The 'Debit Date'** feature allows you to set up an specific day of the month, between the 1st and 28th, to collect all the payments of your subscriptions.
** This feature is only available to recurring types of prices with a monthly collection frequency.
There's 3 options when it comes to setting up a debit date for your prices:
Charge the full amount of the service when creating the subscription
Choose the 'Total debit' option in the Debit Type dropdown field if this is the wished billing behavior. By choosing this type of debit date, the customer will charged with the full amount of the subscription in both cases: when creating the subscription and upon the selected debit date.
Example:
Subscription's amount: $100 USD.
Subscription's creation date: October 22nd.
Selected Debit Date: 28th of each month.
In the given example, the customer will be charged with $100 USD on the 22nd and $100 USD just 7 days after, on the 28th, as per the selected debit date. From the second recurring payment onwards, the subscription will be collected on the 28th of each month.
Apply no charges when creating the subscription
Choose the 'No initial charge' option in the Debit Type dropdown field if this is the wished billing behavior. By choosing this option, the customer won't be charged when creating the subscription, only on the closest following debit date.
Example:
Subscription's amount: $100 USD.
Subscription's creation date: October 22nd.
Selected Debit Date: 28th of each month.
In the given example, the customer won't be charged on the 22nd, only 7 days after, on the 28th, as per the selected debit date.
Proportional charge following a days-used billing model.
Choose the 'Proportional debit' option in the Debit Type dropdown field if this is the wished billing behavior. This will allow you to make proportional debit according the used days of the service.
There's 3 possible scenarios when it comes to a day-used billing model:
If the subscription is created on the same selected debit date
The customer's will be charged with the full amount of the subscription.
If the subscription is created before the closest selected Debit Date.
Example:
Subscription's amount: $100 USD.
Subscription's creation date: October 22nd.
Selected Debit Date: 28th of each month.
How much should the customer be charged for?
In this case, the platform will automatically calculate the price of the service per day and the days the service will be used before the closest selected debit date.
Price's amount/Amount of days in Octubre = Price of the service per day$100 USD/31 days= $3.2 USD/day.
Secondly, the platform will determine how many days should the customer be charged for using the following formula:
Debit date - day on which the subscription was created = days the customer needs to be charged for.
28-22 = 6 days.
Finally, the amount to be charged will be calculated using the following formular:
Price of the service per day* Days the customer needs to be charged for = amount to be charged.
$3.2 USD/day* 6 days = $19.2 USD.
The customer will be charged $19.2 USD for the used days before getting to the closest selected Debit Date. From the second payment onwards, all debits will be executed on the 28th of each month.
The subscription is created after the closest selected Debit Date.
Example:
Subscription's amount: $100 USD.
Subscription's creation date: October 20th.
Selected Debit Date: 15th of each month.
How much should the customer be charged for?
In this case, the platform will automatically calculate:
a. How much does the service's cost per day and how many days should the customer be charged for in octubre.
Price's amount/31 days = Cost per day in octubre.
$100 USD/ 31 days = 3.2 USD/day.
To calculate how many days the customer should be charged for, the platform use the following formula:
Total days in octubre - Date of subscription creation = days to be charged for in october.
31 days - 20 days = 11 days.
Finally, we will determine the full amount to be charged for the days used in october:
Cost per day in octubre*days to be charged for in october = amount to be charged for the days used in october.
3.2 USD/day * 11 days = $35.2 USD to be charged corresponding to octuber.
b. How much does the service's cost per day and how many days should the customer be charged for in november.
Price's amount/31 days = Cost per day in november .
$100 USD/ 30 days = 3.3 USD/day.
To calculate how many days the customer should be charged for, the platform use the following formula:
Total days in november - selected debit date = days to be charged for in november.
30 days - 15 days = 15 days.
Finally, we will determine the full amount to be charged for the days used in october:
Cost per day in november*days to be charged for in november = amount to be charged for the days used in november.
3.3 USD/day * 15 days = $49.5 USD to be charged corresponding to november.
We will add both amounts in order to find out the total amount to be proportionally charged.
Amount to be charged for the days used in October + amount to be charged for the days used in November = Total amount to be proportionally charged.
$35.2 USD + $49.5 USD = $84.7 USD.
Help yourself out by using this video tutorials with captions:
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