Integration Guide

Recurring Payments – Subscribe Buttons
Managing Subscriptions
3
126 September 2008 Website Payments Standard Integration Guide
Using Instant Payment Notification to Track Subscribe Transactions
PayPal lets your web server receive messages about Subscribe transactions and payment
activity on your account. If you activate Instant Payment Notification, PayPal sends messages
when:
z Payments are first made, with a status of completed or pending.
z Payments clear, fail, or are denied, if the initial status was pending.
z Subscriptions begin, end, or are canceled, if you use Subscriptions Password Management.
To learn more, see:
z “Instant Payment Notification – notify_url” on page 343
z “Generating Usernames and Passwords With Subscribe Buttons” on page 139
z Order Management Integration Guide
How Billing Cycles and Recurring Payments Work
PayPal attempts to collect recurring payments from subscribers on the day after the previous
billing cycle or trial period ends. Billing cycles can be daily, weekly, monthly or yearly,
depending on the terms of the original subscription.
How Subscriptions with Weekly Billing Cycles Work
For weekly billing cycles, recurring payments are collected on the same day of the week.
EXAMPLE 3.1 When Weekly Recurring Payments Are Due and Collected
The subscription terms are:
z $10 USD a week; the subscriber signs up on Tuesday, December 23.
The subscriber is billed as follows:
z Tuesday, December 23 = $10.00 USD
z Tuesday, December 30 = $10.00 USD
z Tuesday, January 6 = $10.00 USD
z and so on...
How Subscriptions with Monthly Billing Cycles Work
For monthly billing cycles, recurring payments are collected on the same day of the month. If
the initial recurring payment falls on the 31st, PayPal eventually adjusts the billing cycle to the
1st of the month. If the initial recurring payment falls on the 29th or 30th, PayPal adjusts the
billing cycle to the 1st of the month on the following February.
EXAMPLE 3.2 When Monthly Recurring Payments Are Due and Collected on the 31st
The subscription terms are:
z $25.99 USD a month; the subscriber signs up on Thursday, July 31.