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Why companies lose hundreds of thousands of dollars in Subscriptions?

Getting Subscription Management and recurring payments right is hard.
Companies learn the hard way that custom solutions are painful and a liability.
That simple Stripe solution becomes a bottleneck and a nightmare to maintain when scaling.

I've seen companies lose hundreds of thousands of dollars because of this. These are some of our team experiences:

  • Payments being charged twice
  • Payments failed with no reason on background jobs
  • Magic payment cronjobs stop working and no money was charged for a couple of days.
  • Unable to process payments in checkout from customers that are located in different locations from their legal or card address.
  • Expired coupons applying on subscriptions
  • Coupons applying on up/down grading plans which weren't avaliable for that coupon.
  • Wrong global tax calculation in invoices and therefore on payments.
  • Complex Usage based pricing being wrong charged in plan.
  • Addons being charged more times than it was supposed or being duplicated.

Surely, many of you out there have experience this or other issues and can share your experience?

Note: I am Co-founder of Abowire and eagerly working to avoid subscriptions businesses go through this pain.

on July 30, 2020