# Recurring Billing

> Recurring billing is the automatic, scheduled collection of payments from customers at predetermined intervals for ongoing services or subscriptions.

- **URL**: https://dodopayments.com/glossary/recurring-billing

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## What is Recurring Billing?

Recurring Billing is used by businesses to charge their customers for the product or services they provide on a regular basis, like monthly or annually.

The types of business or companies that use recurring billing methods are;

- SaaS

- Entertainment (like Netflix, Prime etc)

- E-commerce

- Publications

- Online education platforms and so on

**Recurring Billing vs. Subscription Billing**

- Subscription Billing charges a fixed fee regularly for access to a service or product.

- Recurring Billing is broader and can include variable charges, such as usage-based billing or pay-as-you-go models.

For example:

**Recurring Billing:** A cloud service provider billing based on the amount of storage used monthly.

**Subscription Billing:** A SaaS platform charging $20 per month.

Both models cater to different customer needs but share the goal of simplifying billing processes.