> **Description:** How charges work

# Charges

Charges are payment requests created by the merchant on the basis of an active payment agreement. The charges are processed automatically without the user having to approve the payment request in their Vipps or MobilePay app.

**TIP**

Charges **are not created automatically** based on the agreement. The merchant is responsible for creating each charge.

## Types of charges

Irrespective of the type of payment agreement created earlier, a merchant can use any type of charge for the future payments.

- [Recurring charges](https://developer.vippsmobilepay.com/docs/APIs/recurring-api/how-it-works/charges/recurring-charges-howitworks.md)
- [Unscheduled charges](https://developer.vippsmobilepay.com/docs/APIs/recurring-api/how-it-works/charges/unscheduled-charges-howitworks.md)

### Recurring charges vs Unscheduled charges

|                 | [Recurring charges](https://developer.vippsmobilepay.com/docs/APIs/recurring-api/how-it-works/charges/recurring-charges-howitworks.md)                                                              | [Unscheduled charges](https://developer.vippsmobilepay.com/docs/APIs/recurring-api/how-it-works/charges/unscheduled-charges-howitworks.md) |
|-----------------|---------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|
| Retries         | Flexible (with retry: +17% better conversion)                                                                       | NO                                                         |
| Conversion      | 96% or more                                                                                                         | 80% or less                                              |
| User Experience | See upcoming charges Manage payment sources Get smart customer notifications nudging users to fix the problem | No overview                                                |
| Bulk Charges    | YES, up to 2000 charges can be created at once                                                                      | NO                                                         |
| Rate limits     | 500 requests/minute for single charge creation100 requests/minute for bulk charge creation                    | 500 requests/minute                                        |
| Lead Time       | 1 day before charge due date                                   | Instant                                                    |

### Recommendation

 Use **Recurring charges** whenever possible for better conversion and a smoother end-user experience!

> **Full site overview:** For every page in this documentation, read [https://developer.vippsmobilepay.com/llms.txt](https://developer.vippsmobilepay.com/llms.txt).