Reactivate stripe subscription based on the payment date instead of the original renewal date

In my Typescript application, I have integrated Stripe subscriptions. Let's consider a scenario where a customer is on the monthly plan for $10 with auto-renewal set up. Now, if this customer has an expired card on file and misses payment on the auto-renew date (let's say 5th of January 2024) but updates their card details four days later (9th of Jan), there arises an issue. The current code doesn't update the next invoice date from 5th of February to 9th of February, causing the customer to miss out on 4 days of access even after paying for the full month.

To address this challenge, I made changes to my code by listening to the `invoice.payment_succeeded` webhook and updating the `billing_cycle_anchor` to 'now':

subscription = await this.stripeModule.updateSubscription(subscriptionId, {
                billing_cycle_anchor: 'now',
                proration_behavior: 'none',
            });

While this modification resolves the date issue, it results in the customer being invoiced twice - once for the failed invoice marked as 'Paid' and another for the subscription update generated by Stripe, both charging $10.

My current solution involves issuing a refund for one of the invoices, but I am seeking advice on a more efficient way to prevent double invoicing and avoid the need for refunds. Any suggestions on how to handle this situation would be greatly appreciated.

Answer №1

Stripe advises maintaining customer access even after a failed initial payment attempt, as they will continue to retry paying the Invoice multiple times. It is common for recurring payments to fail once before succeeding on a subsequent attempt.

Following this recommendation means that Stripe assumes the service was still provided during the period in question, even if the payment was delayed. This approach is similar to how other service providers handle payment delays without immediately cutting off access.

However, it seems that your business model requires an immediate pause in services upon a failed payment attempt, which Stripe does not directly support at this time. In this case, you would need to find a workaround to achieve your desired subscription handling.

One suggestion is to prompt your customer to re-enter their payment details to resume the subscription. By utilizing the Pending Updates feature, you can make changes to the Subscription but only implement them once the pending Invoice is paid.

When the customer accesses your app, you can use the Update Subscription API with specific parameters to ignore the unpaid invoice and ensure any changes are applied only after successful payment. This process may involve generating a new PaymentIntent for confirmation.

If the payment is successful, the customer will have a new invoice for the current period. If further payment issues arise, you can use the new PaymentIntent to try again with updated payment information. Once resolved, you can void the previous invoice to prevent duplicate payment attempts.

While this method may seem complex, it offers a way to manage subscriptions effectively without providing service during payment retries.

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