Membership hold rules

When you are placing a membership on hold, you can choose to apply one of two membership hold rules: Prorate or Contract Extension. These rules behave differently depending on whether the membership’s scheduled payment occurs within the hold period. All the examples in this article assume that the membership is set to auto-renew and that all holds starting on the day of the scheduled payment were requested before that day.

For more information, see Memberships.

NoteOur system charges clients at 12:00 a.m. on the day of their scheduled payment. If a client requests a hold on the same day as their scheduled payment, they will still be billed that day.
NoteWhen you add or modify a hold that occurred in the past, the effect of this hold on the payment schedule is applied to the next scheduled payment.
NoteWhen you add or modify a hold that occurs in the future, the effect of this hold on the payment schedule is applied to the scheduled payment for the payment period in which the hold occurs.

In this article:

Hold rule: Prorate

When applied, this membership hold rule accounts for the time that a membership is inactive and adjusts the value of the next scheduled payment accordingly. The behavior of this rule depends on whether a scheduled payment is set to occur within the hold period.

NoteIf the membership is not set to auto-renew, the length of the membership will be extended by the duration of the hold period.

Payment date is not within the hold period

If there is no scheduled payment within the hold period, the client receives a credit for their inactive time, decreasing their next scheduled payment.

Example:

A client has a monthly membership with scheduled payments of $100/month, billed on the first of every month. The client decides to put the membership on hold for three days (January 3th, 4th, and 5th). There is no scheduled payment within the hold period.

As shown in the figure above, the client is billed for the membership’s full value on January 1st and is billed the prorated amount of $90.32 on February 1st to account for the three-day hold period in January. In the payment schedule, you will see that $9.68 is credited towards the second scheduled payment.

Payment date is within the hold period

The behavior of this rule depends on whether you select Outstanding amount is added to the next scheduled payment or Outstanding payments are moved to the day after the hold period ends.

Outstanding amount is added to the next scheduled payment

If a scheduled payment occurs anywhere within the hold period, the client is not billed on that date. Instead, the outstanding amount is added to the next scheduled payment.

Example:

A client has a monthly membership with scheduled payments of $100/month, billed on the first of every month. The client decides to put the membership on hold for three days (January 31st, February 1st, and February 2nd). A scheduled payment occurs within the hold period.

As shown in the figure above, the client is billed for the membership’s full monthly value on January 1st, but the scheduled payment for February 1st is not billed because it falls within the hold period. Instead, the February 1st payment is added to the next scheduled payment on March 1st. The payment on March 1st takes into account that the membership was on hold for one day in January and two days in February, resulting in a prorated credit of $9.68.

Outstanding payments are moved to the day after the hold period ends

If a scheduled payment occurs anywhere within the hold period, the client is not billed on that date. Instead, the client is billed for a prorated amount as soon as the hold period is over. All future scheduled payment dates are moved forward the same number of days as the duration of the hold period.

Example:

A client has a monthly membership with scheduled payments of $100/month, billed on the first of every month. The client decides to put the membership on hold for three days (January 31st, February 1, and February 2nd). A scheduled payment occurs within the hold period.

As shown in the figure above, the client is billed for the membership’s full monthly value on January 1st, but the scheduled payment for February 1st is not billed because it falls within the hold period. Because the client has put the membership on hold for three days, their next scheduled payment is moved forward three days. The payment on February 4th takes into account that the membership was on hold for one day in January and two days in February, resulting in a prorated credit of $9.68. All future payment dates are moved forward the same number of days the membership is on hold.

Hold rule: Contract Extension

When applied, this membership hold rule extends the length of a membership contract by the duration of the hold period. This means that if a membership is placed on hold for three days, the membership is extended by three days. When a membership is placed on hold, its scheduled payment dates are moved forward the same number of days as the duration of the hold period. The behavior of this hold rule depends on whether the hold period begins on the date of a scheduled payment.

NoteAfter a membership has been placed on hold and the next scheduled payment has been moved forward, all future scheduled payments will also be moved forward accordingly.

Hold period does not begin on a scheduled payment date

If the hold period does not start on a scheduled payment date, the next scheduled payment is moved forward the same number of days as the duration of the hold period.

NoteIf a scheduled payment date occurs within the hold period, but the hold period does not start on the scheduled payment date, then this behavior will still be applied (i.e., the next scheduled payment date will be moved forward the same number of days as the duration of the hold period).

Example:

A client has a monthly membership with scheduled payments of $100/month, billed on the first of every month. The client decides to put the membership on hold for three days (January 3rd, 4th, and 5th). The hold does not start on a scheduled payment date.

As shown in the figure above, the client is billed for the membership’s full monthly value on January 1st, but because the client has put the membership on hold for three days, their next scheduled payment is moved forward three days. This moves their next scheduled payment to February 4th. All future payment dates are moved forward the same number of days the membership is on hold.

Hold period begins on a scheduled payment date

If the hold period starts on a scheduled payment date, the client is not billed until the next scheduled payment date. All future scheduled payments are moved forward the same number of days as the duration of the hold period.

Example:

A client has a monthly membership with scheduled payments of $100/month, billed on the first of every month. The client decides to put the membership on hold for three days (February 1st, 2nd, and 3rd). The hold starts on a scheduled payment date.

As shown in the figure above, the client is billed for the membership’s full monthly value on January 1st. Because the hold period begins on February 1st, the date of the next scheduled payment, the client is not billed. Instead, the client is billed for both the February and March payments on March 4th. The next scheduled payment date (as well as all future scheduled payment dates) are moved forward the same number of days the membership is on hold.

NoteUnlike the hold rule Prorate, this rule only changes behavior when the hold period begins on the same day as the scheduled payment.
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