Subscription cycle and charge
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Table of Contents
1. Purchase:
- Subscription is charged for the whole cycle (e.g. one month or one year)
- A cycle must be at least one month.
- A cycle can be customized (e.g. two or six months).
Example: Monthly subscription purchased on 16 Nov 2020, subscription price = $50
- The subscription is active from 16 Nov to 15 Dec 2020, both dates inclusive.
- Subscription charge = full one month = $50
2. Change to the subscription that does NOT affect the expiry date:
Action | Description | Charge |
---|---|---|
Purchase add-on | Increase the quantity of the add-on SKUs to an existing subscription | Pro-rated the add-on price/cost to the expiry date. |
Remove add-on | Decrease the quantity of the add-on SKUs to an existing subscription | No |
Upgrade | Change the primary SKU to a higher value one. | Pro-rated the difference (offset) to the expiry date. |
Downgrade | Change the primary SKU to a lower value one. | No |
Example: Today is 20 Nov 2020 and the expiry date is 15 Dec 2020.
- Purchase a number, price = $10 → charge = $7 ($10/30 days * 21 days of usage)
- Remove a number that has been purchased at $7 → charge = refund = 0
- Upgrade the plan from $50 to $90 → charge = $28 (($90-$50) /30 days * 21 days of usage)
- Downgrade the plan from $50 to $10
3. Change to the subscription that extends the expiry date (refund is not applicable in all cases):
Action | Description | Date to trigger | New expiry date |
---|---|---|---|
Extend by cycles | Subscription is extended manually by cycles. | Any time before expiry date | Same date, different month |
Extend to specific date | Subscription is extended manually to a specific date. | Any time before expiry date |
A date chosen by the user. At least one month. |
Renew with alignment |
Subscription renews auto by the system and aligns. Alignment occurs at the first renewal. |
7 or 8 (legacy) before the expiry date | The end of next month |
Renew without alignment (rolling) | Subscription renews auto by the system and remains the expiry date through the months. | 7 or 8 (legacy) before the expiry date | Same date, different month |
Example: monthly subscription fee = $50, expiry date 15 Dec 2020.
- Extend 3 months:
- Date of action 20 Nov 2020
- New expiry date: 15 Mar 2021.
- Fee = $150 = $50*3 month
- Extend to 10 Feb 2020:
- Date of action 20 Nov 2020
- New expiry date: 10 Feb 2020.
- Fee = $93.55 = $50*1 + $43.55 = 1 month (16 Dec - 15 Jan) + 27 days (from 16 Jan - 10 Feb)
- First renewal (with alignment):
- Renewal date: 08 Dec.
- New expiry date: 31 Jan 2021 (end date inclusive).
- Fee = 1 month (16 Dec - 15 Jan) + 16 days (from 16 Jan - 31 Jan). This first renewal fee will be Monthly subscription fee x (1+ 16/31).
- Second renewal onwards:
- Renewal date: 24th or 25th of the month.
- Fee = $50 = 1 month
First buy | First renewal | Second renewal | |
---|---|---|---|
Valid period | 16 Nov - 15 Dec 2020 | 16 Dec - 31 Jan | 1 Feb - 28 Feb |
Fee | 1 month | 1 month + 16 days | 1 month |
- Rolling renewal
- Renewal date: 08th every month
- New expiry date: 15th every month
- Fee = 1 month
4. Cease a subscription: Unsubscribe and Terminate:
Unsubscribe | Terminate | |
---|---|---|
Description | Stop renewing the subscription but still want to use it. | Stop using the subscription/service right away. |
When to do | Before the renewal date |
Any time by user. 28 days after the subscription expires, by the system. |
Undo ability | Yes, 7 days before the expiry date | No |
Usable period | Until expiry date | No more |
Charge | No | No |
Refund | Not applied | Applied with conditions (see 5. Refund) |
5. Refund:
When an active subscription is terminated, the user will be refunded automatically with the amount equals to:
- Full amount that the user has paid, if the termination date is within 14 days of activation
- The rest of the duration of the subscription, in months, if the termination date is after 14 days of activation.
- Activation date is the date that the subscription starts a new cycle (NOT the deduction/transaction date)
Example:
- Monthly subscription fee = $50, purchase on 15 Nov 2020, expiry date 14 Dec 2020 → activation date = 15 Nov 2020
- Terminate on 26 Nov 2020 (within 14 days since 15 Nov)
- Refund = $50
- Terminate on 10 Dec 2020 (more than 14 days since 15 Nov)
- Refund = $0
- Terminate on 26 Nov 2020 (within 14 days since 15 Nov)
- Monthly subscription fee = $50, expiry date 15 Dec 2020. On 06 Dec 2020, extend 3 months to 14 Mar 2021. Extension fee = $150 = $50*3 month → activation date = 16 Dec 2020.
- Terminate on 20 Dec 2020
- Refund = $150 (full)
- Terminate on 10 Jan 2021
- Refund = $100 (2 months: 15 Jan - 14 Feb and 15 Feb - 14 Mar)
- Terminate on 20 Jan 2021
- Refund = $50 (1 month 15 Feb - 14 Mar)
- Terminate on 20 Feb 2021
- Refund = $0 (no full month is found)
- Terminate on 02 Mar 2021
- Refund = $0 (no full month is found)
- Terminate on 20 Dec 2020
6. Status of a subscription:
- Active subscription: You can use it normally.
- Expired and terminated subscription:
Expired | Terminated | |
---|---|---|
Reason |
Subscription is on auto renewal but failed to both renew and recover. Subscription is NOT on auto renewal. |
Auto becomes terminated 28 days after a subscription expires. Customer requests to terminate. |
Usage period | No more | No more |
Ability to reactivate | Yes, within 28 days. | No |
Configuration storage | Yes. 28 days after the expiry date. Can recover if the subscription is activated within this period. | No |
Timeline of a subscription:
![](https://d2x3xhvgiqkx42.cloudfront.net/c94ab348-5fb1-4c1d-89b1-fa79e3e916d0/81ec6e6f-2b1b-45dc-9193-b23c4a10d966/2021/07/05/9e1bccd0-159d-4817-9585-4112bfe89e45/8f459a23-4e72-4eb7-8c5d-23aca808e3fa.jpg)
Example: Subscription lifecycle:
Status (period charge). E.g: Active (10 Jan - 09 Feb)
![](https://d2x3xhvgiqkx42.cloudfront.net/c94ab348-5fb1-4c1d-89b1-fa79e3e916d0/81ec6e6f-2b1b-45dc-9193-b23c4a10d966/2021/05/21/e780a177-91d5-4cef-9d5c-0ea68cb6a397/d40b4ff3-5494-4aab-8c2d-d28b767f841c.png)