Subscription price increases

[mpninc]

We use the PayPal interface to process monthly subscriptions. We need to increase the price across the board. If I change the price in the product description, is that enough to increase the price for those with a current subscription?

[wzp]

Does your site’s Terms & Conditions include a price increase clause, similar to what Netflix or Amazon Prime has?

When a subscription is processed through PayPal or any other payment processor; a binding “payment contract” is created between the subscriber and the payment processor. These contracts cannot be modified by you, and the payment processor is legally obligated to stick to it.

• If the subscription has an expiry, the solution is to force the subscriber to renew at the higher rate.
   
• If the subscription is “into perpetuity,” without an expiry AND you answered “NO” to the first question; your options are legally limited, depending on the laws in your jurisdiction. PayPal will not allow you to “modify” an existing payment contract. Assuming that you have the legal authority, you have to cancel any existing subscriptions and ask them to purchase new (hopefully renewable) subscriptions.
   

• This reply was modified 4 years ago by wzp.
• This reply was modified 4 years ago by wzp.

[admin]

PayPal won’t let you just change the existing subscription prices since the users didn’t agree to that. Otherwise the customers will say that it is a fraud charge since they didn’t agree to this different price.

What you need to do is, create NEW products with the new pricing and put them on your product page so new customers will start to signup using the new pricing and agree to this new pricing. Then you can decide to let the existing users stay on the current pricing until they cancel OR you can contact them and tell them to sign up using the new pricing.

[Author]

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