How subscription billing cycles 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.

Weekly Billing Cycles

Recurring payments are collected on the same day of the week.

For example, if a subscription is $10 USD a week and the subscriber signs up on Tuesday, December 23, the subscriber is billed as follows:

  • Tuesday, December 23 = $10.00 USD
  • Tuesday, December 30 = $10.00 USD
  • Tuesday, January 6 = $10.00 USD
  • and so on

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: Monthly recurring payments due and collected on the 31st

If the subscription terms are $25.99 USD a month and the subscriber signs up on Thursday, July 31. The subscriber is billed as follows:

  • Thursday, July 31 = $25.99 USD
  • Saturday, August 31 = $25.99 USD
  • Wednesday, October 1= $25.99 USD
  • Saturday, November 1= $25.99 USD
  • and so on

Notice that no recurring monthly payment was collected in September, but recurring payments were collected roughly every 30 days.

Example: Monthly recurring payments due and collected on the 30th

If the subscription terms are $25.99 USD a month and the subscriber signs up on Tuesday, December 30, the subscriber is billed as follows:

  • Tuesday, December 30 = $25.99 USD
  • Friday, January 30 = $25.99 USD
  • Sunday, March 1= $25.99 USD
  • Wednesday, April 1= $25.99USD
  • and so on

Notice that no recurring monthly payment was collected in February, but recurring payments were collected roughly every 30 days.

Yearly Billing Cycles

Recurring payments are collected on the same month and day each year. If the initial recurring payment falls on February 29th of a leap year, PayPal adjusts the billing cycle to February 28th or March 1st the following year.

Example: Yearly recurring payments due and collected on the February 29th

If the subscription terms are $125.99 USD a year and the subscriber signs up on Friday, February 29th, the subscriber is billed as follows:

  • Friday, February 29, 2012 = $125.99 USD
  • Sunday, March 1, 2013 = $125.99 USD
  • Sunday, March 1, 2014 = $125.99 USD
  • and so on

See also