Stripe Subscription Management

Recurring billing system with plan changes, cancellations, and payment method updates

PaymentsComplexWeb3-5 days

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Stripe Subscription Management

Overview

A complete subscription billing system that handles recurring payments, plan upgrades/downgrades, cancellations, and payment failures. Users can manage their subscriptions through a self-service portal, while the system automatically processes renewals and sends billing notifications.

User Stories

  • As a user, I want to subscribe to a monthly or annual plan, so that I can access premium features
  • As a subscriber, I want to upgrade or downgrade my plan, so that I can adjust based on my needs
  • As a subscriber, I want to update my payment method, so that I can avoid service interruptions
  • As a subscriber, I want to cancel my subscription anytime, so that I have control over my billing
  • As a subscriber, I want to be notified before renewal, so that I'm not surprised by charges

Acceptance Criteria

  • [ ] Users can select from multiple subscription tiers (Basic, Pro, Enterprise)
  • [ ] Checkout creates Stripe subscription with first payment
  • [ ] Subscription status synced to user account (active, past_due, canceled)
  • [ ] Users can upgrade plans with prorated billing
  • [ ] Users can downgrade plans (effective at period end)
  • [ ] Users can update payment method through customer portal
  • [ ] Users can cancel subscription (access continues until period end)
  • [ ] Email notifications sent for: renewal, payment failed, subscription canceled

Technical Requirements

  • Create Stripe Products and Prices for each subscription tier
  • Use Stripe Customer Portal for self-service management
  • Implement webhooks for subscription lifecycle events
  • Handle prorated charges for mid-cycle upgrades
  • Store subscription ID and status in user database
  • Restrict feature access based on subscription tier
  • Implement dunning logic for failed payments (retry 3 times over 7 days)
  • Generate invoice PDFs and send via email

Edge Cases

  • Payment fails during renewal → Mark subscription as past_due, send payment update reminder, retry 3 times
  • User changes plan multiple times in same period → Apply prorated credit from downgrade to upgrade
  • User cancels then re-subscribes → Create new subscription, preserve customer data
  • Subscription canceled but user still has access → Access valid until period_end date
  • Annual subscriber requests refund mid-year → Process partial refund, cancel immediately

Out of Scope

  • Usage-based billing (metered pricing)
  • Free trials (can be added as separate task)
  • Multiple subscriptions per user
  • Team/group subscriptions
  • Discount codes and coupons

Related Features

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