Recurring payments, known also as recurring billings or subscriptions, is a mechanism that processes payments for all kinds of repetitive transactions. This payment method allows e-businesses to collect money from customers’ card, bank account or PayPal account. Once the client agrees, payment is initiated regularly at set time intervals.
How recurring payments work
Your client has to create an account on your website and order your service. When it comes down to the payment process they fill out the payment form, with the card or bank account data (such as card or bank account number, card expiration date, cardholder name, CVV etc.) or are sent to their PayPal account. Data are collected when clients create an account on an e-business website or after the trial version’s expiration. This is also the moment when you ask your clients for permission to collect recurring payments.
After first processed transaction you receive from PayLane your transaction ID. After 30 days or any other payment period, your system, through PayLane API, makes the next payment. To do it, there is no need to ask the payer to enter card or bank account data once again. The payment takes place using the transaction ID from the first purchase and transaction amount, which can be changed, so if your clients upgrades their account there is no need to ask him again for permission.