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Subscription Features

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API Integration

Third Party Integrations

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 a 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.

Refund During Cancellation 

If you cancel a subscription via the API or the web interface, Chargebee offers the following methods to provide a refund, depending on whether the invoice is paid or unpaid.

If the invoice is paid:

If you are cancelling a subscription that has been paid for already, Chargebee will prompt you with the following refund options upon cancellation:

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  • No credits: With this option, refund will not be provided to the Customer
  • Full Refund: With this option, Chargebee will provide a complete refund. A refundable credit note will be created for the full amount . Read more about Refundable Credits.
  • Prorated Refund: With this option, Chargebee will automatically prorate the charges on the current invoice and create a refundable credit note for the unused period with the amount that is due to be refunded.

If the invoice is due:

If you are cancelling a subscription that hasn't been paid for, Chargebee will prompt you with the following refund options upon cancellation:

  1. Offer full credits: With this option, Chargebee will create an adjustment credit note for the full amount for the term and apply it to the invoice.
  2. Offer credits for the unused period: With this option, Chargebee will automatically prorate the charges on the current invoice and create an adjustment credit note for the unused period with amount that is adjusted against the charges due. Any charges for the used period that are due for collection have to be collected manually
    In case your customer has already paid for a part of the unused period (partial payment), Chargebee will account for the amount and create two credit notes:
    • An adjustment credit note for the charges due against the unused period.
    • A refundable credit note for the payment made against the unused period.
  3. No credits: With this option, a credit note will not be created.
Note

Any charges due against the current term invoice must be collected manually.

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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