Originally published in June 2017. Last updated on February 11, 2025.
For service businesses, long-term, repeat customers are one of the best ways to have predictable income, reliable cash flow, and straightforward scheduling.
But if repeat customers don’t pay you on time, they can easily turn into repeat headaches. After all, you have more important things to do than chasing down late payments and sending reminders.
Recurring payment processing keeps your clients’ credit card information on file, making it easy to bill them as soon as a job’s done. That way you don’t have to waste time on tedious admin work or wonder when you’ll have more cash flow.
Learn what recurring payment processing is, how it works, and which processing software makes the most sense for your service business in this guide.
Start offering recurring payment processing to clients:
What is recurring payment processing?
Recurring payment processing is when clients’ payments are automatically processed for ongoing services, like weekly lawn care.
Once a client authorizes recurring payments, they’re charged before or after each service at an agreed-upon interval until they cancel your services or the agreement ends.
With a recurring payment model, clients’ credit card information is securely stored on file for faster and more convenient billing.
Automatic payment can only be applied to clients’ credit cards after they authorize recurring billing.
For example, by filling out a credit card authorization form or permitting you to automatically process credit card payments on your website or within your payment processing software.
What are recurring payments?
Recurring payments are when clients are automatically billed for ongoing services. Recurring payments can be either fixed or variable.
With a fixed recurring payment, the total amount due is the same for each visit. For example, you could charge a client $75 per visit for standard weekly pool services and invoice them once a month from June to September.
On the other hand, a variable recurring payment is when the payment amount fluctuates each visit and billing cycle. For example, a house cleaning client may only need a standard cleaning one week but ask for help with laundry the next.
Who does recurring payment processing work best for?
Recurring payment processing works best for service businesses that offer ongoing services, like:
- Lawn care
- Residential and commercial cleaning
- Dog walking
- Pool maintenance
- Snow removal
- Car detailing
While it can work in any industry, it should only be used for consistent, repetitive services. You wouldn’t use recurring payment processing for something like an emergency plumbing repair at a client’s home or a one-time renovation project.
Why should your business have recurring payments?
Recurring payments are one of the most effective ways to generate consistent revenue. Adding them to your business can help you to:
- Have predictable income. When you don’t have to guess when your next booking or payment will come in, it’s easier to cover operating expenses, project profit, and stay on top of overhead costs. It’s also an effective way to increase cash flow.
- Retain clients. By offering recurring services, and, in turn, recurring billing, you make your clients’ lives easier. The added convenience of not having to make individual bookings and payments for ongoing services can boost loyalty and keep customers around for longer.
- Simplify scheduling. Having recurring jobs in your schedule helps you to plan ahead and have a more reliable, consistent workload.
- Save time. Ongoing, standard services make for easier invoicing. Fewer one-off invoices mean less time spent at your desk and more time on the job.
- Prioritize growth. When you know how much money and work you have coming in, you can scale strategically by hiring staff members or purchasing new equipment based on real numbers.
- Set prices. Recurring payments work best for standardized services, enabling you to set prices that turn a profit based on your profit margin, markup, and job costing.
- Try new pricing strategies. For example, tiered pricing and packages that attract clients and make billing a breeze.
- Get paid faster. Credit card payments have faster processing times than other payment methods so you get paid sooner, freeing up cash flow.
- Optimize your workflow. When you send an invoice, you have to wait for the client to receive, view, and pay it. With automated billing, you eliminate extended payment due dates, cutting unnecessary steps from your workflow.
- Boost payment security. Credit cards have multiple layers of security, from fraud protection to encryption. Letting your clients pay with them gives them a safe and secure way to make payments.
- Offer flexibility to clients. Credit cards offer clients a way to pay without having to access funds immediately, accommodating different budgets, billing cycles, and variable bills.
- Improve customer experience. Automatic recurring credit card payments mean clients don’t have to manually pay their bills, saving them time and offering a hassle-free experience.
Payment processing software like Jobber can be used to accept recurring credit card payments as well as other methods, allowing clients to choose the payment option that works best for them.
That way, you offer them a convenient, safe, and consistent way to cover recurring bills, while you benefit from better cash flow, fewer late payments, and happier customers.
The best recurring payment processor
To set up recurring payment processing for your service business, you’ll need payment processing software. Here are some of the most popular platforms to consider.
1. Jobber
Jobber is field service management software home service providers can use to get paid automatically, as soon as a job’s finished.
With it, you can accept recurring payments through ACH payment transfers, credit cards, and debit cards. It’s a safe and secure way to add recurring billing to your service business while offering additional benefits such as:
- Automated payments/invoicing
- Online booking
- Client management
- Customizable payment options
You can use Jobber to quote, book, schedule, invoice, and process recurring payments. And because it’s geared towards home service businesses, it’s easy to set up a recurring transaction for price bundles, tiered pricing, and standard services.
It’s ideal for home service providers looking for a way to make recurring payment processing an integral part of their workflow.
2. Square
Square is basic payment processing software that enables you to accept credit card payments from clients in-person or online. You can use it to set up recurring billing for ongoing services and automate invoicing, but it doesn’t offer as much customization for recurring payment schedules as other platforms.
It’s a good option if you have a limited budget or are only looking for a platform that can manage simple recurring payment processing.
3. QuickBooks
QuickBooks is comprehensive accounting software that has a QuickBooks Payments integration to process recurring payments. It’s typically used to oversee both financial management and payment processing in one place.
With QuickBooks Payments, you can accept multiple payment methods, including credit and debit cards and ACH payment transfers as well as track expenses and generate financial reports.
It’s worth checking out if you’re looking for robust accounting software that can also handle recurring payment processing.
4. Stripe
Stripe offers customizable and flexible payment processing software that can handle complex billing models, recurring payments, and multiple currencies.
It integrates with a variety of CRM and scheduling tools so you may be able to use it with your existing software.
It works best for service providers with complicated or unique billing, like those who need to process international payments or have a variety of pricing tiers.
How to set up recurring payment processing
To set up recurring payment processing, follow these steps:
1. Get your client’s permission
Before you can charge a recurring bill to a client’s payment method, you need written or digital consent that details:
- How much the payments will be for
- When they will be charged
- How long it will last
Payment processors typically handle authorization for recurring payments within their software, but if you decide to bill recurring payments manually, you’ll need to have a signed credit card authorization form before you can proceed.
2. Set a payment schedule
A payment schedule tells clients when they can expect funds to be taken from their account. And it helps you to predict and plan for cash flow. Ask clients when they prefer to be billed, such as:
- Monthly, on the last day of each month
- After each visit is completed
- Once the job is closed
- On a custom schedule
This helps clients to ensure they’ll have money available when you process their payment, making for a better customer experience and saving you from having to follow up on a bill that didn’t go through.
3. Set up recurring payment processing in your payment processor
Next, make sure your payment processing software can handle recurring payments.
Depending on the platform you use, how you set up fixed recurring payment processing with your payment processor will vary, but typically you’ll need to:
- Add the client’s information, including payment details
- Choose a payment frequency and amount
- Confirm authorization
If your recurring payments are variable, you’ll need to update the services and total due for each invoice.
Pro Tip: When implementing recurring payment processing for the first time, run a test payment before rolling it out to clients to ensure everything goes smoothly.
4. Send a professional invoice
Invoices are essential, even for recurring work. They provide a record of your services, outline the total due, provide a due date, and describe what the client is being billed for.
On recurring invoices, you should also include details about the client’s credit card payments, such as a partial card number and type, so they know where to expect the charge.
READ MORE: Include these payment terms on your invoices to get paid faster
5. Provide a receipt
After the payment’s been processed, send a receipt to your customer as proof of payment. This will provide them with a record that their bill was paid and inform them that their account was charged.
With Jobber’s Payments, you can handle payments according to your customer’s billing cycle and send automatic email confirmations after a payment has been processed.