What Are The Types Of Recurring Bills: Know Which One Suits You The Best

Because subscription-based business models are becoming more prevalent, companies need to pay increased attention to the payment options they provide to their clients in order to maintain and grow their customer base. Whenever it comes to the successes and failures of your company, the difference might be determined by how successfully you execute your payments plan. For this reason, getting a handle on the processing of recurring payments as soon as you possibly can is of the utmost importance.

How does it work?

Utilizing a payment service provider is the most straightforward approach to handling recurring invoices. These services are known as all-in-one payment solutions because they handle every aspect of electronic payments. This includes everything from gathering and analyzing recurring payments on behalf of the customers to having to take care of financial transactions as well as accumulating the funds into the business bank account of such merchants.

Types of recurring billing-

1. Regular or fixed recurring payments

Consumers pay the very same amount each month they make a fixed payment, also known as a regular payment. Instances of frequent recurring payments include payments for gym memberships but also magazine subscriptions, among other things.

2. Variable recurring payments

The term “variable recurring payments” refers to those wherein the amount of the payment varies information on the package provided during the period covered by the payment; some instances of varying payments usually involve your electricity bill and your mobile phone bill, most of which are based on your unique consumption patterns.

Usage-based billing

Usage-based billing is a sort of variable recurring bill in which the amount invoiced to the customer at every payment cycle is determined by the customer’s consumption of the service over the preceding billing cycle. The billing process for utilities is a classic example.

Quantity-based billing

consumers are charged based on an amount that has been previously agreed upon. For instance, if a company acquires software licenses for its employees, the employees may be invoiced on a monthly basis depending on the number of “seats” or logins that the business requires for that month. Since the majority of seats may fluctuate depending on the requirements of the business, this falls into the category of the variable recurring bill.

 Benefits of the recurring bill-

Cut down on late payments and collection

Businesses suffer losses when payments are made late since this harms both their income and their relationships with their customers. With the recurring bill, you only need to set up the system once, and then you can relax knowing that the collection of payments will be repeated automatically in accordance with the schedule that you choose. Your company will have more time to devote to other vital business duties since less time will be spent hunting down consumers for payments as well as having uncomfortable talks regarding customers’ late payments.


If you want to build strong, long-lasting connections with your customers and generate more revenue over the course of their lifetime, consider offering them the option to make recurring payments rather than just a one-time purchase. Your consumers have the ability to subscribe to many plans at once, which will both raise conversion and improve your company’s overall performance. In the end, recurring bills offer the comfort and convenience that you require, allowing you to concentrate instead on your business and the product that you sell.

How to pick the right recurring billing type?

The answer to these questions depends upon your business type, service, and your requirements. If the service or goods you provide fall into either of these categories, then you must go for that billing type.