Glossary

Glossary of recurring billing terms.

Short definitions of the terms used when you sell and run a recurring service, with how each one applies in Komashi.

Recurring billing Charging a customer again on a fixed schedule for an ongoing service, until the agreement changes or ends.
Subscription management Running the whole recurring agreement, from sign-up and plan changes to renewal and cancellation, not only the charges.
Subscription checkout The purchase step for a recurring offer, showing which amounts repeat, which are one-time and what tax applies.
Customer portal A self-service page where a subscriber sees their own agreement and makes the changes you allow.
Billing period The fixed span of time one recurring charge covers, such as a month or a year, and the date it renews.
Usage-based pricing A price that depends on how much of a service a customer uses, often on top of a fixed recurring fee.
Recurring add-on vs setup fee A recurring add-on repeats with the package. A setup fee is charged once, usually at the start.
VAT ID validation Checking an EU business customer's VAT number in the official VIES register before the sale is treated as B2B.
MRR vs ARR Monthly recurring revenue and annual recurring revenue: the same recurring income, stated per month or per year.
Churn The share of customers or recurring revenue lost in a period through cancellation, non-renewal or failed payment.

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