Understanding the difference between how often a customer receives a product and how often they are charged is essential for setting up successful subscription plans. While these two settings often align, separating them allows you to offer flexible options like prepaid gift subscriptions.
Why the Distinction Matters:
Flexibility: It allows you to offer "Pay Upfront" models where a user pays once but receives multiple shipments.
Transparency: Clear definitions prevent customer confusion regarding when their credit card will be charged versus when their package will arrive.
Revenue Management: Merchants can collect larger payments upfront (e.g., annually) while managing inventory on a shorter cycle (e.g., monthly).
Delivery Frequency
Delivery frequency refers to the physical schedule of when a product is shipped to the customer. This setting dictates your fulfillment workflow and determines how often the customer interacts with your physical product.
Example: A "Weekly" delivery frequency means the customer expects a package every seven days.
Billing Frequency
Billing frequency is the financial schedule that determines how often a customer’s payment method is automatically charged. This is the "recurring" aspect of the subscription from a banking perspective.
Example: A "Monthly" billing frequency means the customer sees one transaction on their bank statement every month.
Key Differences at a Glance
Feature | Delivery Frequency | Billing Frequency |
Focus | Physical Logistics & Fulfillment
| Financial Transactions & Revenue
|
Customer Impact | When they receive the goods
| When they pay for the goods
|
Typical Use Case | Ships every 2 weeks
| Charged every 1 month
|
IMPORTANT In a standard subscription, these frequencies usually match. However, for a Prepaid Subscription, you would set a frequent delivery (e.g., every month) but a long-term billing cycle (e.g., every 6 months).
Related Articles
Need Help?
If you face any issues during installation, reach out to our team at help@recurpay.com or start a live chat anytime for real-time assistance. We are available 24x7.