No, Hostwinds has not accepted or supported PayPal Subscriptions since 2016. While the Subscriptions had benefits, there were drawbacks that would cause inconveniences for our clients, which eventually prompted us to switch to Billing Agreements.
How Is a Subscription Different than a Billing Agreement?
A PayPal Subscription differs from a Billing Agreements largely in how they work. A Subscription would be set up by the PayPal account holder, who would instruct PayPal to send a payment on a certain day, for a certain amount, for a set duration. In many instances, this would be set as “Indefinite.” Ultimately, there is no input from the merchant when a Subscription is created, meaning that no updates or changes in Billing are able to be applied without the PayPal account holder manually adjusting them.
Since the Subscription can only be adjusted by the PayPal account holder, it would continue to pull funds as instructed until a change is manually made through the PayPal portal.
Unfortunately, if such a manual change is not made, it can lead to:
- PayPal sending payments for canceled services
- PayPal sending underpayments for upgraded services
- PayPal sending overpayments for downgraded services
- PayPal sending payments for services that have already been paid for by a different means (Billing Agreement, Credit Card, Cryptocurrency, or Alipay)
Whereas, a Billing Agreement would send funds only based off invoices that Hostwinds generates, thus adjusting as needed automatically, and if needed can be canceled on Hostwinds’ end.
For these reasons, Hostwinds discontinued support for PayPal Subscriptions, in favor of Billing Agreements.
What If I Never Canceled My Old PayPal Subscription after Getting a Billing Agreement?
If a Subscription was left active, it would likely have continued to pull funds as it was originally set up to do. As Hostwinds has stopped supporting Subscriptions those payments would not apply to any accounts with us.
As such, even if payment is sent via a Subscription, it would leave invoices on an account unpaid. This will then prompt for payment to be pulled using payment methods we accept, such as PayPal Billing Agreements.
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