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What is automatic renewal?

au - to - ma - tic  re- new - al
noun

Automatic renewal refers to a billing mechanism wherein a customer's subscription is automatically extended at the conclusion of the subscription period, whether on a weekly, monthly, yearly or other agreed-upon basis.

This process takes place without requiring any action from the customer. To ensure continued access to the product or service in the upcoming billing cycle, the automatic renewal implies an automated charge to the customer's credit or debit card or an alternative designated payment method.

How does the automatic renewal process operate?

Customers are typically notified either before or after the payment is processed, with the recommended practice being to inform them before any charges are made. This proactive communication allows customers the option to cancel the renewal if they choose to discontinue the service. Additionally, it is essential for customers to retain the ability to deactivate the automatic renewal feature, switching instead to manual renewals, without necessitating the cancellation of their subscription. This offers users greater flexibility in managing their subscriptions according to their preferences and needs.