Billing cycles

DOCSCurrent

Last updated: Sept 23rd, 6:58pm

When you create a plan, you set the regular period billing cycle duration. A plan’s billing cycle defines the recurring frequency with which the subscriber is charged. For example, a plan with a weekly billing cycle charges the subscriber on a recurring frequency of one week.

You can choose from the following billing cycles:

  • Day
  • Week
  • Month
  • Year
  • Custom: customize the billing cycle for more flexible options like two weeks or three months.

Finite and infinite

Billing cycles can continue for a specified period of time, a finite plan, or until the user cancels the subscription, an infinite plan.

  • Finite plan - A plan with a fixed number of billing cycles. Create a finite plan if you want to associate a pre-defined number of cycles to the plan. Once a buyer subscribes to a finite plan, the subscription remains active for the specified number of billing cycles. You create a finite plan by specifying the total_cycles of billing cycles when you create the plan.

    Example: An online tutorial course priced at $10 per month and scheduled to last for five monthly cycles. The subscriber is charged $10 for five monthly cycles with the subscription ending after the fifth cycle.

  • Infinite plan - A plan without a fixed number of cycles. Create an infinite plan if you don’t want to associate a pre-defined number of cycles to the plan. Once a buyer subscribes to an infinite plan, the subscription remains active until cancelation. You create an infinite plan by specifying the total_cycles of billing cycles as 0 when you create the plan.

    Example: A plan for video streaming service priced at $20 per month. The subscriber is charged $20 per month until they cancel the subscription.

Example: finite plan

This example sets a finite plan with the following characteristics:

  • Five cycles
  • Each billing cycle is one month

    1curl -v –X POST https://api-m.sandbox.paypal.com/v1/billing/plans /
    2-H "PayPal-Auth-Assertion: AUTH-ASSERTION" /
    3-H "Content-Type: application/json"  /
    4-H "Authorization: Bearer ACCESS-TOKEN"  /
    5-d '{
    6    "name": "Beginner Plan",
    7    "description": "Five month beginner course",
    8    "product_id": "PROD-5RN21878H3527870P",
    9    "billing_cycles": [
    10        {
    11            "frequency": {
    12                "interval_unit": "MONTH",
    13                "interval_count": 1
    14            },
    15            "tenure_type": "REGULAR",
    16            "sequence": 1,
    17            "total_cycles": 5,
    18            "pricing_scheme": {
    19                "fixed_price": {
    20                    "value": "10",
    21                    "currency_code": "USD"
    22                }
    23            }
    24        }
    25    ],
    26    "payment_preferences": {
    27        "auto_bill_outstanding": true,
    28        "payment_failure_threshold": 1
    29    }
    30 }'

    Example: infinite plan

    This example sets an infinite plan with the following characteristics:

    • Billing continues until the subscriber cancels. Create an infinite plan by specifying the total_cycles of billing cycles as 0.
    • Each billing cycle is one month
      1curl -v –X POST https://api-m.sandbox.paypal.com/v1/billing/plans /
      2-H "PayPal-Auth-Assertion: AUTH-ASSERTION" /
      3-H "Content-Type: application/json" /
      4-H "Authorization: Bearer ACCESS-TOKEN" /
      5-d '{
      6    "name": "Premium Video Plus",
      7    "description": "Premium plan with video download feature",
      8    "product_id": "PROD-5RN21878H3527870P",
      9    "billing_cycles": [
      10        {
      11            "frequency": {
      12                "interval_unit": "MONTH",
      13                "interval_count": 1
      14            },
      15            "tenure_type": "REGULAR",
      16            "sequence": 1,
      17            "total_cycles": 0,   
      18            "pricing_scheme": {
      19                "fixed_price": {
      20                    "value": "20",
      21                    "currency_code": "USD"
      22                }
      23            }
      24        }
      25    ],
      26    "payment_preferences": {
      27        "auto_bill_outstanding": true,
      28        "payment_failure_threshold": 1
      29    }
      30 }'

      See also

      • Create a plan - You set the billing cycle frequency and the length of the subscription when you create the plan.
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