Site Navigation

What is a recurring transaction?

re - cur - ring trans - ac - tion
noun

Recurring transactions refer to charges that are regularly applied to a cardholder's account at specified intervals for services or products that are ongoing in nature, such as memberships or subscriptions. These recurring charges are designed to provide convenience to customers while ensuring seamless and continuous access to the desired services or products.

How does a recurring transaction work?

In a recurring transaction, a consumer makes a purchase of a product or service. Instead of paying a lump sum upfront, the merchant sets up a schedule for periodic payments, typically, on an annual or monthly basis. This setup continues until the customer chooses to end the service or until the full amount is paid off for physical goods.