CODEWITHSUNDEEP
stripe-payments
angelokh
angelokh

Reputation: 9428

Stripe subscription with Annual contract with Monthly payment

Our product is charged per seat subscription, eg. $6/user/month. We want to give users a long-term commitment with an annual contract to reduce to $5/user/month. The total annual contract price is 5 x 12 = $60/user/year.

But we want to recount the number of seats used per month so we can charge accurately every month. So the annual contract has to be paid monthly.

For example, customer A is committed to an annual contract for 2 users.

The minimum annual contract only to limit the total price paid in the year is $5 x 2 x 12 = $120. But we want to be flexible month by month so they can increase or decrease seat month by month. Does Stripe support this kind of configuration?

Upvotes: 1

Views: 2118

Answers (1)

qichuan
qichuan

Reputation: 2011

The idea of annual subscription is that you collect the upfront fee ($60) and allow your customer to enjoy the service for one year, so that you don't need to worry about payment collection within the year because you've already collected it.

If you break the annual plan down to monthly payment ($5), there's no way to guarantee that your customer will always pay the monthly recurring payments for consecutive 12 months, and you are also introducing a competitor to the normal monthly per seat subscription ($6).

I'll suggest you to clearly separate the annual and monthly subscription, and don't mix them together. If you customer decide to add new items to the annual subscription, you can update the subscription with the new itme, and set prorate_behaviour to always_invoice so that Stripe will calculate the proration and generate an invoice for your customer to pay the price difference.

You can learn more about subscription upgrade in this doc.

Upvotes: 1

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