Subscription billing is a recurring revenue model where customers are charged at regular intervals — usually monthly, quarterly, or annually — for access to a product or service. It requires automated billing, secure card storage, and support for mid-cycle changes or cancellations. Subscription models are common in software, content, and direct-to-consumer product businesses.
A well-run subscription model builds long-term customer value. However, certain steps should be taken to reduce risk. You should track churn rates, renewal failures, and chargeback triggers related to unanticipated charges. Improving communication — like renewal reminders and cancellation confirmations — helps reduce disputes and improves retention.
AltoPay supports subscription billing through tokenized card storage, retry logic, and integration with CRMs or billing platforms.
For more than a decade, Jessica Velasco has been a thought leader in the payments industry. She aims to provide readers with valuable, easy-to-understand resources.
