What happens when I reactivate a canceled customer?

  1. Overview
  2. The Short Cancel - Reactivation occur prior to the next scheduled invoice date
    1. Example A Short Cancel
    2. Example B Short Cancel with Free Trial
    3. Example C Short Cancel Before Free Trial Ends
    4. Example D Short Cancel Before Free Trial Ends Override
    5. Example E Short Cancel When Free Trial Ends
    6. Example F Short Cancel When Free Trial Ends Override
  3. The Long Cancel - Reactivation occurs after the next scheduled invoice date
    1. Example A Long Cancel
    2. Example B Long Cancel Bills on Sign-Up
    3. Example C Long Cancel with Outstanding Invoice Bills on Sign-Up
    4. Example D Long Cancel with Free Trial
    5. Example E Long Cancel with Free Trial Override Bill Date

1. Overview

There are two general types reactivation events: Short and Long. The difference has everything to do with how long the account remained canceled before the reactivation occurs.

The behavior of a reactivation also depends on the configuration of the pricing plan in the case of a "long" cancel. Upon reactivation of a long cancel, the subscribed plan "new customer" configuration applies.

2. The Short Cancel

This is fairly straightforward. If the customer's account has been canceled for a short period of time (less than one billing cycle), when reactivated, the outstanding invoice (if there is one) is charged and the existing pending invoice remains and is billable on the existing future bill date. If the transaction that is executed to settle the outstanding invoice is declined, the reactivation will fail and the customer will remain canceled. If an outstanding invoice does not exist (i.e., the account was in good standing when canceled), the account is simply reactivated and the customer will be billed again on the existing next bill date

2.1 Example A Short Cancel

Subscribed plan is billed monthly at $45.

       (1)          (2)    (3)        (4)
       $45                            $45
... ----|------------x------x----------|---- ...
       May          May    May        Jun
        8           20     25          8
  1. Jill is billed $45
  2. Jill's subscription is canceled
  3. Jill reactivates her subscription
  4. Jill is billed $45

If Jill's subscription is canceled for non-payment of the bill in step (1), then in step (3) she will be charged for the May 8th invoice before the reactivation is successful.

2.2 Example B Short Cancel with Free Trial

Subscribed plan is configured to bill 15 days after sign-up. The subscription is canceled by the customer immediately after sign-up and then reactivated immediately after cancelation.

     (1)      (2)     (3)      (4)
                               $45
... ---|-------x-------|--------|--- ...
       May    May      May      May
       8       9       10       23
  1. Jack signs-up for a subscription with a 15 day free trial
  2. Jack cancels the subscription before trial ends
  3. Jack reactivates his subscription before the trial date
  4. 15 days after Jack initially subscribed he's billed for the subscription

The trial period continues as if Jack never canceled his subscription.

2.3 Example C Short Cancel Before Free Trial Ends

Subscribed plan is configured to bill 15 days after sign-up. The subscription is canceled by the customer 10 days after sign-up, then reactivated 10 days later after the initial trial end date has passed.

     (1)    (2)     (3)       (4)
                              $45
...---|------x-------x---------|---...
    May     May     May      June
    10      20       30        14
  1. Jack signs up for a subscription with 15 day free trial
  2. Jack cancels his subscription 10 days later, before the free trial has ended
  3. Jack reactivates the subscription 10 days after canceling and free trial re-starts on reactivation
  4. Jack is billed for the subscription 15 days after reactivation

Jack starts another free trial period on reactivation and is billed after the new trial period ends.

2.4 Example D Short Cancel Before Free Trial Ends Override

Subscribed plan is configured to bill 15 days after sign-up. The subscription is canceled by the customer 10 days after sign-up, then reactivated 10 days later after the initial trial end date has passed. The merchant does not want the customer to receive another free trial period, so overrides the settings to bill immediately on reactivation.

     (1)    (2)    (3)
                   $45
...---|------x------|---...
     May    May     May
     10      20     30
  1. Jane signs up for a subscription with 15 day free trial
  2. Jane cancels 10 days later, before the free trial period has ended
  3. Jane reactivates the subscription 10 days after cancelation and the parameter changeBillDate=now is specified

Jane is charged immediately on reactivation and does not receive another free trial.

2.5 Example E Short Cancel When Free Trial Ends

Customer signs-up for a monthly subscription with a 15 day free trial that does not require a payment method on sign-up. The customer does not enter a payment method before the first bill is due and is auto-canceled. The customer then reactivates their subscription 10 days later which is before the pre-existing next bill date.

     (1)   (2)   (3)     (4)
                 $45     $45
...---|-----x-----|-------|---...
     May   May   May     June
      1    15    25       15
  1. Jack signs-up for a subscription that has a 15 day free trial and doesn't require a payment method on sign-up
  2. First bill becomes due 15 days after sign-up and Jack hasn't given a payment method, so the subscription is auto-canceled
    *The outstanding invoice remains.
  3. 10 days later Jack reactivates the subscription and is billed for the outstanding invoice on sign-up
  4. Pre-existing next bill date remains the same (like a normal short cancel and reactivate)

2.6 Example F Short Cancel When Free Trial Ends Override

Customer signs-up for a monthly subscription with a 15 day free trial that does not require a payment method on sign-up. The customer does not enter a payment method before the first bill is due and is auto-canceled. The customer then reactivates their subscription 10 days later which is before the pre-existing next bill date, but the merchant would like to override the automatic settings to change the next bill date.

     (1)   (2)   (3)   (4)
                 $45   $45
...---|-----x-----|-----|---...
     May   May   May   June
      1    15     25    30
  1. Jack signs-up for a subscription that has a 15 day free trial and doesn't require a payment method on sign-up
  2. First bill becomes due 15 days after sign-up and Jack hasn't given a payment method, so the subscription is autocanceled
    *Outstanding invoice remains.
  3. 10 days later Jack reactivates the subscription, he's billed for his outstanding invoice and the parameter changeBillDate=[2016-06-30] is specified
  4. Next bill occurs on June 30th

Jack is billed on sign-up for the outstanding invoice and the next bill date is set to be the date specified in the changeBillDate parameter (in this case June 30th, 2016).

3. The Long Cancel

If the customer's account has been canceled for more than one billing cycle, when reactivated, the outstanding invoice (if there is one) is billed. The subsequent action is similar to a new signup. Since the customer has not been active for more than one billing cycle, when they reactivate the subscription starts at the moment of reactivation. If the subscribed plan is configured to bill on signup, it is billed on reactivation and a new billing cycle is begun. If the initial bill is delayed on the subscribed plan, a new billing cycle is begun.

3.1 Example A Long Cancel

Subscribed plan is billed monthly at $45 and the plan is configured to bill one month after signup.

       (1)          (2)        (3)        (4)
       $45                                $45
... ----|------------x...    ...x----------|---- ...
       May          May        Jul        Aug
        8           20         14         14
  1. Jill is billed $45
  2. Jill's subscription is canceled
  3. Jill reactivates her subscription
  4. Jill is billed $45

If Jill's subscription is canceled for non-payment of the bill in step (1), then in step (3) she will be charged for the May 8th invoice before the reactivation is successful.

3.2 Example B Long Cancel Bills on Sign-Up

Subscribed plan is billed monthly at $45 and the plan is configured to bill on signup. The subscription is canceled while in good standing. This includes cancellations due to absent valid payment method (e.g., expired card).

       (1)          (2)        (3)        (4)
       $45                     $45        $45
... ----|------------x...    ...x----------|---- ...
       May          May        Jul        Aug
        8           20         14         14
  1. Jack is billed $45
  2. Jack's subscription is canceled
  3. Jack reactivates his subscription and is billed $45
  4. Jack is billed $45

3.3 Example C Long Cancel with Outstanding Invoice Bills on Sign-Up

Subscribed plan is billed monthly at $45 and the plan is configured to bill on signup. The subscription is canceled due to failure to pay an outstanding invoice.

       (1)          (2)    (3)        (4)        (5) 
       $45                          $45+45       $45
... ----|------------x------x...    ...x----------|---- ...
       May          Jun    Jun        Jul        Aug
        8            8     16         14         14
  1. Jane is billed $45
  2. Jane's payment is declined
  3. Jane's subscription is canceled after dunning completes
    *The invoice remains outstanding
  4. Jane updates her payment method and is successfully billed $45 for the outstanding invoice (due on Jun 8)
    *Jane is immediately billed $45 beginning the new invoice period.
  5. Jane is billed $45

3.4 Example D Long Cancel with Free Trial

Customer signs-up for a monthly subscription with a 15 day free trial that does not require a payment method on sign-up. The customer does not enter a payment method before the first bill is due and is auto-canceled. Customer reactivates their subscription 45 days later which is after the pre-existing next bill date.

     (1)     (2)              (3)    (4)    
                              $45    $45
...---|-------x-----...     ...|------|---...
     May     May              June  July
     1        15               29    29
  1. Jane signs-up for a monthly subscription with a 15 day free trial without a payment method
  2. Jane doesn't add a payment method before the first bill is due and is auto-canceled
    *The outstanding invoice remains.
  3. Jane reactivates the subscription after 45 days. The bill for the outstanding invoice is immediately transacted and a new invoice period begins (like a normal long cancel and reactivate)
  4. Jane's next bill is one month after reactivation

3.5 Example E Long Cancel with Free Trial Override Bill Date

Customer signs-up for a monthly subscription with a 15 day free trial that does not require a payment method on sign-up. The customer does not enter a payment method before the first bill is due and is auto-canceled. Customer reactivates their subscription 45 days later which is after the pre-existing next bill date. Merchant wants to override settings to change their next bill date.

     (1)       (2)              (3)     (4)
                                $45     $45 
...---|---------x-----...     ...|-------|---...
     May       May              July    Aug
      1        15                29      15
  1. Jane signs-up for a monthly subscription with a 15 day free trial without a payment method
  2. Jane doesn't add a payment method before the first bill is due and is auto-canceled
    *The outstanding invoice remains
  3. Jane reactivates the subscription after 45 days (after pre-existing next bill date). The outstanding invoice is billed and changeBillDate=[some future date] parameter is specified (in this case the future date is 2016-08-15) Her next bill date is changed to the future date specified instead of transacting on reactivation
  4. Jane is charged $45 for her subscription on her next bill date

Jane is billed on reactivation for the outstanding invoice and the next bill date is set to be the date specified in the changeBillDate parameter (in this case August 15th, 2016).

View Plans and Pricing   or   Get Started with CheddarGetter now →