Payment Types & Delivery Frequency
Pay as you go vs. auto-renew prepaid, billing schedules, and renewal anchors — with examples.
The two payment types
| Type | How billing works | Example |
|---|---|---|
| Pay as you go | The customer is charged at every delivery, at the delivery frequency. | $25 coffee bag, delivered and billed every month. Customer pays $25/month until they cancel. |
| Auto-renew prepaid | The customer pays for several deliveries upfront (minimum 2). When the prepaid batch runs out, the subscription automatically renews with another prepaid batch. | 3-month prepaid: customer pays $75 today, receives 3 monthly deliveries, then is charged $75 again for the next 3. |
Which to choose? Pay as you go is simpler and converts better for first-time subscribers. Prepaid gives you cash upfront and lower churn — pair it with a bigger discount to make the upfront payment worth it. You can offer both as separate plans and let customers choose.
Delivery frequency
Each plan has one frequency: every N days, weeks, months, or years (e.g. every 2 weeks, every 3 months). To offer customers a choice of frequencies, add multiple plans to the same group — the widget shows them as a "Delivery frequency" selector.
Enable Show frequency description to add your own explanation under the plan name — useful for prepaid plans ("Billed every 3 months, ships monthly").
Cutoff and renewal anchors
Fine-tune when recurring orders happen:
- Cutoff days — how many days before the billing date changes are locked. Example: with a 3-day cutoff, a customer editing their order 2 days before billing affects the following cycle, not the imminent one. Leave "Unset" if you don't need it.
- Renewal day — anchor renewals to the same weekday as the first order (good for weekly plans: "always ships Monday") or the same day of month (good for monthly: "always the 15th").
- Renewal month — for yearly plans: renew in the same month as the initial order, or pin a specific month.
When exactly are customers charged?
The app charges renewals automatically once per day at a fixed hour in your store's billing timezone. On a contract's billing day, the charge runs, Shopify creates the order, and the next billing date advances by the plan's frequency. You can watch and control all of this per contract:
- The next billing date is shown on the subscription's detail page — and you can Reschedule it.
- Place Order bills a cycle immediately instead of waiting.
- If a charge fails, the retry system takes over — see Failed Payments & Retry Settings.
Every order is tagged in Shopify:
Ego First Orderon the initial purchase,Ego Recurring Orderon renewals. Use these tags to filter orders, build reports, or trigger Shopify Flow automations.
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