CODEWITHSUNDEEP
stripe-paymentspayment
austin809
austin809

Reputation: 359

Prorating/refunding the cost of a previous stripe plan when creating a new plan and subscribing user to it

I basically want to know whether Stripe is automaticall refunding customers a prorated amount.

My process for updating a customer to a new plan:

  1. Delete the old plan.
  2. Create the new plan.
  3. Create the new subscription.
  4. Update user to new subscription.

Upvotes: 1

Views: 1196

Answers (1)

Ywain
Ywain

Reputation: 17503

If you create a new subscription then cancel the old one, the customer will be billed for the new subscription but will not gain any credit or refund for the unused time on the old subscription.

If you update the existing subscription to switch from the old plan to the new one, then by default Stripe will compute the proration (you can disable this by setting prorate to false in the subscription update request).

If the proration ends in favor of the customer, they will be granted credit in the form of a negative account balance. Customers' account balances are applied to future invoices before trying to actually charge the customer. Stripe will not partially or totally refund any past charges.

You can read more about subscription updates and proration in this paragraph of the subscription integration guide.

Upvotes: 1

Related Questions