Introduction

Subscriptions should be used when billing is done periodically on a recurring basis, such as charging customers monthly for software usage, monthly rent payments, and similar scenarios. In addition to monthly billing, other intervals like quarterly or semiannual billing can also be selected.

Difference Between Subscriptions and Installment Payments

Subscriptions differ from installment payments: when generating an installment payment plan, all installments are created at once. In the case of a subscription, a charge is generated each month (or according to the chosen interval) and sent to the customer. If the payment method for the subscription is a credit card, the customer's card will be automatically charged on the billing due date.

Subscriptions and installment payments also differ when paid with a credit card: for installment payments, the total purchase amount is charged to the customer's card at once and then split into installments as specified. For subscriptions, a new transaction is processed monthly (or according to the selected interval) on the customer's card until the subscription is canceled or the card being used becomes invalid (due to expiration, cancellation, etc.).