What it means
Recurrence and authorization
A schedule describes when money is due; authorization determines how the payment can actually be collected. Some arrangements use stored payment mandates, while others require the customer to approve each transfer. These mechanisms are not equivalent.
Plan for missed payments
A recurring billing system must track amounts due, attempts, failures, cancellations and customer notices. It should specify what happens to service access when collection is delayed. A blockchain wallet address alone does not grant the merchant permission to pull funds periodically.
Related concepts
In practice
A concrete example
A monthly membership creates a new amount due each month, but customers using a manual crypto transfer still approve each payment themselves.
Technical notes & boundaries
A recurring arrangement is not necessarily a subscription or an automatic debit. Consent, supported rails and cancellation rules must be established explicitly.
Go to the source.
Original references used for this definition. Product details and standards can change.