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B2B eCommerce Recurring Billing: Capturing Repeated Payments

Updated November 14, 2023

Key Takeaways
  • ECommerce recurring billing is a payment model where customers are charged at regular intervals for products or services.
  • It's widely used for subscriptions, memberships, and SaaS platforms. This system automates transactions, ensuring a seamless experience for both buyers and sellers.
  • Customers provide their payment information up front, and the platform charges them on predefined dates.
  • This method fosters customer retention, as it simplifies the purchasing process by being connected to a bank account or credit card. Sellers benefit from predictable revenue streams and reduced administrative efforts, which isn't always true with a one-time business model.
  • It's crucial to prioritize security and transparency to maintain trust. Employing robust payment gateways and clear communication is vital for a successful recurring payments system.

B2B and Recurring Billing

Common features of the recurring payment system

Recurring bill payments through a payment gatewayEver since subscription-based services have increased in popularity, recurring billing software and applications have become necessary. There are numerous different billing software and services that are capable of handling recurring payments. Even some eCommerce platforms are built to be able to accept recurring payments. While recurring billing is often associated with B2C and subscription services, it can also be extremely useful for B2B businesses in a number of different ways.

What are Recurring Payments? 

Recurring billing, also called recurring payments or subscription payments, is where a customer is charged for goods or services on a prearranged schedule. Usually, the business keeps the customer’s credit card and information on file and charges it on schedule until the customer exits the agreement.

Recurring payments can be useful for subscription services, bills, and memberships. For B2B businesses, recurring payments can allow customers to pay installments instead of one lump sum, guaranteeing monthly revenue for the business while helping customers better control their finances. Recurring payment solutions can also work for a B2B business where customers place the same order every week or month.

The recurring payment model can improve customer retention.Endless Billing Schedule Options

One of the great features that advanced recurring payments software has in common is the ability to arrange billing on any schedule. You could schedule it to happen daily, weekly, monthly, every 10 days, every 40 days, or whatever works for you and your customers. You can also easily put each customer on a different schedule, depending on their needs and their orders. Once you set up to payment schedule, it is automated and the software or application takes care of the rest.

Automate Payment Reminders and Receipts

Another excellent aspect of recurring payments is that you can automate payment reminders and/or receipts for your customers. Some recurring payment services have the functionality to send automated email reminders to customers while others might need to be integrated with your marketing system to be able to do it. You could choose to send a reminder to your clients that their card will be charged a certain amount on a certain day, or you could send a receipt letting them know that their payment has been received and processed for the week, month, or other agreed-upon time period. 

Fixed recurring payments leads to customer retentionDealing with Payment Issues

As with any payment method, you are going to have some issues that arise, like incorrect card information,  declined payments, or other forms of failed payments. Most recurring payments software is built to help you handle issues like these. The software can be set up to send you and the customer a notification letting you know if a customer’s credit card is about to expire or if a payment was declined. This then gives you the chance to get updated card information before the next payment is due, keeping you from losing the sale.

Recurring Billing and Security

Security with recurring payments is paramount due to several critical reasons. It involves the continuous storage and processing of sensitive financial information like credit card details. Any breach in security could lead to unauthorized access, identity theft, and financial loss for both customers and businesses. This jeopardizes trust, potentially causing customers to abandon the service and tarnishing a company's reputation.

  • Adhering to industry-standard security practices is a legal requirement in many regions. Non-compliance can lead to severe penalties and legal repercussions. Adherence to regulations like PCI-DSS (Payment Card Industry Data Security Standard) is essential for any business handling payment information.
  • Robust security measures safeguard against fraudulent activities. With recurring payments, the possibility of fraudulent subscriptions or unauthorized charges increases, making it crucial to have safeguards in place.
  • Strong security instills confidence in customers. Knowing their information is safe fosters trust and encourages continued patronage. A secure billing system can be a competitive advantage, setting a business apart in a crowded market.

Clarity Can Help

Our team at Clarity has decades of experience implementing business solutions to help make doing business easier for our clients. We have successfully set up and implemented multiple recurring billing systems for some of our clients so that they can accept recurring payments.

Clarity eCommerce, our platform filled with comprehensive eCommerce solutions, is capable of handling many types of recurring payments for our clients. To find out more about subscription payments or to speak with an expert about setting up your business’s recurring payments system, call or click to contact us today!

Accept Recurring Payments with Ease

There are many types of recurring payments, and Clarity can help you add to—or move away from—your one-time payments model. Get in touch to learn more about a recurring payment system and what they can do for your business.

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B2B eCommerce recurring payments involve an automated payment system designed for businesses selling products or services on a subscription or recurring basis. It enables the seamless collection of payments from business customers at regular intervals, such as monthly, quarterly, or annually (as opposed to one-time payments).

This method streamlines the revenue collection process, providing a predictable and steady cash flow. It's particularly beneficial for industries like SaaS, wholesale, and service providers, as well as those offering maintenance contracts or consumable goods.

By automating the payment process, businesses can reduce administrative overhead, improve customer satisfaction, and enhance overall financial stability. Security measures, like compliance with industry-standard protocols such as PCI DSS, ensure the safe handling of sensitive payment details. Implementing B2B eCommerce recurring payments optimizes cash flow management and supports sustainable growth for businesses in various sectors.


Recurring payments play a crucial role in B2B eCommerce due to its ability to establish a steady and predictable revenue stream. It simplifies payment processes for both buyers and sellers, reducing administrative overhead and ensuring timely payments.

This predictability empowers businesses to accurately forecast revenue, enabling more effective financial planning and resource allocation. Recurring billing enhances cash flow management, providing a reliable influx of funds at regular intervals.

For businesses offering different types of subscription services, maintenance contracts, or consumable goods, this model is especially advantageous. It fosters customer loyalty by providing a seamless and convenient payment experience and can improve customer relationships overall.

B2B eCommerce recurring billing not only streamlines operations but also contributes to the long-term financial health and stability of businesses by ensuring a consistent and dependable income source.


Businesses across various industries can benefit from B2B eCommerce recurring payments. The recurring payment model is particularly advantageous for those that offer products or services on a subscription basis, maintenance contracts, or consumable goods instead of billing per transaction.

Software as a Service (SaaS) companies, for instance, can leverage recurring payments for their subscription-based software licenses. Wholesalers can automate the billing process for regular shipments of goods, while service providers, such as marketing agencies or IT support companies, can bill clients on a retainer or contract basis. Manufacturers of consumable goods, like office supplies or medical equipment, can establish automated replenishment cycles.

Ultimately, any business that provides offerings with recurring payment requirements can streamline operations and enhance cash flow by implementing B2B eCommerce recurring payments, leading to improved financial stability and customer satisfaction.


B2B eCommerce recurring payments operate through an automated payment system designed for businesses engaged in subscription-based services, maintenance contracts, or the provision of consumable goods. Automatic payments involve setting up a predefined schedule for billing intervals, which could be monthly, quarterly, annually, or according to a custom arrangement. This greatly reduces the number of late or missed payments that a company has to deal with.

With the recurring payment model, the business and customer establish an agreement, often through a contract or subscription signup, which grants permission to charge the customer's bank account, or payment methods such as credit, at regular intervals.

Once this agreement is in place, a billing platform or integrated payment gateway manages the automated process. At the designated intervals, the system automatically initiates the payment process, charging the specified amount to the customer's chosen payment method.

In the event of a successful payment, the transaction is recorded, and the goods or services are provided as per the agreement. Should a payment fail, the system typically sends "failed payments" notifications to both parties, allowing for prompt resolution and reattempting the transaction if necessary.

The recurring payment model approach ensures consistent revenue for the business while offering convenience and reliability for the customer.


Yes, it is secure to use recurring payments for B2B transactions when implemented with appropriate security measures. Reputable B2B eCommerce platforms and billing systems adhere to industry-standard security protocols, such as the Payment Card Industry Data Security Standard (PCI DSS). This ensures that sensitive payment details are encrypted and stored securely.

Businesses should also employ secure authentication methods and regularly update their systems to protect against potential vulnerabilities.

Compliance with data protection regulations, such as GDPR or CCPA, is crucial to safeguarding customer information. This includes obtaining proper consent for recurring payments and providing clear communication about how automatic payments are handled.

Businesses should also partner with a reputable payment processor and B2B payment gateway that prioritizes security. By following best practices and staying informed about the latest security standards, B2B eCommerce recurring payments can be a safe and reliable method for handling transactions. Always consult with security experts and adhere to industry guidelines to ensure the highest level of security in B2B recurring payments processes.


When a payment fails in a recurring payments system, recurring payment methods typically trigger a notification to both the business and the customer, both via email/text and via the payment gateway. This notification informs them of the unsuccessful transaction. The business then takes steps to rectify the situation.

If the customer doesn't respond to the automatic query, the business may reach out to the customer to inform them of the payment failure and request updated payment information. This could be a new credit card number, expiration date, or any other necessary details. The customer may also be asked to verify if there are sufficient funds available before payment processing is tried again.

Once the necessary information is provided, the business again attempts payment processing. This may be done manually by an administrator or automatically through the billing system, depending on the setup. If that doesn't work, the business may offer other payment methods to replace the one that isn't working.

With the recurring payment model, it's crucial for businesses to have a clear process in place for handling failed payments to ensure minimal disruption to the revenue stream and to maintain a positive customer relationship. This can enhance customer satisfaction and reduce the administrative burden on the company.

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Stephen Beer is a Content Writer at Clarity Ventures and has written about various tech industries for nearly a decade.He is determined to demystify HIPAA, integration, and eCommerce with easy-to-read, easy-to-understand articles to help businesses make the best decisions.

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