Subscription Rental Service

[waretowear]

Hi Square community!

I run a vintage shop, and want to launch a tiered monthly subscription program where customers can rent a certain number of items for 30 days depending on the tier they choose. It would have to be something I process in store, so directing customers to a website feels clunky. I've briefly tested the built-in subscriptions function, and it seems like customers can cancel from anywhere at any time? (Maybe I had some settings wrong). I can't risk having someone rent items, get them home, and then immediately cancel the subscription and keep the items.

Is there a more efficient way to set up a recurring subscription like this? My current rental method on a per-item basis is to add a card on file for each renter, so if it comes down to it, I suppose in theory I could set up a reminder every 30 days that it's time to charge their card on file for the subscription, maybe send out a reminder text a week in advance? I would prefer something more automated and streamlined, but still within the Square universe so my customers can earn loyalty rewards on their subscriptions as well.

Thanks in advance for any thoughts/possible solutions!

[Laurie_]

Hi @waretowear,

Thanks for your question!

From my testing, if a customer cancels a subscription, it doesn’t affect any past billing. The cancellation only applies to the next scheduled billing date. That said, customers can pause at any time (which is a setting you can choose to enable), which could create challenges if someone tries to use that to skip the next bill before returning the clothes. Additionally, all subscription customers will have the ability to manager their own settings, which includes cancelling their subscriptions.

Are you hoping for this to be something customers manage themselves online (e.g. enrolling in the subscription online), or would you prefer more control, for example, enrolling them in a plan in person or in-store?

In terms of options through Square, to create an automatic recurring charge you need to either set up Subscriptions or a recurring Square Invoice series. With recurring invoices, you can set a billing cycle and charge a customer’s card on file automatically.

For a rental model, one approach to consider would be using recurring invoices to charge the rental fee, along with a separate invoice to charge a deposit. Once the items are returned in good condition and on time, you could refund the deposit. That may give you a bit more control and added security, and provide some incentive for customers to return their items.

I’d also strongly recommend putting a rental agreement in place that clearly outlines the terms, return conditions, and any fees for damage or late returns.

Ultimately, the setup will likely require some manual oversight. In the meantime, I hope this helps give you more of an idea of what options are available to you.