What is the best way to charge subscription costs?


-2

I've developting a SaaS product and would like to charge my users a subscription charge, I'm considering a model with a monthly fee and a annual discount - but now my question is this. How do I charge the customers? Do I charge them for the period and then block access until they have paid again, or is it posible to have a automatic renewal solution set up?

I think I remember tuts+ doing auto renewals once, is that sort of thing legal?

Payments Subscriptions

asked Jun 29 '12 at 20:31
Blank
Martin Kristiansen
102 points
  • You have 3 very different questions here. 2 of them are off topic on this site. – Dnbrv 11 years ago
  • @dnbrv:I'm pretty sure its one question -- how do I legaly charge setup subscriptions. – Martin Kristiansen 11 years ago
  • I have providers automatically take charges from a credit card account. I agreed to it; not sure how it could be considered illegal. – Jeff O 11 years ago

3 Answers


1

auto renewals is not illegal. it's the same as Godaddy domain. they set the auto renewal to default (I use godaddy). If the customer want to have a manual renewal to there almost expire domain, they will have to change the setting to manual renew.

for yours, it would be better when the customer subscribes your service, there should be a an option for auto renewal service.

good luck

answered Jun 29 '12 at 20:40
Blank
Simplyme
186 points

1

It is legal but the user has to check a box saying they agree to it (or hidden in terms and conditions) or be notified.

But as long as you tell the user a few weeks before they are going to get charged it should be fine.

answered Jun 29 '12 at 21:16
Blank
Adam
133 points

0

It is not illegal to have an auto renewal and from experience I have found that it is best to make sure your cutover receives an email every time they are charged their membership or subscription fee. This keeps a good customer relationship.

There are companies out there that will automatically charge your customer's credit card when needed, send emails to your customers when they are being charged to tell them why, and much more. This will streamline your business and give you more time to focus on your business. For the subscription business that I run, we use Chargify to take care of this.

answered May 3 '13 at 04:29
Blank
Jake C
1 point

Your Answer

  • Bold
  • Italic
  • • Bullets
  • 1. Numbers
  • Quote
Not the answer you're looking for? Ask your own question or browse other questions in these topics:

Payments Subscriptions