Setting Up Recurring Payments

Learn how to implement and manage recurring payments for subscription-based services.

System Design

Key components:

1. Subscription management
2. Payment processing
3. Retry logic
4. Notification system

Implementation

Basic setup:

// Subscription handler
class SubscriptionManager {
  async createSubscription(userId, plan) {
    const subscription = await this.validateAndCreate(userId, plan);
    await this.schedulePayments(subscription);
    return subscription;
  }

  async processRecurringPayment(subscriptionId) {
    const payment = await this.attemptPayment(subscriptionId);
    if (!payment.success) {
      await this.handleFailure(subscriptionId);
    }
    return payment;
  }
}

Payment Retry Strategy

Handle failed payments:

1. Initial attempt
2. Retry after 3 days
3. Final attempt after 7 days
4. Subscription suspension

Customer Communication

Keep customers informed:

• Payment reminders
• Success notifications
• Failure alerts
• Renewal notices

Reporting

Track key metrics:

• Success rate
• Churn rate
• Revenue metrics
• Customer lifetime value

Best Practices

Important considerations:

1. Clear pricing
2. Flexible billing
3. Easy cancellation
4. Good support