Description: A billing agreement is a contract that allows a merchant to charge a customer on a recurring basis, thus facilitating the management of automatic payments for services or products. This type of agreement is fundamental in the realm of online payment platforms, as it simplifies the collection process and ensures that merchants receive their income in a timely manner. Billing agreements typically include details such as payment frequency (monthly, quarterly, annually), the amount to be charged, and duration of the agreement. Additionally, they allow customers to enjoy the convenience of not having to make manual payments each time a deadline is due, which can improve customer retention and overall satisfaction. In a world where digitalization and automation are becoming increasingly common, billing agreements have become an essential tool for businesses of all sizes, from startups to large corporations, looking to optimize their cash flow and provide a smoother user experience.
