Quick Answer
Setting up recurring billing for a service business locks in several key decisions: billing date (1st, 15th, or anniversary), payment method (card or direct debit, noting direct debit has lower failure rates), and failure recovery sequence (retry timing and dunning schedule). These are difficult to change once clients are on live billing plans.
The first time you set up recurring billing, several decisions get locked in that are difficult to change later: which billing date to use, whether to offer direct debit alongside card, and what the failure-recovery sequence looks like. Getting these decisions right from the start avoids operational problems as your subscriber base grows. This page covers how Stripe recurring billing works for service businesses, the key configuration choices, and how to handle the edge cases.
How recurring billing works in practice
Recurring billing means the business initiates the payment on the scheduled date. The client authorises the billing arrangement once at sign-up and the charges repeat automatically. The client does not need to take any action each cycle.
In Bizzly, recurring billing is powered by Stripe. When a client subscribes, they enter their payment details via a Stripe-hosted payment page. Stripe stores the payment details securely. On each billing date, Bizzly instructs Stripe to charge the client for the active plan amount.
Should I use card billing or direct debit for subscription payments?
Card billing
- Immediate processing
- Works for any amount
- Stripe transaction fee: 1.5% + 20p (European cards)
- Higher failure rate due to card expiry
- Best for: smaller monthly amounts, any new subscriber
Direct debit (Bacs)
- 3-working-day settlement
- Lower transaction fee (~0.5-1.0%)
- Lower ongoing failure rate
- Requires mandate setup (slightly higher friction)
- Best for: larger monthly amounts, established clients
What billing date options are available for subscription businesses?
There are two main approaches to billing date configuration for service subscription businesses:
Fixed billing date (1st of the month)
All subscriptions bill on the same date. Simpler reconciliation, predictable cash flow, and easier for clients to plan around. New subscribers in the middle of the month pay a prorated amount for the remainder of the current month and then full amount on the 1st going forward. Works well for cleaning, window cleaning, and other services where the billing date and service schedule are unrelated.
Rolling billing date (anniversary of sign-up)
Each client bills on the same day of the month they signed up. A client who subscribes on the 15th bills on the 15th every month. No proration required for new clients. Slightly more complex to track for the business because billing events are spread through the month. Works well for coaching and tutoring where the client relationship start date matters.
What happens when a payment fails
When a scheduled charge fails, Bizzly triggers the dunning sequence automatically:
- Immediate email to the client with a payment update link
- Retry at day 3
- Reminder email at day 5 if still outstanding
- Final retry at day 7
- Booking access suspended at day 8 if no payment received
- Subscription cancelled at day 14 if no payment received
You can configure the timing and suspension thresholds. Some businesses prefer a shorter sequence (suspend faster) for high-demand services where the slot can easily be filled. Others prefer a longer grace period for long-standing clients.
Related resources
Recurring billing questions
Set up recurring billing for your service business today
Bizzly handles Stripe card and direct debit billing, failed payment recovery, and billing date configuration. 14-day free trial.