Recurring billing is when a merchant or service provider (collectively, vendor) invoices a customer for certain goods or services on a recurring basis and settles the invoice (compare Recurring Payment and Subscription Payment).

Recurring billing requires that the customer authorizes the vendor in advance to collect future recurring charges (invoice amounts) (e.g., by credit card, SEPA direct debit mandate or PayPal). This process is carried out until the customer withdraws the authorization.

Any product or service that is suitable for being subscribed to or rented on a regular basis is suitable for this purpose. It is irrelevant whether the prices/rate options (or a combination of both) remain the same or vary.