Debit date

All you need to know to charge your subscriptions on a specific day of the month.

The debit date feature is a price property that allows you to configure a day of the month (between 1 and 28) on which the payments of all subscriptions associated with a price – with an established debit date – will be executed.

This feature is only available for recurring prices with a monthly payment frequency.

There are 3 use cases:

1. Total charge when generating the subscription

It means that a charge is generated when the user creates his subscription via the payment link, and later on the day chosen.

Example:

  • Subscription price: $100 USD
  • Subscription creation date via payment link: October 22
  • Established debit date: 28 of each month

In this example, a debit for $100 USD will be generated on October 22 and exactly the same will happen on October 28, that means a new debit for $100 USD just 6 days later. From the second charge onwards, payments will be generated on the 28th of each month.

2. No initial charge when generating the subscription

It means that NO charge will be generated when the user creates their subscription via the payment link, so the first payment will be made on the established debit date.

Example:

  • Subscription price: $100 USD
  • Subscription creation date via payment link: October 22
  • Established debit date: 28 of each month

In this case, on October 22, NO charges would be generated. Your first debit will be made on October 28. The successive payments will be charged on the 28th of each month.

3. Proportional charge when generating the subscription

It means making a proportional charge based on the days between the day the subscription was created and the chosen debit day.

There are 3 proportional charge scenarios:

A) If the subscription creation date is equal to the debit day: the total price value will be charged.

B) If the subscription creation date is prior to the chosen debit day.

Example:

  • Subscription price: $100 USD
  • Subscription creation date via payment link: October 22
  • Established debit date: 28 of each month

How to calculate the amount to be charged?

In this case, we must first calculate the cost of the service per day, using the following formula:

Price amount / Days of october = service price per day

  • $100 USD / 31 days = $3.2 USD/day

The second step is to calculate the number of days to be charged, using the formula:

Debit day - day the subscription was created = days to be charged

  • 28 - 22 = 6 days

Finally, we must calculate the amount to be charged with the formula:

  • $3.2 USD/day * 6 days = $19.2 USD

The platform will make a debit of $19.2 USD when generating the subscription and $100 USD will be charged on October 28. The successive payments ($100 USD) will be charged every 28.

C) If the subscription creation date is after the debit day

Example:

  • Subscription price: $100 USD
  • Subscription creation date via payment link: October 20
  • Established debit date: 15 of each month

How to calculate the amount to be charged?

We must calculate the cost of service per day for each month (in this case October and November) with the following formulas:

Price amount / 31 days of october = service price per day in October.

  • $100 USD / 31 days = $3.2 USD/day in october

The second step is to calculate the number of days that should be charged from each month.

  • October: 31 days - 20 days = 11 days to charge in october
  • November: 15 days (the chosen debit date).

Then we calculate how much should be charged for each month. The sum of these amounts will be the proportional amount to charge.

Service price per day in October * number of days to be charged from October = Amount to be charged in October

  • $3.2 USD * 11 days of October = $35.2 USD amount to be charged in October

Service price per day in November * number of days to be charged from November = Amount to be charged in November

  • 3,3 USD * 15 days of november = $49.5 USD amount to be charged in November

Proportional amount to be charged = Amount to be charged for October + Amount to be charged for November.

  • $35.2 USD + 49.5 USD = $84.7 USD to be charged proportionally at the time of subscription.