Payment processing

We suggest PayPal with WHMCS (way better). PayPal is a great choice for a merchant gateway and will due fine and has no hassles when comes to transactions and stuff like that. Some of our clients feel safe only dealing with PayPal as they don't trust direct transactions via credit card.

exactly what I was going to say.
 
clientexec is very easy to use, but whmcs has more features.
Both can do what you mentioned. I prefer paypal+whmcs.
If you are web hosting provider I think that you need to prefer what your customers prefer first of all.
 
By all means, get a billing system. You don't want to be poring over a spreadsheet or index cards to figure out if someone has paid this month or not.
 
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