How to Set Up Recurring Payments for Customers

To set up recurring payments for customers, you’ll need a system that allows you to automatically bill clients at regular intervals, weekly, monthly, or yearly, without manually creating an invoice every time. This ensures predictable cash flow, saves hours of admin work, and reduces the chances of missed payments.

Choose the Right Payment Platform

Not all systems support recurring payments. Select a platform that allows you to create payment schedules, securely store payment details, and manage subscriptions or ongoing services.

When evaluating platforms, check for:

• Automatic billing cycles (weekly, monthly, annual).
• Secure payment storage (PCI compliance).
• ACH and credit card support for flexibility.
• Integration with your invoicing/accounting system for smooth tracking.

Example: A service-based business that charges $150/month for ongoing cleaning services needs a platform that automatically charges customers without manual input.

Collect Customer Payment Authorization

Before setting up recurring payments, always get your customer’s approval. Depending on your payment method, this can include:

• Signed authorization form for ACH payments.
• Digital agreement or terms of service for subscription-based billing.
• Consent via payment link or portal where the customer enters their card details.

This not only protects you legally but also builds trust with your customer.

Create the Recurring Payment Schedule

Once you have authorization, create a payment schedule based on your customer agreement.

Here’s what to define:

• Billing interval: daily, weekly, monthly, or custom.
• Start and end date: decide if it’s ongoing or for a fixed period.
• Amount: fixed (like $200/month) or variable (if usage-based).

Example: An HVAC contractor offering a yearly service plan can set up a monthly recurring charge of $25 instead of sending 12 separate invoices.

Enter Customer Payment Details

Add the customer’s payment method into your system. Depending on your platform, this can be:

• Credit/debit card details.
• Bank account info (for ACH payments).
• Stored payment token (for secure processing without re-entering details).

Most modern platforms securely store payment data, so you don’t need to handle sensitive details directly.

Automate Invoices and Notifications

Good recurring payment systems generate invoices automatically and notify customers when charges occur. This helps avoid disputes and ensures transparency.

Checklist:

• Enable automatic invoice generation for every recurring payment.
• Send email confirmations after each charge.
• Allow customers to view past invoices in a self-service portal.

Monitor and Manage Recurring Payments

Even though payments are automated, you still need to monitor them.

Things to review regularly:

• Failed payments (due to expired cards or insufficient funds).
• Upcoming renewals (especially for contracts that end soon).
• Customer cancellations or changes (allow flexibility).

Having a system that automatically retries failed payments is a huge time-saver.

Bonus Tip: Use DepositFix for Recurring Payments

DepositFix makes it easy for businesses to set up recurring payments. With its customer portal and automated billing features, you can:

• Collect ACH or credit card payments on a recurring schedule.
• Store customer details securely without handling sensitive data.
• Sync payments with your CRM for better tracking.
• Reduce manual follow-ups with automated reminders.

This way, you ensure steady cash flow while spending less time chasing invoices.