What's the difference between one-time and recurring payments?

A one-time payment charges a customer once for a single product or service, while a recurring payment charges automatically on a set schedule for ongoing access. The choice typically follows how the product delivers value: a single event favors one-time, continuous access favors recurring.

What are the disadvantages of recurring payments?

Recurring payments carry churn risk, require cancellation workflows that meet FTC disclosure and consent requirements, and need ongoing technical upkeep like token refresh to avoid failed renewals. They also tend to generate more dispute activity than one-time charges, particularly around cancelled subscriptions.

What does a one-time fee mean?

A one-time fee is a single charge tied to a specific product, service, or event, with no further billing afterward. It is common for physical goods, completed projects, and perpetual software licenses.

What does a recurring fee mean?

A recurring fee is a charge that repeats automatically on a set cadence, such as monthly or annually, in exchange for continued access to a product or service. Visa's merchant guidance requires merchants to stop these charges immediately once a customer requests cancellation.

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