Update Subscriptions Immediately🔗
When you update a Subscription immediately, you may have to perform the following:
- Charge the customer an extra amount
- Refund an amount to the customer
If the remaining amount for the original Subscription is the same as the amount to be charged for the updated Subscription, no charge or refund needs to be done.
Handy Tips
- If you are updating a Subscription (amount in dollars), ensure that the prorated amount difference between the existing and new plans is at least 50 currency subunits, that is, $0.5. You will get an error if the amount difference between the two plans is less than $0.5.
- This is valid only when you update a Subscription immediately.
Charge a Customer Extra🔗
When upgrading a plan or increasing the number of users, you may have to charge a customer an extra amount. In such scenarios, Razorpay creates an invoice and charges the customer the difference amount.
If the charge is successful, the invoice is sent to the customer only if Razorpay handles the customer's notifications.
You will be notified via the subscription.updated webhook.
If the charge fails, the Subscription is not updated.
Refund Money to a Customer🔗
When downgrading a plan or reducing the number of users, you might have to give the customer a refund. In such scenarios, Razorpay refunds the amount to the customer.
You will be notified about this via the subscription.updated webhook.
Credit Note🔗
A refund to a customer is done using a Credit Note. Credit notes are similar to add-ons and help you in reconciliation.
- Credit notes are not created against invoices. They are created against the total value of payments made by the customer. This means that only one credit note is created even if refunds have to be made against multiple invoices.
- You can view credit notes on the Dashboard against the respective Subscription.
- The credit notes are refunded automatically.
A credit note can have two states:
created: The initial state of a credit note. A credit note stays in this state until a full refund is made to the customer.refunded: The final state of a refund. A credit note moves to this state once the refund is successfully processed.
Example Scenario - Same Billing Frequency🔗
In the below examples, the Subscription is updated immediately, and there is no change in its billing cycle.
Example 1🔗
In the below example, we reduce the plan amount but increase the quantity. This change is done on the 1st day the Subscription becomes active. The updates take effect immediately.
Original Plan | Updated Plan | |
|---|---|---|
Plan amount | ₹300 | ₹150 |
Quantity | 1 | 2 |
Billing Frequency | Monthly | Monthly |
Frequency at which the amount should be charged in days | 30 | 30 |
Plan amount per day | (Plan amount x Quantity)/Frequency at which the amount should be charged in days = ₹10 | (Plan amount x Quantity)/Frequency at which the amount should be charged in days = ₹10 |
Plan change day | 1 | |
Days to be charged | Plan change day - 1 = 0 days | Remaining days (original plan) = 30 |
Remaining days | Frequency at which the amount should be charged in days - Days to be charged = 30 | |
Amount to be charged | Plan amount per day x Days to be charged = ₹0 | Plan amount per day x Days to be charged = ₹300 |
Remaining amount | Plan amount per day x Remaining days = ₹300 | |
Amount to be charged/refunded | Amount to be charged (new plan) - Remaining Amount (original plan) = ₹0 |
In this example, you neither have to charge the customer an extra amount nor give them a refund.
Example 2🔗
In the below example, we reduce the plan amount but increase the quantity. This change is done on the 15th day after the Subscription becomes active. The updates take effect immediately.
Original Plan | Updated Plan | |
|---|---|---|
Plan amount | ₹300 | ₹150 |
Quantity | 1 | 2 |
Billing Frequency | Monthly | Monthly |
Frequency at which the amount should be charged in days | 30 | 30 |
Plan amount per day | (Plan amount x Quantity)/Frequency at which the amount should be charged in days = ₹10 | (Plan amount x Quantity)/Frequency at which the amount should be charged in days = ₹10 |
Plan change day | 15 | |
Days to be charged | Plan change day - 1 = 14 days | Remaining days (original plan) = 16 |
Remaining days | Frequency at which the amount should be charged in days - Days to be charged = 16 | |
Amount to be charged | Plan amount per day x Days to be charged = ₹140 | Plan amount per day x Days to be charged = ₹160 |
Remaining amount | Plan amount per day x Remaining days = ₹160 | |
Amount to be charged/refunded | Amount to be charged (new plan) - Remaining Amount (original plan) = ₹0 |
In this example, you neither have to charge the customer an extra amount nor give them a refund.
Example 3🔗
In the below example, we reduce the plan amount and the quantity. This change is done on the 6th day after the Subscription becomes active. The updates take effect immediately.
Original Plan | Updated Plan | |
|---|---|---|
Plan amount | ₹1000 | ₹400 |
Quantity | 2 | 1 |
BillingFrequency | Daily | Daily |
Frequency at which the amount should be charged in days | 8 | 8 |
Plan amount per day | (Plan amount x Quantity)/Frequency at which the amount should be charged in days = ₹250 | (Plan amount x Quantity)/Frequency at which the amount should be charged in days = ₹50 |
Plan change day | 6 | |
Days to be charged | Plan change day -1 = 5 days | Remaining days (original plan) = 3 |
Remaining days | Frequency at which the amount should be charged in days - Days to be charged = 3 | |
Amount to be charged | Plan amount per day x Days to be charged = ₹1250 | Plan amount per day x Days to be charged = ₹150 |
Remaining amount | Plan amount per day x Remaining days = ₹750 | |
Amount to be charged/refunded | Amount to be charged (new plan) - Remaining Amount (original plan) = -₹600 (refund) |
In this example, you have to refund the customer ₹600.
Example Scenario - Different Billing Frequency🔗
In the below examples, the Subscription is updated immediately, and there is a change in the billing cycle.
Example 1🔗
In the below example, we are increasing the plan amount, keeping the quantity same and reducing the billing frequency. This change is done on the 1st day the Subscription becomes active. The updates take effect immediately.
Original Plan | Updated Plan | |
|---|---|---|
Plan amount | ₹350 | ₹350 |
Quantity | 1 | 1 |
Billing Frequency | Daily | Weekly |
Frequency at which the amount should be charged in days | 7 | 1 |
Plan amount per day | (Plan amount x Quantity)/Frequency at which the amount should be charged in days = ₹50 | |
Plan change day | 1 | |
Days to be charged | Plan change day -1 = 0 days | |
Remaining days | Frequency at which the amount should be charged in days - Days to be charged = 7 | |
Amount to be charged | Plan amount per day x Days to be charged = ₹0 | Plan amount x Quantity = ₹350 |
Remaining amount | Plan amount per day x Remaining days = ₹350 | |
Amount to be charged/refunded | Amount to be charged (new plan) - Remaining Amount (original plan) = ₹0 |
In this example, you neither have to charge the customer an extra amount nor give them a refund.
Example 2🔗
In the below example, we are increasing the plan amount, keeping the quantity same and reducing the billing frequency. This change is done on the 245th day the Subscription becomes active. The updates take effect immediately.
Watch Out!
If the plans have different billing cycles, the new plan is billed at the new interval, starting on the day of the change.
Original Plan | Updated Plan | |
|---|---|---|
Plan amount | ₹10950 | ₹21900 |
Quantity | 1 | 1 |
Billing Frequency | Yearly | Monthly |
Frequency at which the amount should be charged in days | 365 | 30 |
Plan amount per day | (Plan amount x Quantity)/Frequency at which the amount should be charged in days = ₹30 | |
Plan change day | 245 | |
Days to be charged | Plan change day -1 = 244 days | Remaining days (original plan) = 121 |
Remaining days | Frequency at which the amount should be charged in days - Days to be charged = 121 | |
Amount to be charged | Plan amount per day x Days to be charged = ₹7320 | Plan amount x Quantity = ₹21900 |
Remaining amount | Plan amount per day x Remaining days = ₹3630 | |
Amount to be charged/refunded | Amount to be charged (new plan) - Remaining Amount (original plan) = ₹18300 (charge) |
In this example, you have to charge the customer an extra amount of ₹18270.
Example 3🔗
In the below example, let us increase the plan amount, quantity and the billing frequency. This change is done on the 27th day the Subscription becomes active. The updates take effect immediately.
Watch Out!
If the plans have different billing cycles, the new plan is billed at the new interval, starting on the day of the change.
Original Plan | New Plan | |
|---|---|---|
Plan amount | ₹300 | ₹900 |
Quantity | 1 | 2 |
Billing Frequency | Monthly | Quarterly |
Frequency at which the amount should be charged in days | 30 | 90 |
Plan amount per day | (Plan amount x Quantity)/Frequency at which the amount should be charged in days = ₹10 | |
Plan change day | 27 | |
Days to be charged | Plan change day -1 = 26 days | |
Remaining days | Frequency at which the amount should be charged in days - Days to be charged = 4 | 90 days |
Amount to be charged | Plan amount per day x Days to be charged = ₹260 | Plan amount x Quantity = ₹1800 |
Remaining amount | Plan amount per day x Remaining days = ₹40 | |
Amount to be charged/refunded | Amount to be charged (new plan) - Remaining Amount (original plan) = ₹1760 (charge) |
In this example, you have to charge the customer an extra amount of ₹1760.