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Recurring Payment Agreement Template
Set clear rules for recurring charges so both provider and customer understand how, when, and how much will be billed.
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Recurring Payment Agreement Template
This Recurring Payment Agreement (“Agreement”) is made as of [Effective Date] by and between:
Service Provider / Vendor
[Provider Legal Name]
[Entity Type, e.g., “Limited Liability Company”]
[Registered Address]
[City, State/Province, ZIP/Postal Code, Country]
Email: [Provider Contact Email]
Phone: [Provider Contact Phone]
Customer / Client
[Customer Legal Name]
[Entity Type or “Individual”]
[Billing Address]
[City, State/Province, ZIP/Postal Code, Country]
Email: [Customer Contact Email]
Phone: [Customer Contact Phone]
Provider and Customer may each be referred to as a “Party” and together as the “Parties.”
1. Purpose and Scope
1.1 Purpose.
This Agreement sets out the terms under which Provider will supply certain ongoing products and/or services to Customer and charge recurring fees for them.
1.2 Services / Subscription.
Provider will provide the following services, subscription, or membership (“Services”):
[Description of Services, subscription plan, or membership level]
Additional details may be described in Schedule A – Services and Pricing, which is incorporated into this Agreement.
2. Fees and Pricing
2.1 Recurring Fees.
Customer agrees to pay Provider the following recurring fees for the Services:
Recurring fee: [Amount and Currency]
Billing frequency: [Monthly / Quarterly / Annually / Other]
Plan name (if applicable): [Plan Name]
2.2 Setup or One-Time Fees (if any).
Customer shall pay the following non-recurring fees (if applicable):
Description: [Description]
Amount: [Amount and Currency]
Due date: [Due Date]
2.3 Taxes.
Unless stated otherwise, fees are [exclusive / inclusive] of applicable taxes. Customer is responsible for any sales, value-added, or similar taxes on the Services, except taxes based on Provider’s income.
3. Billing Cycle and Invoicing
3.1 Billing Cycle.
Provider will bill Customer on a recurring basis as follows:
First billing date: [Start Date]
Subsequent billing dates: [e.g., “the same day of each month,” “on the 1st of each month,” “annually on the anniversary of the Start Date”]
3.2 Invoicing.
Provider may issue invoices electronically to the email address listed for Customer or via an online portal. Each invoice will show the billing period, description of the Services, fees, taxes, and total amount due.
3.3 Automatic Charges.
If Customer has provided a card or bank account for recurring payments, Provider may automatically charge the payment method on or after each billing date for the amounts due under this Agreement.
4. Payment Terms and Authorization
4.1 Due Date.
Unless otherwise specified on the invoice, recurring fees are due on the billing date each cycle.
4.2 Payment Methods.
Customer shall pay amounts due using one or more of the following methods:
Credit or debit card
Bank transfer or direct debit
[Other accepted methods]
4.3 Payment Authorization.
Customer authorizes Provider to charge Customer’s designated payment method for the recurring fees and applicable taxes on each billing date, as well as any agreed setup or one-time fees.
4.4 Updating Payment Information.
Customer shall keep payment method information current and promptly update any expired, cancelled, or replaced card or account details.
5. Failed or Late Payments
5.1 Failed Payments.
If a recurring charge is declined, reversed, or returned, Customer remains responsible for the unpaid amount and any related bank or processor fees, to the extent allowed by law.
5.2 Grace Period and Late Fees (if applicable).
If payment is not received within [Number] days after the billing date, Provider may charge:
A late fee of [Amount or Percentage] on the overdue amount; and/or
Interest at [Interest Rate]% per year (or the maximum permitted by law), calculated from the day after the billing date until payment is received.
5.3 Suspension for Non-Payment.
If an invoice remains unpaid for more than [Number] days after the billing date, Provider may suspend or restrict access to the Services until all overdue amounts are paid, after giving notice where practicable.
6. Term and Renewal
6.1 Initial Term.
The initial term of this Agreement begins on the Effective Date and continues for [Initial Term, e.g., “12 months,” “1 month”] (“Initial Term”).
6.2 Automatic Renewal.
At the end of the Initial Term, this Agreement will automatically renew for successive periods of [Renewal Term, e.g., “1 month,” “12 months”] (each a “Renewal Term”), unless either Party gives written notice of non-renewal at least [Number] days before the end of the then-current term.
6.3 Price Changes on Renewal.
Provider may adjust fees for any Renewal Term by giving Customer at least [Number] days’ prior written notice. If Customer does not agree to the updated fees, Customer may opt not to renew under Section 6.2.
7. Changes to Services or Plan
7.1 Upgrade or Downgrade.
Customer may request to upgrade or downgrade the Services (for example, changing plan level, number of users, or features). Any change in fees will be prorated or applied according to Provider’s policy and confirmed in writing or via email.
7.2 Additional Services.
Any additional services not included in the current plan may be subject to separate fees and terms, to be agreed in writing or through a separate order form.
8. Cancellation by Customer
8.1 How to Cancel.
Customer may cancel the recurring Services by providing notice to Provider at:
Email: [Cancellation Email Address]
Online: [Portal URL, if applicable]
Mailing address: [Provider Address]
8.2 Notice Period.
Cancellation will take effect at the end of the current billing period or on [Number] days’ notice from receipt of the cancellation request, whichever is specified here: [Description of rule].
8.3 Refunds.
Unless otherwise required by law or agreed in writing:
Amounts already charged for the current billing period are [non-refundable / partially refundable as follows: __________].
Any prepaid amounts for periods after the effective cancellation date will be [refunded / credited] as follows: [Description].
9. Termination by Provider
9.1 Termination for Cause.
Either Party may terminate this Agreement immediately by written notice if the other Party materially breaches this Agreement and does not cure the breach within [Number] days after receiving written notice describing the breach.
9.2 Termination for Business Reasons.
Provider may terminate the Services for business or operational reasons by giving Customer at least [Number] days’ prior written notice. In that case, Provider will refund any prepaid amounts for unused service periods after termination.
10. Data, Confidentiality, and Privacy (Optional)
10.1 Customer Data.
Provider will handle Customer’s billing and contact data in accordance with its privacy policy and applicable data protection laws.
10.2 Confidential Information.
Each Party agrees to protect the other Party’s non-public information obtained in connection with this Agreement and to use it only for purposes related to this Agreement.
11. Limitation of Liability
To the extent permitted by law, neither Party shall be liable to the other for any indirect, incidental, or consequential damages arising out of or related to this Agreement.
Provider’s total aggregate liability for direct damages arising from or related to this Agreement shall not exceed the fees actually paid by Customer to Provider under this Agreement during the [Number]-month period before the event giving rise to the claim, unless applicable law requires a different limit.
12. Governing Law and Dispute Resolution
12.1 Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of [State/Province, Country], without regard to conflict-of-law rules.
12.2 Dispute Resolution.
If a dispute arises in connection with this Agreement, the Parties shall first attempt in good faith to resolve it through informal discussions. If they cannot resolve the dispute within [Number] days after one Party gives written notice of the dispute, either Party may pursue [mediation / arbitration / court proceedings] in [City, State/Province, Country].
13. Miscellaneous
13.1 Entire Agreement.
This Agreement, together with any schedules or order forms, is the entire agreement between the Parties regarding the recurring Services and supersedes all prior oral or written understandings on this subject.
13.2 Amendments.
Any amendment to this Agreement must be in writing and signed (including electronically) by both Parties, unless a simpler process is expressly allowed for non-material changes.
13.3 No Waiver.
Failure by either Party to enforce any right under this Agreement does not operate as a waiver of that right or any other right in the future.
13.4 Severability.
If any provision of this Agreement is found invalid or unenforceable, the remaining provisions will remain in full force and effect.
13.5 Assignment.
Customer may not assign this Agreement without Provider’s prior written consent, except to a successor in interest of Customer’s business. Provider may assign this Agreement to an affiliate or successor on written notice to Customer.
13.6 Counterparts and Electronic Signatures.
This Agreement may be signed in counterparts. Electronic or scanned signatures shall be treated as originals for all purposes.
14. Signatures
IN WITNESS WHEREOF, the Parties have executed this Recurring Payment Agreement as of the Effective Date written above.
Service Provider / Vendor
Signature: _______________________________
Name: [Authorized Signatory Name]
Title: [Title]
Date: [Date]
Customer / Client
Signature: _______________________________
Name: [Authorized Signatory Name]
Title: [Title, if applicable]
Date: [Date]
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Recurring Payment Agreement Template
RECURRING PAYMENT AGREEMENT TEMPLATE FAQ
What is a recurring payment agreement?
A recurring payment agreement is a contract where a customer authorizes a business to charge them on a regular schedule (for example, monthly or annually) for ongoing services, subscriptions, or membership fees. It explains the billing cycle, price, payment method, and cancellation rules.
When should I use a recurring payment agreement?
Use a recurring payment agreement when you provide ongoing services or access (such as SaaS, memberships, maintenance, retainers, or subscription boxes) and need clear written consent for repeated charges instead of one-time invoices.
What should a recurring payment agreement include?
It should identify the parties, describe the services or subscription, set the recurring fee and billing frequency, explain how and when payments are charged, state what happens if a payment fails or is late, and describe how the customer can cancel or change the plan.
Is a recurring payment agreement the same as a payment authorization form?
They are related but not exactly the same. A payment authorization form focuses on the customer’s consent to charge a specific card or bank account. A recurring payment agreement includes that consent plus the commercial terms of the subscription or ongoing service. Many businesses use both together.
Can customers cancel recurring payments under this agreement?
Yes, customers usually can cancel recurring payments by giving notice within the timeframe described in the agreement. The document should clearly explain how to cancel, when cancellation takes effect, and whether any fees or partial refunds apply.
Can AI Lawyer help me customize this recurring payment agreement?
Yes. AI Lawyer can help you adapt this recurring payment agreement template to your business by adjusting billing cycles, pricing, renewal rules, and cancellation terms. You still decide the commercial details and remain responsible for legal compliance and any required consumer notices.
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