A payment management system and a method of operating the same to receive payment before initiating an operating cycle of a cycle-based appliance is provided. The payment management system includes a payment device for receiving a non-cash payment from a user of the appliance. A payment processor communicates the payment to a controller of the appliance in the form of cycle credits, which may be stored in an encrypted credit storage bank. When a user attempts to initiate an operating cycle, the controller compares the available cycle credits to the number of required cycle credits, and only initiates the operating cycle if the number of available credits is equal to or exceeds the number of required credits. The payment management system may be included in any residential appliance and activated by the owner to enable pay-per-use functionality.