A recurring payment is a feature that allows the merchant to charge a payment automatically, without the customer having to make the payment themselves.
You will most often come across this feature with services paid through monthly fees, such as subscriptions.
How is a recurring payment set up?
A recurring payment is set up during a standard payment. You make the payment and, once it has gone through, the payment gateway notifies you that you have set up a recurring payment. The notification also shows a summary of the most important payment details, such as the amount and the frequency of recurrence.
Money can be charged in 2 ways – automatically and on demand.
Automatic charging
An automatic recurring payment works like a standing order, where the same amount is charged at regular intervals.
The payment then works on a direct debit principle. As the customer, you confirm that you agree with the amount and frequency of the charges, including the end date.
After the first, initiating payment, all the others happen automatically. You do not have to deal with anything and simply enjoy the service.
💡 GoPay tip:
You will most often come across recurring payments with services such as subscriptions. The service provider may offer you a free trial period, after which charging begins.
Recurring payment on demand
With on-demand payments, the amount and the frequency of charging vary. It depends on how the e-shop has set the payment up.
The payment works on the same principle as the first type. As the customer, you confirm during the first payment that you agree to the amounts being charged and to the end date.
After the first, initiating payment, all the others happen without any action on your part. You do not have to deal with anything and simply use the service you paid for.
💡 GoPay tip:
You can end a recurring payment at any time by following the steps given here.