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Payment plans for business

New York, NY |

Is it legal to have my clients sign for "recurring payments" for payment plans if they agree and give their credit info? If so what type of agreement do I need them to sign?

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Attorney answers 3


So long as the client agrees to the recurrent payments, it is legal; you would obviously want to avoid any unauthorized use of a customer's credit info. +A clause outlining the repayment terms would suffice, although you should consult with counsel to ensure that it is drafted in such a way to protect your interests and adequetely place customers on notice of their rights and cancelation policies.

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A detailed agreement specifying the price and the service to be rendered over a specific time period and payments by means of a credit card is possible. Speak with an attorney to prepare the agreement.

If this answer is helpful, then please mark the helpful button. If this is the best answer, then please indicate it. Thanks. For further information you should see an attorney and discuss the matter completely. If you are in the New York City area, then you can reach me during normal business hours at 718 329 9500 or


As long as the agreement is drafted properly and if you protect that financial information properly, yes.

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