eStore – Using Invoicing for Subscriptions

[mpninc]

We are currently using PayPal to process our monthly subscriptions. However, we have had requests from multiple customers to actually use some sort of invoicing for our subscriptions. What they want is for us to invoice them and to then pay the subscription that way. It seems problematic but I thought that I would run this through the forum to see if anyone has had any success with this type of billing. Thanks in advance.

[wzp]

It’s important for us to begin the discussion with some definitions of what we’re talking about.

• The business definition of “to invoice,” is to first present a customer with a DEMAND for payment, BEFORE rendering a service or delivering goods.

   

• The business definition of a “subscription,” is to enter into a CONTRACT with a customer, in which goods or services are PERIODICALLY delivered according to an agreed-to PAYMENT PLAN.

   

In eCommerce, PayPal (or anyone else) is a third party “payment processor” to the subscription contract. Their job is to collect the money according to the terms of the subscription’s payment plan; usually by making an AUTOMATIC DRAW against their payment method.

• Whenever they successfully collect a payment; a payment IPN is sent to your site.

   

• If they are unable to collect a payment, because either the subscription was cancelled or “N” (usually 3) unsuccessful attempts at payment collection were made; a cancellation IPN is sent to your site.

  • The collection terms are between the payment processor and the customer; you have no say-so.

 

What I “think” your customer(s) want, is the ability to NOT have the payment processor automatically draw against their payment method; so that they can have “more time.” PayPal subscriptions (or even recurring payments) do not allow for this.

[mpninc]

Thank you very much for the great explanation! I appreciate you taking the time to lay it all out in a way that is easily understandable.

[wzp]

You never indicated what the subscriptions were for. By any chance, are they for eMember memberships? As an alternative; the customers can purchase fixed term memberships of say, 60 days. Towards the end of the 60 days, eMember can automatically send them reminders that tell them to renew their 60 day memberships at a particular price. This is a form of invoice; because you are telling them to buy another 60 day membership; before their current term expires. If they don’t buy another 60 day membership in time, eMember suspends their membership.

https://www.tipsandtricks-hq.com/wordpress-membership/setting-up-before-and-after-member-account-expiry-notification-email-510

[Author]

Posts