Commerce Glossary

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What is Subscription Billing?

sub - scrip - tion bill - ing
noun
Refers to a technological suite or platform that handles recurring billing and collections processes, communication, and customer management for subscription-based products.

This charging method allows merchants to automatically bill their customers, for specific goods or services, for a specific period of time, for a determined contractual period (or indefinitely), for open-based contracts. This includes a monthly/ yearly/ quarterly/ etc. invoice for subscribing to specific services, whether access to digital goods or services, or even physical deliveries (subscription boxes). Users are charged on a regular basis but should have the option to pause or cancel their subscription when they no longer wish to continue using the service.

Businesses selling recurring contracts rely heavily on their subscription billing platform, as the capabilities received from these providers can make the difference between a successful company and one that struggles. Any subscription platform worth employing by your business must have, at minimum, a core feature set, including effective subscription tracking, automatic invoicing, simple refund capabilities, and the option to serve customers globally. Subscription platforms can come on a stand-alone basis as a point solution, requiring further integration with commerce and payments systems; or as part of all-in-one monetization platforms, where all capabilities needed for selling subscriptions are pre-integrated and readily available.

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