A charge applied to a cardholder in predetermined intervals for services or goods of an ongoing nature (memberships, subscriptions).
How Does a Recurring Transaction Work?
In a Recurring Transaction a cardholder will purchase a service or good. Instead of charging one price, the Merchant will establish a set interval of time (usually a month) in which the consumer will be charged an agreed-upon sum. This payment will continue until the buyer either cancels the service or, if the charge applies to one lump amount (such as a car or house), that amount is paid off.