Navigating the intricate realm of online subscription site management, especially in the credit card processing space, necessitates a profound understanding of billing dynamics, and that’s where the Grace Period feature becomes pivotal.
A Glimpse into Online Subscription Billing:
When a member subscribes to your site, our bank liaises electronically with the member's bank to affirm fund availability. Upon successful verification, our bank communicates with ModelCentro, and we grant the user access to your content. The profitability of a monthly subscription model hinges on ModelCentro’s capability to consistently bill your subscribers monthly, with each rebill incrementing your revenue.
The Significance of the Grace Period:
Activating the Grace Period ensures optimal member billing success, directly influencing your revenue positively. Here’s how it works:
If a member lacks sufficient funds during a billing attempt for the next month's access, ModelCentro will try to charge the member bi-weekly for two weeks.
This approach often recovers substantial revenue in subscription models, given that a member's financial status may fluctuate within a month (e.g., between paychecks).
Thus, enabling the Grace Period provides a buffer, allowing financial dynamics to stabilize (like awaiting a paycheck) and facilitating a successful transaction thereafter. Importantly, the member retains access to your profile during this period, minimizing subscription attrition due to temporary financial shortcomings.
Grace Period Across All Subscriptions:
Regardless of the chosen subscription type (monthly, quarterly, annually, etc.), if a member lacks funds during a rebill attempt, the Grace Period is initiated, ensuring continuous access and member retention.