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Razorpay Subscriptions

Razorpay Subscriptions provides you with a platform to set up and manage recurring payments. These recurring payments are payments that:

Using Razorpay Subscriptions, you can automatically charge customers based on a billing cycle that you control. It allows you to easily create and manage subscriptions and get instant alerts on payment activity as well as the status of subscriptions.

Razorpay automatically handles the invoicing for all subscriptions, thus, providing you an end-to-end solution.

How Subscriptions Work#

Subscriptions does not require any intervention from the customer. It is an automated payment collection system that requires a one-time approval from the customer via an authentication transaction. Following points explain how a subscription works:

  1. The customer’s approval is sought before recurring payments are collected. This approval process works just like any normal payments with the 3D Secure authentication step. This is what we refer to as an authentication transaction.
  2. Once the authentication transaction is successfully completed, the card is automatically charged at the start of every billing cycle.
  3. For every recurring payment, Razorpay automatically generates an invoice that includes customer and subscription details along with your branding. This makes Subscriptions an end-to-end solution.

Subscription Payment Flow:
Razorpay Subscriptions is based on Razorpay’s existing payment flow. If you are new to Razorpay, we recommend you to understand this flow first before you read any further.

Billing Models#

Razorpay Subscriptions supports three different billing models:

  • Fixed Schedule and Fixed Amount: The customer is charged a fixed amount at fixed intervals of time for a fixed quantity or goods or services. This is done by first creating a plan with a fixed amount and fixed billing frequency and then creating a subscription based on this plan with no add-ons.

  • Fixed Schedule and Fixed Amount plus Add-ons: The customer is charged a fixed amount at fixed intervals of time, but can avail extra goods or services by paying an extra charge for them. This is done by first creating a plan with a fixed amount and billing frequency and then creating a subscription based on this plan. The extra goods or services availed can be added to the subscription via add-ons.

  • Fixed Schedule and Variable Amount: The customer is charged at fixed intervals of time according to their usage in the defined time interval. Here, the subscription amount and the quantity of the goods or services are not fixed. This is done by first creating a plan with a fixed amount (this can be as low as ₹1) and a billing frequency. You proceed to create a subscription based on this plan and charge the customer a variable amount based on their usage via add-ons.