Learn all about automatic renewal and the benefits of implementing it for your business
Posted: Sat Apr 19, 2025 3:31 am
Automatic renewal is a feature that allows services or subscriptions to continue without the need for user action. This practice offers convenience and prevents loss of access, and is widely used on digital platforms. Understand how it works and the benefits for the consumer and the provider.
From educational institutions to italy mobile database subscriptions, gyms and streaming services, the recurring payment method is a constant in the lives of those who consume products or use services with fixed charges.
But do you know what your company should do when the contract period expires? This is where we will explain how automatic renewal works .
What is automatic renewal?
calendarThis is a recurring purchase that is renewed in a scheduled manner after the end of a pre-determined cycle. That is, if the contract expires after one month, it is renewed through automatic payment.
This also happens if it was made for one year, being automatically invoiced again on the date that one year has passed since contracting the service or purchasing the product.
This billing model can be carried out by registering a credit card with pre-authorized periodic billing or by other payment methods.
From educational institutions to italy mobile database subscriptions, gyms and streaming services, the recurring payment method is a constant in the lives of those who consume products or use services with fixed charges.
But do you know what your company should do when the contract period expires? This is where we will explain how automatic renewal works .
What is automatic renewal?
calendarThis is a recurring purchase that is renewed in a scheduled manner after the end of a pre-determined cycle. That is, if the contract expires after one month, it is renewed through automatic payment.
This also happens if it was made for one year, being automatically invoiced again on the date that one year has passed since contracting the service or purchasing the product.
This billing model can be carried out by registering a credit card with pre-authorized periodic billing or by other payment methods.