When do subscription services charge you every month? When does that payment period end?


2

When subscription based services charge you a monthly fee, when do they charge it? First of the month? Same date next month? 30 days from original pay?

For example if I pay for a subscription on the 1st and someone else pays on the 15th, when will my subscription end, and when will I be charged again? Same question for the person who pays on the 15th.

Pricing Payments

asked Oct 28 '09 at 08:40
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Vindexus
126 points

2 Answers


2

Most services charge me on the same monthly day on which I made my first payment. If its something like pay per use, sometimes they charge bimonthly or so. To my experience both customers and providers prefer this schedule.

Providers -

  • Distributes work load throughout the month so that your staff is not overburdened at some days of the month and has no work on other days of the month.
  • Adjustment of amounts to a specific date is difficult for new customers. They get confused about why they are being charged arbitrary amounts at arbitrary dates. People are weak at math.

Customers -

  • Many people pay on behalf of their bosses, wives, kids and so forth. So all they see is some amount and a date on their cc billing.
  • Find it easy to know that they will be charged so and so, around the same day every month. So they can make decisions/plans accordingly.
  • Even if they "upgrade" or "downgrade" services, they expect being charged on the same day. Like if they upgrade you charge extra amount immediately.
Always stick to one schedule and clearly let your customers know that schedule.
answered Oct 28 '09 at 20:02
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Arpit Tambi
1,050 points

1

It depends, but many services tend to bill on a single day each month and pro-rate new sign-ups based on the remaining days.

There are several advantages to paying on the say day every month, but mostly it allows the business to deal with recurring billing issues in one swoop. If 1% of clients will have problems (credit card declined, expired, "what is this Blah,Inc" who charged me, etc), then dealing with all of those at once will be easier for staff.

It also help with cashflow management, since you will get a predicitable lump sum of money on the same day each month.

answered Oct 28 '09 at 11:53
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Alex Papadimoulis
5,901 points
  • Interesting. Where I live that is only true for small companies. one you hit a specific size, with dedicated stagg, it is besser to distribute the load evenly over the month. – Net Tecture 9 years ago

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Pricing Payments