This article will discuss the benefits of recurring payments to your business. Additionally, this article will discuss what requirements a payment processor must meet in order to allow your business to process recurring transactions. Finally, this article will evaluate several options, including Paypal, Square, Stripe, and Payline. 

Benefits of Recurring Payments

Recurring payments offer your business a wide variety of beneficial options. They can be used for a wide variety of transactions, from streaming services to gym memberships. Many businesses can easily use recurring transactions to maximize their profits

These allow you to collect payments on a regular schedule from customers. Rather than depending on unpredictable sources of income, your business can create a known and consistent stream of income. 

There are two types of recurring payments, fixed and variable. Fixed recurring payments are when the customer is charged the same amount every time, while variable recurring payments change according to the amount or type of service used at a certain time. 

This type of billing can allow your business to retain customers over the long term. This occurs as recurring billing also allows your business to streamline your customer experience and increase long-term customer satisfaction

There is a decreased risk of failed payments with scheduled billing as the customer provides you with payment information prior to its purchase. By analyzing how your customers engage with your recurring payment options over time, you can customize your business method to suit your customers’ needs better. 

You will also need to process credit cards and ACH for recurring billing. ACH will allow you to charge your customer’s savings account directly, and you will require their prior approval to do so.  You will need a payment processor and merchant account in order to process recurring payments. 

Processor Requirements for Recurring Billing

Ability to Process ACH and Credit Cards

Being able to process ACH and credit card transactions is essential for any business that wants to use recurring transactions. You do not want to risk losing customers simply because your payment processor will not accept the customer’s preferred method of payment.

Ease of Set Up 

Your business should not have to spend an extended amount of time setting up a recurring payment option for your customers. As such, it would be ideal to find a payment processor that can set up the entire recurring billing system for you in as little time as possible.

PCI Compliant

It is essential that all your transactions, whether they are recurring or not, are secure. To ensure this, it is crucial to go with a payment processor that is PCI Compliant. Unfortunately, many processors charge you an extra fee for PCI Compliance, while some do not. 

This security is especially important as recurring transactions have a higher risk of fraud as the customer is not physically paying with their credit card. 


There are typically higher transaction costs for recurring payments as they are card-not-present transactions. Before choosing a payment processor, be sure to check their per transaction cost for card not present transactions. 

Additionally, it is important to see what a processor charges you per transaction ahead of time. Transparent and affordable pricing from your payment processor is essential for maximizing recurring payments’ potential.

Free Trial

The ability to use a free trial with a payment processor is essential as it allows you to test out and fine-tune the system for your business for no additional cost. In addition, you can evaluate whether a given processor is right for you on your own terms. 

Processors That Offer Recurring Billing


Stripe offers a high level of security for your transactions and allows you to easily accept ACH, credit cards, and international transactions.  Unfortunately, with Stripe, it takes longer to set up than other payment processors and can be tricky to maintain if you do not have the proper technical knowledge.


Square has some advantages for conducting recurring payments. First, the app is free to download on Android and iOS. Additionally, Square has automated payment reminders and is easy to set up. However, they do not offer recurring payment options for ACH payments. 


Paypal allows you to accept recurring payments and bill customers for online subscriptions easily. Additionally, Paypal allows you to have fast access to your funds, unlike other payment processors who may hold your funds for a set period of time. However, with Paypal, you will have to pay extra for recurring payments and set up a different account


With Payline, you have access to low and transparent pricing options. Additionally, we do all the work to set up your payment processing. We will have everything ready for you within the same day. We also offer a free trial so you can try out Payline on your terms for no extra cost.  

Payline can process both ACH and credit cards so you can offer your customers a wide array of payment methods that best suit them. Payline is also PCI compliant and secure. Unlike other payment processors, we do not charge you extra to ensure the security your business needs to function. 

We also offer top-of-the-line customer service to ensure that your ability to collect any payment method from customers is not interrupted. 

Price Comparison

As recurring transactions are card not present transactions that come with higher per transaction costs, it is essential to compare the prices from processor to processor. For example, you can see below that Payline offers much more affordable per transaction costs than other processors such as Stripe, Square and Paypal. 

Payment Processor Card Not Present Transaction Cost
Stripe2.9% + $0.30
Square3.5% + $0.15
Paypal2.99% + $0.49
Payline0.75% + $0.20


Recurring payments offer a wide variety of benefits to your business. They can ensure a steady source of income, decrease the number of failed transactions, and allow you to maintain customers for extended periods of time. There are many factors to consider when evaluating a potential payment processor for recurring billing. 

These factors include ease of setup, pricing, and free trial. While other processors such as Stripe, Square, and Paypal offer some benefits, Payline outstrips them with an incredibly easy-to-use system, affordable pricing, free trial and top-of-the-line customer service. 

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