What is a recurring internet data plan?
A data plan is simply defined as a service that is offered by different mobile companies. These mobile carriers and operators allow the users to use the internet via 3G and 4G or other LTE networks.
The cost and sizes of these data plans vary from carrier to carrier. These come in a number of costs and sizes. The amount of data that you need as a consumer depends on your daily usage and your internet activities on regular basis.
Recurring Internet Data Plan:
A recurring internet data plan is defined as an internet package that has a data envelope and is renewed automatically after a specific time. For example 300 Mbps for 20 days or 2GB per month for 4 months.
If we break down this, word ‘recurring internet data plan’, we get the simple meaning. Recurring means something that occurs more than once until it is forced to stop. Data is simply information and a plan is a contract. So this term means that a contract or service that keeps going until it is canceled.
When you initially purchase the recurring data plan, you pay the full amount for the total duration. You can buy recurring internet data of your choice through your credit card or credit balance.
Different mobile companies offer different recurring internet packages. They have their terms and conditions. Some of them include the following:
A customer has the freedom to cancel or reactivate a recurring internet data plan at any time. These internet data packages will be available as per contract. These recurring mobile internet packages will be available through specific self-service channels. If a customer subscribes to the recurring internet data plan in the middle of the month, and you have already activated another recurring internet data plan, then the new package would be effective from the 1st of next month.
Moreover, the customer can have only one recurring internet mobile data at a time. The expiry date of a recurring internet data plan will be 60 days after its subscription. These recurring internet data plans are not applied to data roaming.
To understand the term recurring billing, consider an example as you have asked your shopkeeper friend to drop a list of groceries every month at your home. You both have decided to deliver the grocery on the 10th of every month.
Likewise, recurring billing happens when a merchant is providing service to the customer and charges him for these services on a pre-defined schedule. This prearranged schedule of payment requires the customer’s permission and his full information. After the permission is granted, the merchant can then automatically deduct the payment for the services he is providing.
Examples of recurring billing include gym membership fees, cable bills, cell phone bills, utility bills, etc. It is also known as automatic bill payment. The customer does not need to worry about the payment every month. He just does it once and boom! The service provider will take care of the payment every month and it will be automatically deducted from your account.
It has many advantages such as it lowers the risks such as account receivable risks. It also saves customers’ time, as they only need to sign up for the service and provide their information for once. They grant the permissions and after that as long as they are using the service, the payment will be automatically deducted from their account. In the world of cable internet, Mediacom offers an auto payment solution. You authorize Mediacom to charge you on your card each month until you cancel the option.
Types of recurring billing:
Recurring billing has two main types. These include fixed recurring billing and variable recurring billing.
In fixed recurring billing, the customer is charged the same amount every month or in every payment cycle. For example, a cable bill or a gym membership can be considered as fixed recurring billing because every month or prearranged schedule, they deduct a specific amount of fees.
On the other hand, in variable recurring billing, the amount that is collected from the consumer may vary every month or in every payment cycle. It depends on the customer’s usage of the service he is provided with. A dynamic bill is created every month and is deducted from the customer’s account.