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Rebill

Rebill — a recurring charge made to a user after the first payment. The term is most commonly used for subscriptions: the user signs up for a service once and links a payment method, after which subsequent payments are processed automatically at set intervals.

Rebills are used in online services, mobile apps, dating, SaaS, and other products with recurring payments. Charges may be made, for example, once a week, month, or year — depending on the subscription terms.

How a rebill works

When signing up for a subscription, the user agrees to recurring payments. After the first payment, the payment method is saved in the system, and the service automatically processes a new charge on the next billing date. The user does not need to re-enter their card details and confirm the purchase each time.

For example, a user signs up for a subscription that costs $10 per month. The first $10 is charged when the subscription is activated, and another payment of the same amount is processed one month later. This recurring charge is the rebill.

A rebill may also occur after a trial period. For example, a service provides several free days or access at a reduced price and then switches the user to a regular paid subscription after the trial ends. Charges then recur according to the set schedule while the subscription remains active.

Rebill in traffic arbitrage

In traffic arbitrage, rebills are used in offers with a subscription model. Here, not only the acquired user’s first payment matters, but also how many subsequent payments they make.

An affiliate program may also pay the affiliate marketer a commission on recurring payments. For example, a user signs up for a subscription through an affiliate link and continues paying for it for several months. If the offer terms include payouts on rebills, the affiliate will also earn revenue from subsequent charges.

However, an active subscription does not mean that every subsequent rebill will be successful. By the next payment date, the user may have canceled the subscription, the card may not have sufficient funds, or the bank may decline the transaction. In some services, the system makes additional charge attempts after a failed payment, but the specific process depends on the service.