Recurring card payments on debit: guide to setup and benefits
In today’s digital world, subscriptions are becoming an integral part of everyday life. According to recent research, the number of BNPL users will reach 91.5 million in 2025, and the annual increase in the total volume of regular payments is estimated at 9%. Recurring card payments, which are automated debits of funds according to a set schedule, are becoming increasingly important. Let’s take a closer look at how these payments work, what benefits they bring to businesses and customers, and how to organise their implementation effectively.
What are recurring debit card payments?
Recurring payments on debit card is the automatic debit of a certain amount at a predetermined time. This model is used in e-commerce, online services, online schools, and businesses where payment for subscriptions or other services is provided.
Using regular payments frees customers from having to fill out a form for debiting money every time. It is enough to indicate your details once, familiarize yourself with the schedule and agree to periodic write-off. Using this model, a business can plan a budget and ensure a stable cash flow.
How does it work in practice?
The recurring payment process consists of a few simple steps:
- Customer authorisation. The user agrees to repeat charges once, for example, when registering on the platform or purchasing a subscription.
- Payment token storage. Instead of storing card numbers, tokenisation is used – replacing real data with a unique encrypted identifier that complies with PCI DSS requirements.
- Automatic debit. On the selected date, the system initiates the payment itself, debiting the required amount from the customer's card.
- Funds crediting. The money is credited to the company's account, and the client receives a notification of the transaction.
Regular payment parameters
The main parameters that determine the regular payment scheme:
- Frequency: monthly, weekly, quarterly or annually.
- Payment amount: fixed or dependent on the volume of services provided.
- Duration: indefinite (until cancelled) or limited in time.
- Notifications: automatic alerts to the customer about upcoming debits.
Where are recurring payments used?
Recurring payments are most common in the following areas:
- Online services (streaming, cloud storage, subscription software).
- Telecommunications (internet, television, mobile operators).
- Educational platforms (online courses, webinars).
- Fitness clubs and sports apps.
- Charitable donations.
- E-commerce (subscription boxes, cosmetics, food).
Differences from direct debit
There is often confusion between recurring payments from a card and direct debit. Below are the key differences.
| Criterion | Regular payments from a card | Direct debit |
|---|---|---|
| Initiator | Company (based on a saved token) | Customer’s bank (under a signed mandate) |
| Enrolment period | 1–3 working days | Up to 5 working days |
| Customer management | Via the service interface or bank | Only through revocation of the mandate |
| Commission | Percentage of the amount, usually 1.5–3.5% | Fixed rate + commission |
| Flexibility | Easy to change | Requires mandate renewal |
| Risk of chargebacks | High | Low |
Recurring card payments are ideal for digital products with international users, while direct debit is preferable for local markets with fixed tariffs.
Who will be using the subscription model in 2025
Key industries and dynamics:
- SaaS and cloud services. In 2025, the market is estimated at $578 million.
- Media and entertainment. Streaming platforms are growing by 18% annually, with 60% of users having 2+ content subscriptions.
- E-commerce. Subscriptions for essential goods (cosmetics, food) – 35% growth, automation of repeat orders through recurring payments.
- Fintech. Regular investments and savings – 50% customer growth, micro-subscriptions for financial advice and portfolio analysis.
- Education. Online courses with monthly payments – 28% growth. Corporate subscriptions for staff training.
- Health and wellness. Fitness apps and telemedicine – 40% growth, subscription boxes with dietary supplements and vitamins.
This growth is driven by the benefits that businesses gain from using the subscription model and implementing regular card payments.
Accounting automation
Reduction in accounting workload by up to 40%. Reduction in operating costs. Integration with CRM and ERP systems.
Stable financial flow
85-90% accuracy in revenue forecasting. 60% reduction in cash gaps. Access to financial instruments for future payments.
Business scalability
Work with more than 70 currencies. Support for over 100 payment methods. Compliance with international standards (GDPR, PSD2, CCPA).
Reduced customer churn
Increased customer loyalty (70% stay longer than six months). Personalised notifications and promotions.
Audience analytics and segmentation
In-depth analysis of consumer behaviour. Testing of various pricing models (A/B testing). Creation of individual tariff plans (‘family’, student and other options).
Security and legal transparency
Automatic receipts and confirmations. Transaction history for dispute resolution. Compliance with tax obligations.
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Recurring payments vs Direct debit
Recurring payments and direct debit are two ways to automate periodic debits, but they have fundamental differences.
Direct debit assumes that the recipient initiates repayment from the payer’s account based on a pre-issued order. The payer sets only general conditions, the amount and date of the debit may vary.
Periodic payments are pre–programmed repayments for a fixed amount, which the payer sets independently.
Advantages of regular pay:
- Full control of the payer: you set the amount, date and frequency of payment yourself.
- Transparency: there is no risk of unexpected write–offs - everything is strictly on schedule.
- Flexibility: it is easy to change or cancel a payment at any time.
- Security: you do not need to provide access to the account to third parties.
- Versatility: they work with cards and electronic wallets, do not require a bank mandate.
Recurring payments provide more control and predictability, reducing risks for the payer.
How to set up recurring payments: step-by-step instructions
To successfully implement recurring payments, follow these simple recommendations
Step 1. Select a payment provider
Evaluate providers based on the following criteria:
- Support for the necessary currencies and payment methods.
- Commission rates and terms of cooperation.
- Availability of a high-quality API for integration.
Step 2. Organise card tokenisation
Store only tokens, not actual card numbers. Use modern data encryption. Update security certificates in a timely manner.
Step 3. Determining the payment schedule
Set an appropriate payment frequency. Create trial periods (e.g., 7 days of free use). Set up automatic renewal with advance notice (3 days).
Step 4. Writing the subscription terms
Clearly state:
- Subscription cancellation rules (minimum steps).
- Procedure for notifying about tariff changes.
- Refund policy.
Clearly state:
Step 5. API integration
Set up webhooks for notifications. Send automatic receipts. Synchronise data with CRM and accounting systems.
Step 6. Testing the process
Making test payments. Checking the accuracy of notifications. Correcting errors (insufficient funds, blocked card).
Step 7. Launching marketing
Surveying subscribers on the website and social networks. Launching bonuses for the first balance top-up. Collecting feedback for further service improvement.
Want to launch recurring payments without any hassle? Connect BillBlend: support for 70+ currencies and 100+ methods, integration with CMS (Shopify, WooCommerce), subscription management, real-time analytics, powerful fraud protection using artificial intelligence.
Problems and their solutions
Even the most sophisticated system encounters difficulties. The most common problems and how to solve them.
High commissions
Compare the rates of different providers. Choose models with a decreasing interest rate as turnover increases. Pay attention to hidden fees (penalties for failed attempts, currency conversion).
Chargebacks
Clearly state the terms of the subscription. Send notifications 24–72 hours before the charge. Keep proof of customer consent (logs, screenshots of forms).
Technical failures
Work with providers that have an uptime of at least 99.9%. Set up backup payment channels. Run API tests periodically.
Changes in legislation
Keep track of changes to PCI DSS, PSD2 and other regulatory standards. Update software and certificates in a timely manner. Consult with lawyers when entering new markets.
Loss of customers due to inconvenience
Make the unsubscription process as simple as possible (1–2 clicks). Offer a flexible pricing system (monthly, annual with bonuses). Implement personalised notifications and reminders. The average failure rate is 10-15%.
Conclusion
Regular debit card payments are not just a convenient service, but a powerful tool for transforming your business. Thanks to them, entrepreneurs get:
- Significant savings in time and resources.
- The most accurate revenue forecast possible.
- The widest possible geographical coverage.
- Reduced customer churn.
- In-depth analytics and personalisation.
The BillBlend platform facilitates the implementation of recurring payments by automating processes, enhancing security, and providing powerful analytical tools. Ready to increase your profits and attract loyal customers? Sign up for a BillBlend consultation now and get a prompt response from technical support.
Frequently asked questions
Can I set up a free trial period before auto-renewal?
Yes, you can set up a trial period. You can set the duration from 7 to 30 days and send the customer a notification 3-5 days before the first payment. It is important to provide an easy way to cancel the subscription without penalties.
What should I do if the customer's card is invalid?
Recommended actions:
- Automatically send the customer a message asking them to update their payment details.
- Offer alternative methods (e-wallets, QR codes).
- Use retries – repeat attempts to charge after 1, 3 and 7 days.
How to reduce the number of unsuccessful payments?
Effective measures:
- Use notifications (SMS, email, push messages) before each debit.
- Use retries at the optimal time of day.
- Dynamic CVV codes on cards increase the likelihood of a successful transaction.
- Multi-product tokenisation (backup storage of several customer cards).
Why is card tokenisation necessary?
It is a mandatory requirement of the PCI DSS standard. Tokenisation protects confidential customer data, replaces the actual card number with a unique identifier, and simplifies compliance with regulatory requirements.
What fees are charged for regular payments?
Typical fees include:
- Percentage of the transaction: 1.5–3.5%, depending on turnover and region.
- Fixed fee for failed attempts: £0.1–0.5.
- Currency conversion fee: 0.5–2%.
- Subscription fee for access to API and analytics tools.
Can recurring payments be stopped?
Yes, customers have the right to stop recurring payments at any time. It is your responsibility to ensure that subscriptions are easy to manage (1–2 clicks in the personal account), confirm the cancellation in writing or by SMS, and stop subsequent debits from the nearest date.
