The credit card processing space is a very complicated segment of managing a subscription site online. It relies on many different elements to line up all at once to transact a sale for a site. It’s important to understand how the billing works to see the value of the Grace Period feature.
Here is the explanation of how billing works for subscription products online.
When one of your members/subscribers signs up to your site, our bank contacts the members bank electronically to verify that his account has the funds to purchase the membership to your site. The member's bank either confirms or denies that the member has the money to purchase your membership electronically. In the case of successful funds verification, our bank then communicates with the ModelCentro and we allow access to the user.
Now, the power of a monthly subscription program for models and ModelCentro relies on ModelCentro being able to bill your subscribers each month. The more months the member rebills, the more money you make.
Here is the important part. With GRACE PERIOD turned on you will maximize your members monthly billing success to the very highest level. Without it, you will lose money.
If ModelCentro attempts to charge the member for the next month’s worth of access to your private profile, and the member doesn’t have funds in the account for any reason, we will attempt to charge the member twice a week, for two weeks. This is a very common procedure in the credit card billing space, and it reclaims a lot of money for people in monthly subscriptions. There are a number of reasons that a members bank account may not have enough funds at the moment of the monthly rebill, so allowing the GRACE PERIOD, allows the financial institutions to catch up. Maybe the member has no money on the 20th of the month but receives a paycheck on the 23rd. GRACE PERIOD would catch this activity, and make a successful transaction. You don’t lose the member to your profile when this is activated.
Regardless of the subscription that the member chooses on your profile (monthly, 3 months, one year, etc.), when ModelCentro attempts to bill them again, and there are no funds, we start the GRACE PERIOD. During this time, the user does not lose access, and that is the idea. You don’t want to lose members because it’s a challenge to acquire them in the first place.
Turn on GRACE PERIOD, and MAXIMIZE your monthly revenues.
Please let us know at support, should you have any questions.