Recurring Payment Service Overview

Overview

The Recurring Payment Service enables you to process subscription billing and manage recurring payment mandates. Once a customer has set up a mandate (through the Payment Service's SetupRecurring), this service handles subsequent charges without requiring customer interaction, making it ideal for SaaS subscriptions, membership fees, and automated billing scenarios.

Business Use Cases:

• SaaS subscriptions - Charge customers monthly/yearly for software subscriptions

• Membership fees - Process recurring membership dues for clubs and organizations

• Utility billing - Automate monthly utility and service bill payments

• Installment payments - Collect scheduled payments for large purchases over time

• Donation subscriptions - Process recurring charitable donations

The service manages the complete recurring payment lifecycle including charging existing mandates and revoking mandates when customers cancel their subscriptions.

Operations

Operation	Description	Use When
Charge	Process a recurring payment using an existing mandate. Charges customer's stored payment method for subscription renewal without requiring their presence.	Subscription renewal, recurring billing cycle, automated payment collection
Revoke	Cancel an existing recurring payment mandate. Stops future automatic charges when customers end their subscription or cancel service.	Subscription cancellation, customer churn, mandate revocation

Common Patterns

SaaS Subscription Billing Cycle

Process monthly subscription renewals using stored mandates and payment methods.

Flow Explanation:

1. Charge (recurring) - When a subscription billing cycle triggers (e.g., 30 days after signup), call the Charge RPC with the stored mandate_reference from the initial SetupRecurring. The processor creates a charge using the saved payment method without requiring customer interaction.

2. Subsequent charges - For each subsequent billing cycle, repeat the Charge RPC call with the same mandate_reference. The processor handles the recurring charge using the stored payment credentials.

3. Revoke on cancellation - When a customer cancels their subscription, call the Revoke RPC with the mandate_reference to cancel the mandate. This stops all future automatic charges associated with that mandate.

Benefits:

• Fully automated billing without customer intervention

• Consistent cash flow from recurring revenue

• Reduced payment friction improves retention

• Compliance with stored credential protocols

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Failed Recurring Payment Recovery

Handle failed recurring payments with retry logic and customer notification.

Flow Explanation:

1. Initial charge attempt - Call the Charge RPC at the scheduled billing time. If the payment fails (e.g., insufficient funds, expired card), the response includes error details and FAILED status.

2. Notify customer - Send a notification to the customer informing them of the failed payment and requesting they update their payment method or ensure sufficient funds.

3. Retry charge - After a grace period (e.g., 3 days), call the Charge RPC again with the same mandate_reference. If the customer has resolved the issue (added funds, updated card), the charge succeeds.

4. Confirm success - Notify the customer that the payment succeeded and their subscription remains active.

Retry Best Practices:

• Implement exponential backoff between retries (1 day, 3 days, 7 days)

• Limit total retry attempts to avoid excessive failures

• Provide clear customer communication at each step

• Consider offering alternative payment methods after repeated failures

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Subscription Upgrade/Downgrade with Prorated Charges

Handle plan changes with prorated billing using incremental charges.

Flow Explanation:

1. Prorated charge - When a customer upgrades their plan mid-cycle, calculate the prorated difference and call the Charge RPC immediately with the mandate_reference to collect the upgrade fee.

2. Regular billing - At the next regular billing cycle, call the Charge RPC with the new plan amount. The mandate continues to work for the new amount.

Benefits:

• Immediate revenue capture for upgrades

• Seamless plan transitions for customers

• No need to create new mandates for plan changes

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Next Steps

• Payment Service - Set up initial mandates and process first payments

• Payment Method Service - Store payment methods for recurring use

• Customer Service - Manage customer profiles for subscriptions