Arrears suscriptions and prorate issue

Retail & Point of Sale
1

Hello. I am looking to cover the need that we have. We offer mobile phone suscriptions that are charged in arrears. So if a person signs up for a specific rate, they will be charged proporcionally at the end of the billing cycle for the proportional amount due, the next cycle is complete. Our billing cycle is monthly, but we charge on the 5th of the following month. So, if someone signs up on 27th of the month, on the 5th of the following month, they should be charged 3 days of service. On the next 5th the would be charged 100% of the rate.

I have tried several subcriptin apps but none adapt to this need.

Any ideas as to how we can solve this?

2

I charge my clients monthly in arrears and the cut off date is the end of the calender month and the order and billing is launched on the 5th of the following month.

Example:

If someone signs up on the 15th of the month, I need an immediate order to be created so as to accept the suscription and a 0€ charge to be made to validate the card. On the 5th of the follwong month, an order is to be created on that suscription, but only from the 15th to the end of that month. The following month the suscription will be launched on the 5th of the following month for 100% of the suscription. The process is:

  1. Sign up and 0€ charged. Sign up is in January.

  2. On the 5th of the following month, which would be february, the suscription charge is prorated to the days from the initial sign up to the cut of date which is the end of the month which the client signed up. Be that 1 day up to 29 days… in this example it would be 15th January - 31st January.

  3. On the 5th of the following month, which would be march, the suscription charge would be 100% to cover the whole month of february.

  4. All following charges are 100% monthly.

3

Hi and welcome!

You could use one of the established subscription apps, discount the first month when setting up the subscription and regularly adjust the subscription contract to have the second charge discounted to the prorated amount (this will likely need to happen manually in the subscription app interface) and after that the subscription renews at the regular price.

Most subscription apps don’t have the capability to automate this out-of-the-box - so you will likely need some sort of automation to scale this. You could:

  1. Custom develop a subscription app from scratch (lot of effort/expensive)
  2. Choose an app that has an API (i.e. Recharge, Seal) and develop the automation using code/(no-code/low-code platform)

How do you handle plan cancelations? Do you need a custom designed portal or will your customers interact with your customer support?