To accommodate our biz partners, should there be a situation when a subscriber fails to successfully compete a payment for any billing cycle, SUBPLACE will automatically extend the subscription period.
the unpaid cycle will be carried forward for the next three months. During these three months, the system will attempt to collect the payment for the unpaid cycle. However, if the payment is still unsuccessful by the end of the third month, the subscription will be automatically terminated.
Let's take an example to illustrate this change:
Illustration 1: Constant Monthly Amount
Assume a customer subscribes to a plan with a subscription period of 6 months and a recurring fee of RM100 every month. The customer pays for the first month, but the payment for the second month fails.
Here's how the process would look:
The system will attempt to charge for Cycle 2 each month for the next three months. If the payment is not successfully collected by the end of the third month (Month 4), the system will automatically terminate the subscription.
Illustration 2: Variable Monthly Amount
Now, assume a customer subscribes to a plan with a subscription period of 6 months. The recurring price for each month varies: RM100 for the first two months, RM95 for the next two months, and RM90 for the last two months. The customer pays for the first month, but fails to make the payment for the second month.
Here's how the process would look:
In this case too, the system will attempt to collect payment for Cycle 2 over the next three months. If the payment for Cycle 2 is not successfully collected by the end of the third month (Month 4), the system will automatically terminate the subscription.
The cycle number remains the same throughout the extension period, emphasizing that the system is attempting to collect payment for the same billing cycle. This is a critical component of the billing, ensuring the subscription's continuity while seeking the due payment.