Questions about how billing works for your Membership subscribers?
You're in the right place! 🎉
We've put together some Frequently Asked Questions about how the billing side of Memberships works for your members.
For the most part, our billing approach is based on Membership industry standards.
What happens if someone pays for a full year but cancels at some point before that year? Do they get any sort of prorated refund?
If a member cancels before the end of their yearly subscription, they will not be issued a refund for their remaining time. This is an industry standard, as the member is typically getting a better deal for signing up for a year upfront.
If you want to issue them a partial refund, you will need to login to your Stripe account and issue a partial refund through there.
Are members sent reminders before they are auto-renewed in the monthly or yearly billing?
Per industry standard, Members get an email notification after the payment is processed, and are not sent a reminder before their monthly or yearly bill is processed.
How do failed charges get retried?
Stripe uses Smart Retries to retry card charges at the optimal time to increase the chance of a successful charge. We strongly recommend using Stripe's Smart Retries, which is the default setting.
If you need to change the retry schedule, you can do so by adjusting your subscription settings in Stripe. For Podia to function properly, it is important that the "Subscription status" remains set to "cancel the subscription" when all retries fail.
If someone chooses the annual payment option and pays for a full year upfront, will they be able to renew at the same price (even if the "public" price goes up)?
Whatever price people are charged when they sign up for the Membership Plan is their price for life. This is an industry standard (and also due to how Stripe works). You won't be able to change or lower the price for a member unless you or they cancel their subscription and sign up for a new one.
Can someone switch from monthly to annual? If they do, would they get the annual option from the plan they originally signed up for or would they only be able to get the current annual rate?
Currently, your members cannot switch from monthly to a yearly or yearly to monthly on the same plan, but it is a feature that we are planning to add. We'll have more details about how this will work when this feature launches. In the meantime, they can switch from Plan A to Plan B.
How Stripe behaves for customers swapping membership plans
The long and short of it: Stripe essentially prorates/bills the swapped plan in the next billable invoice. So, if the customer purchased Plan A for $100 on August 1, 2020 and swapped to Plan B for $150 on September 1, 2020, the prorated difference PLUS the new annual $150 charge would be billed on August 1, 2021.
That said, there is a process you can follow to charge your customer immediately after a swap to avoid proration. You must:
Go to the customer profile in the Stripe dashboard
Scroll down to Pending invoice items to where the prorations are listed and click Invoice now. This merely generates the draft invoice — it does not charge the customer.
If you would like to immediately charge your customer, you must click into the draft (scheduled) invoice that was just created. Click the Charge customer button. If you don't manually perform this step, Stripe will automatically attempt to charge the invoice within 1-2 hours.
BIG DISCLAIMER: Stripe does not associate these prorated invoices with a subscription, and because our app does not recognize any external invoices, the proration payment won't appear in the customer's Podia dashboard.
Any other questions we can answer? 🤔
Please send us an email at [email protected] or message us on live chat!