Subscription Cancellation

Introduction

In case a subscription that which is in active state shifts to an inactive state and no further renewals are possible, then it is canceled subscription. The cancellation of an active subscription can take place anytime. Below given are the five ways in which the cancellation of a subscription can take place:

Cancellation Reasons

There could be various reasons for the cancellation of the subscription. When a subscription gets canceled due to any of the below listed cases, the reason for cancellation will be notified to you by subscription canceled event.

  • Not Paid
  • No Card
  • Fraud Review Failed
  • Non Compliant EU Customer
  • Tax Calculation Failed
  • Currency incompatible with Gateway
  • Non Compliant Customer

But if there is some other for the cancellation of subscription, the subscription canceled event will not have any reason for the cancellation.

Configure Subscription Cancellation

To configure the default subscription cancellation settings of ChargeMonk go to: Settings > Configure ChargeMonk > Subscription Cancellation

The below given table elucidates various options for each setting available:

Setting Options Available
Term and date for the cancellation of a subscription Cancel immediately: Eliminates the subscription immediately.
Cancel at end of term: Eliminates at the end of the term and shifts the subscription status to non-renewing.
Cancel on a specific date: Eliminates after the scheduled date. The defined date and time of cancellation can be set by the user.
On the mid-term cancellation of the subscription, how do you want to manage credits for the unused period? Don't issue credits: The subscription will get canceled and no credits will be given for the unused period.
Issue prorated credits: The subscription will be canceled and prorated credits will be given for the unused period. (Not recommended for shippable subscriptions as ChargeMonk has time-based proration.)
Issue full credits: Give full credits for the whole term.
Once the subscription is canceled, comprise the cancellation date in the billing period? This option is available only when the ChargeMonk is running on the day-based billing mode. Once activated, the same date of canceling subscription will be the date of ending its term. Once inactivated, the term end date of subscription will be the day before its cancellation date.
In case existing refundable credits are available. Retain credits: There will be no action against the credits.
Initiate refund: Begins the refund of the credits.
In case there are existing unpaid invoices for the canceled subscription Retain as unpaid: There will be no action against the invoice.
Attempt Collection: In case auto-collection is activated, a charge is attempted on the available payment method. In case the payment fails, the invoice will be retained as the payment due.
Write Off: The amount due is written off.
In case there are existing unbilled charges for the canceled subscription Invoice Charges: In case auto-collection is activated, the unbilled charges will be invoiced and a charge is attempted on the available payment method. In case the payment fails, the invoice is marked as not paid.
Delete Charges: The unbilled charges will be deleted.
Application of refundable credits or excess payments, if any, to unpaid invoices. This option allows you to apply to the unpaid invoices, any refundable credits or excess payments that are available for the customer record.

Additionally, ChargeMonk helps you to add a condition or override the default settings. You can also perform these measures by clicking the vertical ellipsis placed next to each setting.

  • Allow overriding through ChargeMonk interface: By activating the Allow overriding via ChargeMonk interface for a setting, users will be allowed to override the default option.
  • Add a condition to this rule: For the subscription cancellation, different behavior can be set based on of whether the cancellation is invoked through the web interface, API, by the customer through the Self-serve Portal or because of the scheduled cancellations.

Note

  • Credit card disputes can be avoided by (chargebacks), having a clear and precise cancellation/refund policy with your customers.

For Future Subscriptions

  • The cancellation of the subscription can take place immediately only. Once the subscription gets activated then there is no option to set it to cancel at end of the term.
  • In case you want to cancel the subscription at the end of the first term, you can do that with the help of the Change Subscription operation and a number of billing cycles can be set to 1.

From Scheduled Cancellation to Active

Once the number of billing cycles raises for a subscription or when the subscription is changed to a plan having a different term period, it will move from non-renewing to active state.

Example

In case, for a monthly the subscription the number of billing cycles scheduled for cancellation is set to any non-zero number, or if the plan is changed to a one year with the help of the Change Subscription operation, the subscription will become active.

A way to convert their subscriptions to active from non-renewing by extending their subscription can be offered to the customer.

Postpone Subscription Cancellation

The cancellation date/time for a subscription that is scheduled to be canceled on the next renewal can be changed through the web interface (with the help of the option Change Cancel Date placed on the right side panel of the detail page of subscription) or with the help of the Change term end API.

In case the date of cancellation is postponed, the subscription will still be non-renewing, until the date/time of cancellation. An option to increase the prorated charges for the extended period is made available while executing this action.

Reactivating Canceled Subscription

To re-activate the billing for a canceled subscription, you have to ‘reactivate' your subscription. Learn more.

FAQ

Why is it not possible to set the time when I change the cancellation date?

This is because your ChargeMonk site must be in the day-based billing mode.
In this mode, it is mentioned that at the end of the day, the cancellation will take place.