When handling recurring payments, understanding on-session and off-session is crucial for consumer experience and payment success rates.

On-session payments

Definition:

The consumer is actively involved in the payment (entering card details, authenticating the payment).

In recurring terms:

The initial payment or setup of the subscription is usually on-session. Here, the consumer authorizes the payment method for future use.
A returning consumer using previously saved payment details, such as for one-click checkouts or in-app purchases.

Off-session payments

Definition:

The consumer is not actively participating when the charge occurs (automatic monthly subscription renewal, MOTO payments where the consumer is on the phone).

In recurring terms:

Subsequent charges in a subscription cycle are typically off-session. You charge the consumer without direct interaction.

How to implement recurring payments

Recurring payments can take various forms. We categorize them into the following three types.


Subscription payments A subscription is a recurring payment arrangement where a consumer agrees to be charged automatically at regular intervals (e.g., monthly, yearly) for ongoing access to a product or service, usually for a fixed amount. Initial payment: On-session (usually) Subsequent payments: Off-session Examples:* Streaming services, gym memberships, meal kit deliveries	Initial payment `initiator`:CONSUMER `scheduleType`:RECURRING Subsequent payments `initiator`:MERCHANT `scheduleType`:RECURRING
Usage based payments A usage-based payment is a billing model where the consumer is charged based on actual consumption or activity rather than a fixed amount. Initial payment: On-session (usually) Subsequent payments: Off-session Examples:* Utility bills (electricity, gas, water), charging a late fee or an incidental damage fee	Initial payment `initiator`:CONSUMER `scheduleType`:RECURRING Subsequent payments `initiator`:MERCHANT `scheduleType`:RECURRING
Account on file payments Account on file payments are made by the consumer using a stored payment instrument. They differ from subscription and usage based payments as they are not initiated by the merchant. There's no off‑session automatic charge happening later, everything’s done with the consumers explicit action at the time and may require authentication. Initial payment: On-session Subsequent payments: On-session Examples:* One-click or in-app purchases	Initial payment `initiator`:CONSUMER `scheduleType`:UNSCHEDULED Subsequent payments `initiator`:CONSUMER `scheduleType`:UNSCHEDULED

Subscription payments A subscription is a recurring payment arrangement where a consumer agrees to be charged automatically at regular intervals (e.g., monthly, yearly) for ongoing access to a product or service, usually for a fixed amount.

Initial payment: On-session (usually) Subsequent payments: Off-session

*Examples:** Streaming services, gym memberships, meal kit deliveries

Initial payment
initiator:CONSUMER
scheduleType:RECURRING

Subsequent payments
initiator:MERCHANT
scheduleType:RECURRING

Usage based payments
A usage-based payment is a billing model where the consumer is charged based on actual consumption or activity rather than a fixed amount.

Initial payment: On-session (usually)
Subsequent payments: Off-session

*Examples:** Utility bills (electricity, gas, water), charging a late fee or an incidental damage fee

Initial payment
initiator:CONSUMER
scheduleType:RECURRING

Subsequent payments
initiator:MERCHANT
scheduleType:RECURRING

Account on file payments
Account on file payments are made by the consumer using a stored payment instrument. They differ from subscription and usage based payments as they are not initiated by the merchant. There's no off‑session automatic charge happening later, everything’s done with the consumers explicit action at the time and may require authentication.

Initial payment: On-session
Subsequent payments: On-session

*Examples:** One-click or in-app purchases

Initial payment
initiator:CONSUMER
scheduleType:UNSCHEDULED

Subsequent payments
initiator:CONSUMER
scheduleType:UNSCHEDULED

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Payment agreements
To ensure compatibility and compliance across all payment methods, we highly recommend always using our payment agreements API when handling recurring payments. Certain payment methods mandate its use. Learn more about payment agreements.