Billing cycle
Billing cycle
Subscriptions
The interval between charges on a subscription, such as weekly, monthly, quarterly or yearly.
What is Billing cycle?
The billing cycle and the delivery schedule are often the same, but not always. A prepaid plan, for example, bills once and delivers several times.
Billing dates can follow the signup date (a customer who subscribes on the 12th is billed on the 12th) or be anchored to a fixed day for everyone, like the 1st of the month. When a customer changes plans mid-cycle, the difference may be pro-rated so they pay only for the part of the cycle they use.
Example
For example, a customer on a 6-month prepaid plan for $150 is billed once every six months, but receives a delivery every month. A customer on a monthly plan for $28 is billed and shipped each month.
Why Billing cycle Matters
Picking the right billing cycle affects cash flow, cancellations and how often customers think about whether to stay.
Explore More Terms
Browse our complete glossary of e-commerce and subscription terms.
