I have a web service which publishes and hosts certain information for my users. Each user's editing interface is separate from the information they've published. I'm billing for it using Stripe subscriptions, but I'm having trouble coming up with a workable way of handling unpaid subscriptions. Here's the logic I want to implement:
Upon the first failed billing attempt, my app should lock down the user's editing interface; instead, it should present them with a page with options for resolving their payment problem. However, information they've published will still be published, so a late payment doesn't interrupt things for their visitors.
Upon the last failed billing attempt, 15 days later, my app should remove information they've published as well. At this point, the user's editing interface is replaced with one that allows them to either re-activate their account with a new credit card, or completely delete the account.
If the user chooses to re-activate the account, they should not get a trial period
If the user re-activates, they should also have to pay for the 15 days they previously skipped out on, either by having their first billing period shortened by 15 days or by having a charge equal to 15 days' service added to their first bill.
#1 and #2 are very easy to implement if I watch for the right webhooks—just redirect requests for a delinquent customer, or a customer with a deleted or unpaid subscription, to a "fix this problem" page. #3 is pretty easy too—just create the subscription with trial_end set to now.
It's #4 that's tricky. How do I determine exactly how long the user's last invoice went unpaid before their subscription was canceled? How do I shorten the first billing period of the new subscription? Alternately, how do I pro-rate the customer's last invoice total to represent the portion that I actually provided to them, so I can add that amount to the new invoice? (I know I can create an Invoice Item to charge for the amount before I start the new subscription, so at least that's a possibility.)
Finally, does Stripe's "Mark Subscription Unpaid" option help with any of this? It looks like it keeps creating invoices but doesn't try to charge for them; I don't think that's what I want here.
You can definitely do all of that with Stripe's subscriptions. As you mentioned, the first two questions should be solved with webhooks. You would listen for invoice.payment_failedon your end to detect when a payment fails and immediately block you UI asking your customer to update their card details.
To update their card details you can use Stripe Checkout and just not set the data-amount parameter so that it doesn't display a price to your customer. Here is an example for this:
<form action="/charge" method="POST">
<script
src="https://checkout.stripe.com/checkout.js" class="stripe-button"
data-key="pk_test_XXXX"
data-image="/square-image.png"
data-name="Demo Site"
data-description="Update Card Details"
data-panel-label="Update Card Details"
data-label="Update Card Details">
</script>
</form>
Each time your customer tries to update his card, you would use the Update Customer API and pass the new card token in the card parameter. This will delete the default card on the customer and replace it with the new one. It will also try and pay the latest invoice of each subscription in the "Past Due" state. In your case it means that the latest invoice still in retry mode will be attempted to be paid. This does not count as a retry and can be seen as independent. If it succeeds, you just reenable the UI otherwise you continue asking the customer to update his card details.
When you reach the fourth failed payment you will get a customer.subscription.canceled if that's what you set up in your retry settings in the dashboard. You can detect that it's an automatic cancelation by checking the request key on the event and making sure it's null. In that case you block the UI/account completely for your customer.
For the last 15 days, if I understood your flow correctly, the customer hasn't really been able to use your application since you locked down the UI partially. But if you still want him to pay for that amount, you should store in your database that the customer owes you $X for the 15 days he couldn't use the subscription.
Later on, your customer finally comes back and want to reenable his account. At that point you inform him that the payment flow will restart from today and that you will charge him for the extra 15 days he missed before. To do that, I would use Invoice Items which will allow you to add an extra amount to the first invoice automatically. You would follow those steps:
Create the invoice item for $X for your customer.
Create a new subscription to your plan setting trial_end to "now" in case you have a trial period set by default on your plan.
This will automatically create the first invoice for the plan amount and add the invoice item created before.
Another solution here would be to reopen their latest closed invoice that wasn't paid and use the Pay Invoice API. When this happens you know your customer paid you for a full month now instead of just the 15 days he owed you. In that case you would create a new subscription and set a trial period of 15 days so that he starts paying again after that trial.
I wouldn't use the "Mark as unpaid" option here because you completely lock the customer out of your application. This feature for me is to be used when you let your customer use your application and plan to charge him in a few months for each of the invoices. This would be used for an electricity provider for example who would keep your electricity on for multiple billing cycles and continue to try charging you for each invoice.
The amount your customer really owes you in that case is dependent on the number of retries you allow and the days between each retry. What you can do here is use the created value on the invoice and compare it to the current time when you get the customer.subscription.canceled to determine how much time passed and calculate the proration of how much your customer owes you at that point.
Related
I know I can pre-auth a stripe subscription with a trial period. I want to pre-auth the 2nd, 3rd, 4th, nth subscription payment. The info we are sending out is time critical and if their subscription lapses due to NSF or something else, it would be nice for them if they could rectify the problem BEFORE it lapses.
There is a pending invoice you can get for a subscription, and you can create a payment intent with an invoice ID so that when the invoice is paid, the payment intent (that captured the money) will be used to collect the money. BUT the pending invoice doesn't have an ID until one or 2 hours before they try to collect the money which is 3-4 days too late.
Has anyone figured out how to pre-auth subscription payments other than the first one?
Is there a subscription engine I could use (with stripe/paypal/venmo) that would mean I could quit using the deficient stripe subscription system?
Subscription invoices don't exist until the renewal of the billing cycle, and the underlying payment intent is created by the invoice. It's not supported to "pre-auth" subscription payments. Instead, you need to handle payment failures when those occur, optionally by letting Stripe handle that for you.
If you want to have successful payment in advance of some time-sensitive event, then I'd suggest one of two alternatives:
Shift your billing cycle to invoice 3-4 days ahead of what you have set now, allowing you time to recover from payment failures before the delivery timing.
Alternatively you would implement your own recurring payments using saved payment details. You would similarly want to authorize the payment ahead of time to allow for recovery. You could optionally use manual capture to defer capture until the time of delivery.
I have a number of users who are currently subscribers to a monthly subscription.
For business reason, I want to be able to
1) Charge the customer when he decides to subscribe to our plan
2) Let the subscription become effective a number of days after the purchase
Currently a charge is immediately attempted when a subscription is added to a customer in stripe.
I want to stick to the stripe subscription because a) I still want to have stripe to manage subscription for me in future dates, and b) I have written a lot of code for the subscription model.
Is it feasible at all to demarcate the charge/invoice and the subscription start date?
You can control the time when the subscription actually starts (i.e. when Stripe will start billing the customer) by using the trial_end parameter in your subscription creation request. Simply set the value of the parameter to the timestamp of the exact time you wish Stripe to start automatically billing the customer.
If I understand your desired payment flow correctly, you'd want to do something like this when a customer signs up:
Collect and tokenize the customer's payment information (using Elements or Checkout).
Using the resulting token, create a customer object and save the resulting customer ID in your database.
Create a one-off charge using the customer object for the first payment.
Create a subscription using the customer object and the trial_end parameter set to the time you want Stripe to start automatically billing the customer.
See https://stripe.com/docs/subscriptions/trials for more information about using trial periods.
This is possible now through Stripe Subscription Schedules. With that, you can create a one phase schedule that starts in the future. By default, this will start the subscription on the date you want, automatically renew, and charge the customer on the start date. Also by default, it will immediately perform a transaction to pay for the subscription.
I found the required iterations to be a bit confusing. Essentially that is a multiplier against how many times the original price's interval repeats before moving on.
If all you want to do is start a subscription price in the future, use the Subscription Schedule API call. Create an items array of 1. Set the price_id of the price, the iterations on that item, and the start_date to the unix timestamp you want to start the subscription.
Stripe has different use cases for subscription schedules. The first one they list is exactly this purpose, starting and charging a subscription on a future date. Look through them if you want to adjust some more, like making the first phase a trial period instead.
Say we've setup a Stripe Subscription plan. i.e. $30/mo. (Note: the billing/account info is stored on Stripe.)
Let's say we want to offer the option to the customer to buy a year of the service upfront, and if they do, they only pay $25/mo (i.e. $300).
Is there any way to conceptually link the "paid upfront" payment, and the Subscription plan? There'll related, except the second one is simply being paid up front, and at a discount because of it.
Or is the second situation simply an unrelated charge to the setup plan/subscription, and just submitted as a charge object?
(I want to make sure I'm organizing payments in Stripe the best way).
There's no universal "best way", it's up to you to decide which way is best suited for your application.
The simplest way, API-wise, would be to create a one-off charge for the yearly amount. But it is then up to you to track that the customer has paid for an entire year and should have access to your service during that time (if that's applicable to your business model).
If you'd rather have the customer being tracked as a subscriber on Stripe's end, what you can do is set up another plan for the correct amount and interval (i.e. $250/year).
Then, when a new customer signs up for this offer, you would:
subscribe them to the plan (this will immediately charge the customer for the $250 periodic amount)
immediately cancel the subscription with at_period_end set to true. This will prevent the customer from being billed again in one year, but will leave the subscription active until then.
I was using your stripe payment gateway for a while then one day one thing came to my mind. I would like to explain it with an example.
Suppose I am a customer and subscribed to some app. So you will deduct that monthly charges every month. Now what happens is my card got empty and the subscription renewal date is near. As I was not having enough money in my card I got logged out from the app and stripe kept trying my card. Then to re-login to app I was asked to enter the card details again. Now this time I used another card and got logged in successfully as a new user on the app (as my status was marked as 'not renewed' in the database).
So now my questions are:
What will happen if I put some money in my previous card?
Will I get charged twice every month?
How can handle this equation?
Have you understood my point of view?
With Stripe, users (merchants) can set a retry schedule for recurring payments in their account settings: https://dashboard.stripe.com/account/recurring. There can be up to 3 retries after the initial attempt, each retry separated by 1 to 7 days from the previous one.
If all payment attempts fail, users can choose the final fate of the subscription:
cancel it automatically
mark it as unpaid
leave it as-is
If you update a customer with a new payment source, for each of the customer's current subscriptions, if the subscription is in the past_due state, then the latest unpaid, unclosed invoice for the subscription will be retried.
I am using Stripe to process payment in our product. I have the following issue,
I have a monthly plan and subscribed a customer to that plan, now I would like to test the invoice.payment_failed webhook handler whenever the payment fails on that card. However, I need to either wait minimum 1 day to test the same according to the options given in Stripe configuration.
I have checked other solutions which suggests to use a subscription with a short trial period and test the failure webook when the trial period ends, but I do not want to have a plan with a trial period. I really would like to test the failure payment hooks with the real plan with no trial in a short period (as I need to see what kind of values are passed in each attempt/call to check the number of attempts and take a decision for each attempt in the product based on that).
Is there any other way to achieve this, any help would be greatly appreciated.
Thanks
You don't have to set a trial period on the plan itself -- you can simply set one on the individual subscription. This is the recommended way to test this, since this way you can set up a trial period of a few seconds.
In summary:
create a plan with the parameters you want
create a customer with a card that will be declined, e.g. 4000 0000 0000 0341
create a subscription with trial_end set to a few seconds in the future
The subscription will be successfully created (because of the trial period, there's nothing to pay right away). A few seconds later, the trial period will end and an invoice will be created (note: in test mode, it can take a few minutes after the end of the trial period for the invoice to be created). Approximately one hour after the invoice has been created, it will be closed and payment will be attempted.
Since the card you attached to the customer will always be declined, payment will fail and an invoice.payment_failed event will be generated.