rebill

A rebill is a term used in the context of credit card transactions to describe a subsequent charge made to a customer's credit card after the initial authorization. This process is often utilized by merchants to charge additional amounts to a customer's card without requiring them to re-enter their payment information. Rebills are common in subscription-based services, where customers are billed regularly for ongoing access to a product or service.

The rebill process typically involves the following steps:

1. Initial Authorization: The customer provides their credit card information, and the merchant authorizes a small amount (usually $1) to verify the card's validity.

2. Recurring Charges: After the initial authorization, the merchant can charge the customer's card at regular intervals (e.g., monthly, annually) for the agreed-upon amount.

3. Management: Merchants often use payment gateways or subscription management systems to handle rebills efficiently, ensuring timely and accurate billing.

Rebills offer convenience for customers by simplifying the payment process and for merchants by automating recurring revenue. However, it is essential for merchants to comply with relevant laws and regulations, such as the Fair Credit Billing Act in the United States, to ensure transparency and protect customers' rights.