Subscription Payments
Subscription payments (recurring payments) are automatic, regular charges for subscriptions — e.g. monthly, quarterly, or annually.
Subscription Payments (recurring payments)
Subscription payments refer to the automatic, recurring charging of a payment method at regular intervals — typically monthly, quarterly, or annually. They form the financial foundation for business models such as SaaS, streaming, memberships, subscriptions, and rental services.
Technically, subscription payments are based on tokenisation: during initial registration, the card is tokenised, and the PSP automatically charges the token at the agreed interval. Supported methods include credit cards, debit cards, SEPA credit transfer/direct debit, and in some cases e-wallets.
For Comerciantes, recurring payments are an important revenue driver: they ensure predictable income (recurring revenue), reduce payment effort, and lower the churn rate. Important: in the event of a card change or card expiry, the PSP must automatically update the token (account updater) to avoid failed payments.
Subscription Payments Examples
A SaaS provider charges its customers' credit card EUR 49 monthly for the premium subscription — automatically via tokenised payment.
A gym collects the monthly membership fee via SEPA direct debit.
A streaming service automatically updates the payment token when a credit card expires (account updater) to avoid payment interruptions.
Subscription Payments FAQ
What are Subscription Payments?
Subscription payments are automatic, recurring payments for subscriptions. The PSP charges the payment method at regular intervals — without the customer having to actively pay each time.
Which payment methods are suitable for subscriptions?
Credit cards (tokenised), debit cards, SEPA Direct Debit, and some e-wallets like PayPal. TWINT does not support recurring payments in its standard version.
What happens to subscriptions when the credit card expires?
Reputable PSPs use an account updater that automatically updates expired card details. Without an account updater, the payment fails, and the customer must manually update their card details.
Can I cancel a subscription at any time?
This depends on the contractual terms of the provider. In Switzerland, the general terms and conditions of the respective service provider apply. The automatic payment can be stopped at any time — this does not affect the contractual notice period.
