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 basis for business models such as SaaS, streaming, memberships, subscriptions, and rental services.
Technically, Subscription Payments are based on tokenisation: during the initial registration, your card is tokenised, and the PSP automatically charges the token at the agreed interval. Credit cards, debit cards, SEPA Direct Debit, and in some cases e-wallets are supported.
For merchants, recurring payments are an important revenue driver: they ensure predictable income (recurring revenue), reduce payment effort, and lower your churn rate. Note: if your card is changed or expires, the PSP must update the token automatically (Account Updater) to avoid failed payments.
Subscription Payments Examples
A SaaS provider charges its customers' credit card CHF 49 monthly for the premium subscription — automatically via tokenised payment.
A fitness studio 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 you having to actively pay each time.
Which payment methods are suitable for subscriptions?
Credit cards (tokenised), debit cards, SEPA Direct Debit and partly e-wallets like PayPal. In its standard version, TWINT does not support recurring payments.
What happens to subscriptions when your credit card expires?
Serious PSPs use an account updater that automatically updates expired card details. Without an account updater, the payment fails and you have to update your card details manually.
Can you cancel a subscription at any time?
This depends on the provider's contractual terms. 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.
