By default the recurring billing is disabled in the configurations. Here are the instructions to enable that.
1. Update orderPipelineConfiguration section in web\DSC.config
a) Add the yellow background line to "Credit Card" processor.
<add name="CreditCard">
<processors>
<clear />
<add name="OrderConfirmationEmail" />
<add name="CreditCardAuthorization" />
<add name="InventoryStockCheck" />
<add name="CreditCardCapture" />
<add name="OrderPackageAndShip" />
<add name="CreateGiftCertificate" />
<add name="RecurringBillingUpdate" />
<add name="OrderCompleteEmail" />
</processors>
</add>
b) Add the new "Recurring" processor.
<addname="Recurring">
<processors>
<clear />
<addname="CreditCardAuthorization" />
<addname="InventoryStockCheck" />
<addname="CreditCardCapture" />
<addname="OrderPackageAndShip" />
<addname="RecurringInvoiceEmail" />
</processors>
</add>
2. Restart the OrderPipeline service