How do you charge a pre-termination fee?

[Odi_3]

I offer subscription services which is based on an annual contract. To make it lighter for my clients, I want to give the option of making them pay monthly. (Total / 12)  However, I want to charge the balance of the annual fee should they decide to pre-terminate the services. Is this possible at all?

[puka]

Hi @Odi_3 - I want to make sure I'm understanding your question correctly. The way I interpreted it is that you want to be able to charge your clients monthly, but should they terminate services before the 12 months are up, you would then send them the remaining balance for the year. Does that sound correct to you?

If so, there isn't an automatic way to do this, but there is a possible manual solution for you. Our Recurring Invoices feature would allow you to save a customer's Card on File and automatically charge monthly for as long as you need. If your client decides to terminate before the end of the contract, this is where it gets manual. At that point, you would need to close out the recurring Invoice series and then calculate the sum of the remaining payments in a separate, individual Invoice. You can choose to charge the same Card on File before sending it out to make sure that you are paid.

Hope that helps get you in the right direction, but if I've misunderstood your needs, please feel free to provide more information on what you're looking to do.