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Subscription Cancellation 

Introduction 

When an active subscription moves 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 

Subscription cancellation can happen due to various reasons. If a subscription gets canceled for any of the below mentioned cases, the subscription_canceled event will notify you the reason for the cancellation.

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

If the subscription gets canceled due to any other reason, the subscription_canceled event will not hold the reason for cancellation.

Configure Subscription Cancellation 

You can configure Chargebee's default subscription cancellation settings by navigating to: Settings > Configure Chargebee > Subscription Cancellation

The below table explains the various options available for each setting.

Setting Options Available
When a subscription has to be canceled Cancel immediately: Cancels the subscription immediately.
Cancel at end of term: Waits till the end of the term and then cancels (changes the subscription status to non-renewing).
When a subscription is cancelled mid-term, how do you want to handle credits for the unused period? Don't issue credits: The subscription is canceled without giving any credits for the unused period.
Issue prorated credits: The subscription is canceled and prorated credits are given for the unused period. (Not advised for shippable subscriptions as proration in Chargebee is time-based.)
Issue full credits: Issues full credits for the entire term.
When subscription is canceled, include the cancellation date in the billing period? This setting is only available when Chargebee is running on day-based billing mode. When enabled, a subscription canceling on a particular date will end its term on the same date. When disabled, the subscription will end its term on the day before the cancellation date.
If there are existing refundable credits Retain credits: No action is taken against the credits.
Initiate refund: Initiates the refund of the credits.
If there are existing unpaid invoices for the canceled subscription Retain as unpaid: No action is taken against the invoice.
Attempt Collection: A charge is attempted on the available payment method if auto-collection is enabled. If the payment fails, the invoice is retained as payment due.
Write Off: The amount due is written off.
If there are existing unbilled charges for the canceled subscription Invoice Charges: The unbilled charges will be invoiced and a charge is attempted on the available payment method if auto-collection is enabled. If the payment fails, the invoice is marked not paid.
Delete Charges: The unbilled charges will be deleted.
Apply refundable credits/excess payments, if any, to unpaid invoices. This toggle allows you to apply to the unpaid invoices, any refundable credits/excess payments that are present for the customer record.

Chargebee also allows you to override the default settings or add a condition. You can perform these actions by clicking the vertical ellipsis available next to each setting.

  • Allow overriding via Chargebee interface: By enabling the Allow overriding via Chargebee interface for a setting, you can allow your users to override the default option.
  • Add condition to this rule: A different behavior can be set for subscription cancellations based on whether the cancellation is invoked via the web interface, API, by the customer through the Self-serve Portal or due to scheduled cancellations.
Note
  • To avoid credit card disputes (chargebacks), it is recommended to have a clear and precise cancellation/refund policy in place with your customers.

For Future Subscriptions 

  • The subscription can be canceled only immediately. There is no option to set it to cancel at end of term after the subscription gets activated.
  • If you want to cancel it at the end of the first term, you can use the Change Subscription operation and set the number of billing cycles to 1.

From Scheduled Cancellation to Active 

When the number of billing cycles increases for a subscription or when the subscription is changed 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.
Customers can be offered a way to turn their subscriptions to active from non-renewing by extending their subscription.

Postpone Subscription Cancellation 

The date/time 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/time. An option to raise prorated charges for the extended period is also made available while performing this action.

Reactivating Canceled Subscription 

To re-start the billing for a canceled subscription, you need to ‘reactivate' your subscription. Learn more.


FAQ 

Why can't I set the time when I change the cancellation date? 

Your Chargebee site must be in day-based billing mode.
In this mode, it is implied that the cancellation happens at the end of the day.

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