Explained: Prepaid Subscriptions

What are Prepaid Subscriptions?

As the title suggests Prepaid Subscriptions are subscription orders where your customer agrees to pay the recurring fees in advance and upfront. It is a win-win-situation for you and your customer, as this makes it easier to plan your cash flow, and many vendors offer their customers a certain discount for their upfront payment and commitment to the subscription service.

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How to set up Prepaid Subscriptions?

Prepaid subscriptions need to be set up as variants in your shop system. You can define in your variants set up whether the payment should be charged monthly or in one payment. 

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See example image below:

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Extension/renewal of Prepaid Subscriptions

With upfront payments, you likely want to extend the subscription duration after the upfront paid months are over to make your customer stick to you. Typically circuly only receives the total payment amounts from your shop system which becomes a problem when your subscription should extend monthly after the prepaid duration. Therefore, we have introduced the extension price field in our product list.

To set up the extension of Prepaid Subscriptions > Go to Products > Variants > Select all variants you would like to edit > Click on the Edit extension price button.

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Now enter the extension prices in the given input field.

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This price will then be used after the prepaid duration is over and when the auto renew becomes active. Learn more about the extension price function.

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Prepaid Subscriptions in the circuly Operations Backend

• The variant title should show whether it is upfront or monthly payment.
• There will be no recurring payments scheduled up until the first auto renews becomes active
• They will also see the entered extension price in the subscription creation screen again, but can only change it in the product section (direct link to product list by clicking on edit variant)