the Stripe portal displays a payment confirmation, and another email is sent for the receipt. (Source: Stripe) 
Stripe also includes automation settings for invoice and subscription follow-ups. (Source: Stripe)
Methodology: How I evaluated the best recurring payment providers
I evaluated 19 recurring payment providers using our in-house scoring rubric to identify the best options for small businesses that want to automate subscription, membership, installment, or repeat-service payments. I researched each provider's pricing, recurring billing capabilities, payment methods, customer management tools, and overall ease of use using official product documentation, pricing pages, knowledge bases, and support resources. I also considered my experience evaluating payment processors, merchant services, POS systems, and invoicing software for Fit Small Business.
- Pricing and contract (20%): I favored providers with transparent pricing, no long-term contracts, no cancellation fees, and low upfront costs. I also considered monthly software fees, processing rates, chargeback fees, and whether pricing offered good value for small businesses.
- Recurring payment types (30%): I evaluated each provider's recurring billing capabilities, including support for recurring invoices, automatic card payments, ACH payments, subscription billing, customer payment vaults, and flexible billing schedules.
- Core features (30%): Beyond recurring payments, I looked for features that make billing easier to manage, such as invoicing, customer management, virtual terminals, reporting, payment links, ecommerce integrations, accounting integrations, and mobile payment capabilities.
- Expert score (20%): My expert score reflects the provider's overall value, ease of use, scalability, customer support, and suitability for small businesses. I also considered how well each platform balances pricing, functionality, and day-to-day usability based on my experience reviewing payment processing and business software.
How much does it cost to accept recurring payments?
Recurring payment processing fees are typically a percentage of each transaction, sometimes combined with a fixed per-transaction charge. Some providers also charge monthly software, account, or automated subscription billing fees.
For example, Square uses flat-rate payment processing and does not charge a monthly fee for its basic account. Stax Pay charges a monthly membership fee but provides access to interchange rates without adding a percentage markup. Because the two providers use different pricing models, Square may be more economical for lower-volume businesses, while Stax Pay may offer better value as processing volume increases.
Businesses should compare the complete cost of each subscription billing system, including:
- Monthly account or platform fees
- Card and ACH processing rates
- Added subscription invoicing fees
- Chargeback and refund fees
- Hardware or virtual terminal costs
- Contract and cancellation terms
Also consider the other tools included with the account. Square offers POS, invoicing, ecommerce, and customer management tools, while QuickBooks Payments connects billing with bookkeeping and payment reconciliation. These added services may be worth more than a slightly lower transaction rate. Read our guide to credit card processing fees.
Who should use recurring payments?
Recurring payments work best for businesses that collect the same or similar amount from customers on a predictable schedule. The right setup may use recurring invoices, card-on-file payments, ACH debits, or a full subscription-based billing platform.
Invoice-based recurring payments
Invoice-based payments are suitable for:
- Service providers: Lawn care companies, cleaning businesses, personal trainers, consultants, and childcare providers can send repeat invoices and collect payments automatically.
- Tuition and lesson providers: Fitness studios, music teachers, dance schools, and tutors can use monthly subscription invoicing for regular student fees.
- Membership organizations: Gyms, clubs, associations, and loyalty programs can use automated billing for a membership-based business to collect dues without manually invoicing every member.
- Professional firms: Accountants, marketing agencies, IT providers, and legal firms can automatically collect monthly retainers.
Online recurring payments
Businesses that need to accept recurring payments online include:
- Subscription box companies: Sellers can charge subscribers automatically before shipping each scheduled order.
- E-learning businesses: Course providers can collect monthly or annual payments for continued access to classes and learning materials.
- Membership websites: Publishers and bloggers can restrict premium content to customers with active recurring memberships.
- Online service providers: SaaS companies, digital agencies, gaming businesses, mobile applications, and virtual service providers can use a subscription billing system to manage renewals and customer access.
Businesses selling products or services that renew automatically need subscription merchant services that support securely stored payment methods, customer authorization, failed-payment retries, and cancellation management. The easier it is for customers to enroll, update their payment information, and cancel, the easier the billing relationship is to manage.
Benefits of recurring payments
Saves administrative time
Automatic billing removes the need to create and send the same invoice manually every billing cycle. Businesses can automate subscription billing and focus staff time on customer service, sales, and operations.
Creates more predictable revenue
Memberships and subscriptions produce steadier revenue than one-time purchases. A subscription-based billing model also makes it easier to forecast cash flow based on active customers, renewal dates, and scheduled payment amounts.
Reduces late and missed payments
Automated subscription billing charges an authorized payment method according to a set schedule. This can reduce overdue invoices and the time employees spend following up with customers.
Supports better staff allocation
Automating payment collection reduces repetitive administrative work. Businesses can redirect that time and payroll expense to customer-facing activities, retention efforts, or sales.
Makes repeat purchases easier
Customers do not need to manually submit payment for every renewal. This set-it-and-forget-it convenience works especially well for essential services and memberships customers use continuously.
Supports business growth
A scalable subscription billing system can manage more customers without requiring an equivalent increase in billing staff. Advanced systems may also include payment retries, plan changes, customer portals, and subscription reporting.
Frequently Asked Questions (FAQs)
These are some questions I often encounter about accepting recurring payments.
How can I accept recurring payments online?
To accept recurring payments online, choose a payment processor that supports card-on-file or ACH billing, connect your bank account, create a recurring invoice or subscription plan, and obtain the customer's authorization. Providers such as Helcim, Square, QuickBooks Payments, Stax Pay, Wave, and Stripe support different forms of online recurring billing.
What is automated subscription billing?
Automated subscription billing is a process that creates invoices or charges customers automatically according to a set schedule. Depending on the platform, it may also manage payment retries, plan changes, prorated charges, renewal notices, and customer cancellations.
How do I automate subscription billing?
To automate subscription billing, select a processor with recurring payment tools, create your products or service plans, choose a billing frequency, obtain customer authorization, and enable automatic card or ACH collection. You should also configure failed-payment notifications and provide clear cancellation instructions.
What are subscription merchant services?
Subscription merchant services are payment-processing services that support recurring charges. They commonly include securely stored payment methods, card and ACH processing, recurring invoices, payment authorization, reporting, and tools for managing failed or canceled payments.
What is the difference between subscription invoicing and subscription billing?
Subscription invoicing focuses on creating and sending invoices on a repeating schedule. A subscription billing system usually adds automatic payment collection, customer plan management, payment retries, prorations, reporting, and self-service account tools.
What should I look for in a subscription billing system?
A good subscription billing system should support your preferred payment methods, billing frequencies, customer authorization process, and cancellation rules. Also compare transaction fees, monthly costs, failed-payment recovery, accounting integrations, customer portals, reporting, and support.
Is recurring billing suitable for membership businesses?
Yes. Automated billing for a membership-based business can simplify monthly or annual dues, reduce missed payments, and make revenue easier to forecast. Gyms, clubs, associations, learning programs, and membership websites can all benefit from recurring card or ACH collection.
Bottom Line
Based on my evaluation, I recommend Helcim as the best overall recurring payment processor for most small businesses. Affordability and flexibility are the key reasons Helcim tops our list for the best recurring invoice payment provider.
There are very few traditional merchant account service providers in the industry, and Helcim’s free account includes card-on-file payments, invoicing software with automation tools, a sleek customer portal, and a mobile app to accept payments online or in person.
