# How to Set Up Recurring Billing Without Expensive Software
Recurring billing platforms like Stripe Billing, Chargebee, and Recurly are powerful tools — but they come with a price tag that is difficult to justify for small businesses with a modest number of recurring clients. Most charge a monthly platform fee on top of the standard credit card processing percentage, creating a double layer of costs that can easily exceed $200–$300 per month for a small operation.
For businesses with fewer than 100 recurring clients, there is a simpler, dramatically more affordable approach: **CHAX Check-by-Phone**. This guide explains how to set up a fully functional recurring billing system using CHAX, without any monthly subscription fees or complex software integrations.
## What You Need
Setting up recurring billing with CHAX requires three things: the CHAX Check-by-Phone software (a one-time purchase), a laser printer equipped with MICR toner, and blank check stock. That is the entire infrastructure. There are no APIs to integrate, no payment gateways to configure, and no recurring platform fees to manage.
## Step 1: Obtain a One-Time Authorization from Each Client
Before you can process any recurring payment on a client’s behalf, you must obtain their explicit verbal authorization. This authorization must cover the following elements:
– The client’s agreement to be billed on a recurring basis
– The billing amount (or a range, if the amount varies)
– The billing frequency (e.g., the 1st of every month)
– The client’s bank account and routing number
It is best practice to record this authorization call and to follow up with a written confirmation email that the client can reply to, creating a documented paper trail. This protects both you and the client in the event of any dispute.
## Step 2: Store Client Information Securely
CHAX allows you to save client payment information within the software for easy reuse. Each billing cycle, you simply open the saved client record, confirm the payment amount, and print the check — without needing to call the client again, provided the authorization covers recurring billing.
For businesses that prefer to maintain their own records, a simple spreadsheet with client name, bank routing number, account number, and authorized billing amount is sufficient. The key is to store this information securely, with access restricted to authorized personnel only.
## Step 3: Print and Deposit on Your Billing Date
On your designated billing date each month, open CHAX, load the client records one by one (or use the bulk import feature for larger volumes), and print all the checks in a single batch. The entire process for 20–30 clients typically takes less than 15 minutes.
Once printed, the checks can be deposited via your bank’s mobile deposit app, at a branch, or through an ATM that accepts check deposits. Funds are typically available within one to two business days.
## Comparing CHAX to Recurring Billing Platforms
| Feature | CHAX Check-by-Phone | Stripe Billing | Chargebee |
| :— | :— | :— | :— |
| **Monthly platform fee** | $0 | $0–$800+ | $249–$599+ |
| **Per-transaction fee** | $0 | 2.9% + $0.30 | 2.9% + $0.30 |
| **One-time software cost** | ~$149 | $0 | $0 |
| **Requires customer credit card** | No | Yes | Yes |
| **Works for unbanked customers** | Yes (bank account) | No | No |
| **Annual cost (50 clients at $100/mo)** | ~$149 | ~$1,920 | ~$4,908+ |
For small businesses with a stable, known client base, the cost advantage of CHAX is overwhelming. The software pays for itself within the first month of use.
## Who This Approach Works Best For
CHAX recurring billing is ideally suited for businesses where the client relationship is ongoing and the payment amount is predictable. Strong use cases include independent insurance agents collecting monthly premiums, property managers collecting monthly rent, fitness studios collecting membership dues, and professional service firms billing monthly retainers.
It is less suited for high-volume e-commerce businesses or subscription boxes where customers are self-enrolling online — in those cases, a full recurring billing platform with a customer-facing portal is the more appropriate solution.
## Getting Started
Download a free trial of CHAX Check-by-Phone at [www.chax.com/check-by-phone.htm](https://www.chax.com/check-by-phone.htm) and process your first recurring payment today. No monthly fees. No contracts. No complexity.