Subscription cycle and charge

1. Purchase:

• Subscription is charged for the whole cycle (e.g. one month or one year)
• A cycle must be at least one month.
• A cycle can be customized (e.g. two or six months).

Example: Monthly subscription purchased on 16 Nov 2020, subscription price = $50

• The subscription is active from 16 Nov to 15 Dec 2020, both dates inclusive. 
• Subscription charge = full one month = $50

2. Change to the subscription that does NOT affect the expiry date:

Action	Description	Charge
Purchase add-on	Increase the quantity of the add-on SKUs to an existing subscription	Pro-rated the add-on price/cost to the expiry date.
Remove add-on	Decrease the quantity of the add-on SKUs to an existing subscription	No
Upgrade	Change the primary SKU to a higher value one.	Pro-rated the difference (offset) to the expiry date.
Downgrade	Change the primary SKU to a lower value one.	No

Example: Today is 20 Nov 2020 and the expiry date is 15 Dec 2020.

• Purchase a number, price = $10 → charge = $7 ($10/30 days * 21 days of usage)
• Remove a number that has been purchased at $7 → charge = refund = 0
• Upgrade the plan from $50 to $90 → charge = $28 (($90-$50) /30 days * 21 days of usage)
• Downgrade the plan from $50 to $10

3. Change to the subscription that extends the expiry date (refund is not applicable in all cases):

Action	Description	Date to trigger	New expiry date
Extend by cycles	Subscription is extended manually by cycles.	Any time before expiry date	Same date, different month
Extend to specific date	Subscription is extended manually to a specific date.	Any time before expiry date	A date chosen by the user. At least one month.
Renew with alignment	Subscription renews auto by the system and aligns. Alignment occurs at the first renewal.	7 or 8 (legacy) before the expiry date	The end of next month
Renew without alignment (rolling)	Subscription renews auto by the system and remains the expiry date through the months.	7 or 8 (legacy) before the expiry date	Same date, different month

Example: monthly subscription fee = $50, expiry date 15 Dec 2020. 

• Extend 3 months: 
  • Date of action 20 Nov 2020
  • New expiry date: 15 Mar 2021. 
  • Fee = $150 = $50*3 month
    
• Extend to 10 Feb 2020: 
  • Date of action 20 Nov 2020
  • New expiry date: 10 Feb 2020. 
  • Fee = $93.55 = $50*1 + $43.55 = 1 month (16 Dec – 15 Jan) + 27 days (from 16 Jan – 10 Feb)
    
• First renewal (with alignment): 
  • Renewal date: 08 Dec. 
  • New expiry date: 31 Jan 2021 (end date inclusive). 
  • Fee = 1 month (16 Dec – 15 Jan) + 16 days (from 16 Jan – 31 Jan). This first renewal fee will be Monthly subscription fee x (1+ 16/31).
    
• Second renewal onwards: 
  • Renewal date: 24th or 25th of the month.
  • Fee = $50 = 1 month

	First buy	First renewal	Second renewal
Valid period	16 Nov – 15 Dec 2020	16 Dec – 31 Jan	1 Feb – 28 Feb
Fee	1 month	1 month + 16 days	1 month

• Rolling renewal
  • Renewal date: 08th every month
  • New expiry date: 15th every month
  • Fee = 1 month
    

4. Cease a subscription: Unsubscribe and Terminate:

	Unsubscribe	Terminate
Description	Stop renewing the subscription but still want to use it.	Stop using the subscription/service right away.
When to do	Before the renewal date	Any time by user. 28 days after the subscription expires, by the system.
Undo ability	Yes, 7 days before the expiry date	No
Usable period	Until expiry date	No more
Charge	No	No
Refund	Not applied	Applied with conditions (see 5. Refund)

5. Refund:

When an active subscription is terminated, the user will be refunded automatically with the amount equals to:

• Full amount that the user has paid, if the termination date is within 14 days of activation
• The rest of the duration of the subscription, in months, if the termination date is after 14 days of activation.
• Activation date is the date that the subscription starts a new cycle (NOT the deduction/transaction date)

Example: 

• Monthly subscription fee = $50, purchase on 15 Nov 2020, expiry date 14 Dec 2020 → activation date = 15 Nov 2020
  • Terminate on 26 Nov 2020 (within 14 days since 15 Nov) 
    • Refund = $50
  • Terminate on 10 Dec 2020 (more than 14 days since 15 Nov)
    • Refund = $0
      
• Monthly subscription fee = $50, expiry date 15 Dec 2020. On 06 Dec 2020, extend 3 months to 14 Mar 2021. Extension fee = $150 = $50*3 month → activation date = 16 Dec 2020.
  • Terminate on 20 Dec 2020
    • Refund = $150 (full)
  • Terminate on 10 Jan 2021
    • Refund = $100 (2 months: 15 Jan – 14 Feb and 15 Feb – 14 Mar)
  • Terminate on 20 Jan 2021
    • Refund = $50 (1 month 15 Feb – 14 Mar)
  • Terminate on 20 Feb 2021
    • Refund = $0 (no full month is found)
  • Terminate on 02 Mar 2021
    • Refund = $0 (no full month is found)

6. Status of a subscription:

• Active subscription: You can use it normally.
• Expired and terminated subscription:

	Expired	Terminated
Reason	Subscription is on auto renewal but failed to both renew and recover. Subscription is NOT on auto renewal.	Auto becomes terminated 28 days after a subscription expires. Customer requests to terminate.
Usage period	No more	No more
Ability to reactivate	Yes, within 28 days.	No
Configuration storage	Yes. 28 days after the expiry date. Can recover if the subscription is activated within this period.	No

Timeline of a subscription:

Example: Subscription lifecycle:

Status (period charge). E.g: Active (10 Jan – 09 Feb)