If you use Internet services or shop online, you'll no doubt know what a recurring payment is.

You know when you hire a service like Netflix? Have you ever thought about having to remember your monthly payments? To make this easier, the monthly fee is charged on a recurring basis.

Payment methods are becoming more efficient and practical every day, which we can't refuse.

Virtual payments emerged precisely to facilitate the relationship between buyers and customers, no matter where they are in the world.

As a result, the variety of payment methods is great and care should be taken when choosing a particular service, especially when it comes to recurring payments, which are based not just on a single transaction, but on many transactions over a given period. What is a recurring payment anyway?

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What is the definition of recurring payment?

To understand what recurring payment is, you should think about when you take out an online plan, it's like a subscription, i.e. a monthly (or fortnightly/weekly) amount for a time determined by the deal.

The companies that work with this payment method come from a wide range of backgrounds.

As mentioned above, knowing what a recurring plan is basically consists of understanding it as a very simple and practical tool for paying for the service provided.

This service, in this case, is what recurring sales are. Suppose you have a wine subscription site and each month your customer receives a different selection. Although the products may change, the subscription fee is the same and you pay it monthly. Programme the recurring payment and you're good to go.

It offers convenience for both the customer and the service provider. However, to achieve good results, your company must manage recurring payments efficiently.

So you may be wondering. Now that I know what recurring payment is, how does it work? What are the payment methods for this type of service? How can we carry out transactions practically and efficiently?

There are several ways to make recurring payments online. See below which tools are the best to use. Let's go?

Learn about the 3 ways of recurring payment!

Credit card:

The use of recurring credit card payments acts as a guarantee of payment for a service provided over a certain period.

The company usually makes an automatic periodic charge on the customer's bill, depending on the plan chosen.

This contributes to:

• Avoid possible delays or forgetting to pay.
• Avoid charging the provider interest or suspending services.

As well as providing convenience for the customer, it also gives the provider security, with more control over their earnings, knowing that payment will be made on a certain day of the month.

Another advantage of a credit card is that you can pay in instalments. You can subscribe to a magazine and pay in 10 consecutive instalments, for example, with a credit card.

The disadvantage of credit cards is the number of fees, such as revolving credit, annual fees, administration fees, etc.

Automatic debit from current account:

Automatic debit, as the name suggests, is an authorisation you give the bank to withdraw a certain amount from your account and transfer it to another specific account.

In short, automatic debit is a transfer scheduled for a day of the month of your choice.

Like a credit card, it also guarantees the customer that there are no delays and that the recurring payment is made on time. Good for the consumer and the provider.

Bank slip:

Another way to make a periodic direct debit is via your bank statement.

Boleto Bancário is a well-known tool on the market because it provides security, especially for those who like to use a physical boleto to defend themselves against any problems and/or disagreements with the service or payment provided.

The boleto is also ideal for people who don't have a credit card or who choose not to have a bank account, avoiding bank charges or other services that cause account debits.

One of the disadvantages of recurring payment by bank statement is the time it takes to recognise the payment, which can take up to 5 days.

The customer may even give up on the purchase or service due to possible inconvenience caused by the delay in processing their payment.

How do you keep track of all recurring boleto and card charges?

So, to understand what recurring payments are, you need to know what payment methods exist on the market. We saw earlier that credit cards, automatic debits and Boleto have their own peculiarities and facilities for both the consumer and the provider.

However, there is a very wide line between paying and verifying these payments and subscriptions, as long as the provider has to verify.

Online payments require attention, confidentiality and protection so that you don't lose control and your business thrives, avoiding higher costs and customer problems. It's worth investing in managing your recurring subscriptions!