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Cancellations 

Introduction 

When an active subscription is moved to an inactive state and further renewals do not take place, it is said to be canceled.

An active subscription can be canceled any time. There are five ways in which a subscription can be canceled:

Cancellation Reasons 

Subscriptions could be canceled for various reasons. If the subscription is canceled for below mentioned cases, you will find the reason  in subscription_canceled event that is triggered:

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

If the cancellation reason is not listed above, the subscription_canceled event will not hold the reason for cancellation.

Immediate or Scheduled (end of term) Cancellation 

When canceling a subscription, you can either choose to cancel the subscription immediately or schedule it to be canceled at the end of the current term (via API  or web interface). If the subscription is set to be canceled immediately, then the subscription will get terminated right away.

When an active subscription is set to be canceled at the end of the current term, the subscription will move into non-renewing state and the number of billing cycles will be set to zero. No invoice will be generated, unless one-time charges are collected at the time of cancellation. Learn more.

Note
  • Whenever a subscription is canceled, automatic refunds will not be made to customers, but you can refund them manually.
  • To avoid credit card disputes (chargebacks), it is recommended to have a clear and precise cancellation/refund policy in place.

Limitation

For subscriptions in Future state, the subscription can be canceled only immediately. There is no option to set it cancel at end of term after the subscription gets activated.

If you want to cancel a subscription scheduled to begin in Future, you can use the Change Subscription operation and set the number of billing cycles to 1 which in turn will cancel the subscription at the end of its first term.

Proration on Cancellation 

On cancellation, there are instances where there might be unused subscription period left in the customer's subscription.
With Chargebee, you can opt to

  • provide a full credit,
  • prorated credit or
  • no credit to your customer for the unused subscription period, upon cancellation.

The credit generated for the customer can be refunded. However, you can opt to retain that credit and add it on to another subscription if the customer has multiple subscriptions.

Note
  • This feature is only available via API .
  • If you use Chargebee's Web interface alone, contact support@chargebee.com  to set this up in your Chargebee Site.

There are a few things to be taken into account as far as the refund on cancellation is concerned:

  • Unbilled Charges: The unbilled charges linked to the canceled subscription can be invoiced or deleted.
  • Payment Due Invoices: After determining the credits and excess payments, you can either write off or collect the charges that are due for the subscription. The available payment method will be charged for the payments that are due from the past invoices.
  • Auto-Collection: If Auto-Collection is enabled for the customer, an attempt will be made with the payment method available without further attempts to retry. Else, the invoice will be closed as Unpaid.

From Scheduled Cancellation to Active 

When the number of billing cycles is increased for a subscription or when the subscription is switched to a plan that has a different term period, it will switch from non-renewing state to active state.

Example

If the number of billing cycles for a monthly subscription, scheduled for cancellation (number of billing cycles set to 0) is set to any non zero number, or if the plan is changed to a yearly one using the Change Subscription operation, the subscription will become active.

Postpone Subscription Cancellation 

The date of cancellation for a subscription which is scheduled to be canceled upon the next renewal can be changed via web interface (using the option Change Cancel Date available on the right side panel of the subscription details page) or using the Change term end API. 

If the cancellation date is postponed, the subscription will still continue to be in the non-renewing state, until the cancellation date. Since, just the cancellation date changes and not the status of the subscription, payment is not collected for the intermediate period.

Note
  • When the subscription gets canceled, there will not be any future charges. However, if any charges were added to be collected at the end of the current term for a non-renewing subscription, Chargebee will attempt to collect them when the subscription gets canceled.
  • The subscription will get canceled irrespective of whether the charges are collected or not.
  • If Chargebee is not able to collect the pending charges from the customer due to any card issues, collecting the payments will have to be handled at your end.

Reactivate Canceled Subscription 

A subscription goes into canceled state under specific circumstances. To re-start the billing for a canceled subscription, you need to ‘reactivate' your subscription. Learn more.

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