Setup fees vs monthly fees

[Ragy]

Hi! If I have a subscription product where a customer pays $50/month. Does the monthly fees start since day 1 or should I make have a setup fee to cover the first month? Thanks!

 

[Sonam]

We would like to let you know that the moment your subscription will be purchased for eg – A customer bought the subscription today i.e. 16th April for $50 & his billing is on recurring then the next charge would be taking place on 16th May. Also, the reminders for payment are sent in automation 7 days before the due date.

Therefore, the setup fee is optional that could be levied as per your requirement as a one-time charge at the starting of a subscription.

 

[Ragy]

Just to confirm, so they will or won't be charged anything on 16th April?

 

[Sonam]

The customers will be charged from the first transaction itself i.e. 16th April & the billing for the same will be continued as per the plan duration, for eg - in case of monthly recurring the next charge will be deduct on 16th May accordingly.

Since, products & plans in PSB can be designed in many different ways, therefore the payment deduction totally depends upon the type of plan. For reference, please follow this link -

 

[Ragy]

Perfect, thank you so much!