Recurring Billing

Recurring billing involves charging a customer at regular intervals, such as monthly or annually, for a product or service.

What is recurring billing?

Recurring billing involves charging a customer at regular intervals, such as monthly or annually, for a product or service. Recurring billing is often used for subscription-based services or products, where the customer agrees to be billed on a recurring basis until they cancel the subscription or service. The customer may be charged automatically, such as with a credit card, or billed through an invoice.

What is recurring billing software?

Recurring billing software is a type of software that automatically charges or invoices customers on a recurring basis. This software typically integrates with payment gateways, CRM or other business systems, and can include features such as billing history, invoicing and reporting. Recurring billing software is particularly useful for companies that offer subscriptions or usage-based pricing.

For more complex pricing structures, recurring billing software often integrates with CPQ systems for pricing and product information. The software might also integrate with ERP systems and inventory management systems to automatically update stock levels and track product usage.

Recurring billing software can also integrate with business intelligence systems to provide real-time visibility into customer behavior, usage and revenue trends. This can help businesses improve services and offer upsells at the right time. In addition, recurring billing software can integrate with marketing automation systems to trigger actions such as sending emails or texts based on a customer’s billing status.

recurring billing software


What are the benefits of recurring billing for your business?

Recurring billing offers several benefits for businesses, particularly those that are offering the same products or services to a customer between each billing interval, such as a subscription at a set price. For these types of businesses, recurring billing increases predictability and stability in cash flow.

Recurring billing can reduce administrative costs, as businesses do not need to manually bill customers on a regular basis. Automatic recurring billing can also benefit customers, since they don’t need to remember to make payments. In addition, recurring billing can bring more opportunities for upselling and cross-selling, since businesses have an established base of customers that they can offer additional products or services to.

How is recurring billing software different from other billing systems?

Recurring billing systems are designed to handle recurring payments, such as subscriptions or memberships, while other billing systems may not have this capability. Recurring billing software can also handle multiple pricing models, such as tiered pricing and usage-based billing, while other billing systems may only support a single pricing model. Often companies choose recurring billing software when billing flexibility and automation are essential to their business model.

What are the data challenges with recurring billing software?

Recurring billing software must be able to handle large volumes of data and multiple integrations with other business systems. If a business is charging based on usage, instead of a fixed subscription price, or has multiple pricing rules, this increases the demands on the recurring billing solution related to data processing.

If a recurring billing system cannot accurately process data related to usage or subscription tiers, this can lead to several problems. It may lead to inaccurate billing, which can result in customer disputes or lost revenue. Correcting these errors often involves time-consuming manual processes. Errors in data processing, or an inability to process data in real time, can also make it difficult to identify trends, such as customers likely to churn.

Another data challenge with recurring billing software is auditability and traceability. Businesses that offer services with partners, or who need to allocate revenue to certain offices or subsidiaries, need clear records that show how a service was used. These records are often needed for revenue sharing or data security and compliance issues.

Recurring billing software

How does DigitalRoute work with recurring billing software?

DigitalRoute partners with several providers of recurring billing software in order to solve some of the data challenges involved with recurring billing. DigitalRoute helps them extend the capabilities of their software, particularly when it comes to high volumes of data, complex pricing rules, built-in error correction and full data traceability.

In these situations, DigitalRoute’s software automatically collects customer usage data, enriches it with data from other business systems, then sends clean usage data records to the recurring billing software. The data can also be sent to business intelligence systems to improve analytics and be used to ensure that customers do not exceed usage levels.

DigitalRoute’s software includes dynamic error correction as part of the usage-based workflow. Any usage that cannot immediately be validated is automatically pushed to error correction subsystems to capture billable behavior.


What billing software can I use for recurring billing?

There are several providers of recurring billing software on the market. They include capabilities for recurring billing, invoicing, revenue recognition, subscription management and customer management.

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