Billing

When to Use

User needs to implement or debug payment processing, subscription lifecycles, invoicing, or revenue operations. Agent handles Stripe/Paddle integration, webhook architecture, multi-currency, tax compliance, chargebacks, usage-based billing, marketplace splits, and revenue recognition patterns.

Quick Reference

Topic	File
Stripe integration	stripe.md
Webhooks & events	webhooks.md
Subscription lifecycle	subscriptions.md
Invoice generation	invoicing.md
Tax compliance	tax.md
Usage-based billing	usage-billing.md
Chargebacks & disputes	disputes.md
Marketplace payments	marketplace.md
Revenue recognition	revenue-recognition.md

Core Rules

1. Money in Smallest Units, Always

• Stripe/most PSPs use cents: amount: 1000 = $10.00
• Store amounts as integers, NEVER floats (floating-point math fails)
• Always clarify currency in variable names: amount_cents_usd
• Different currencies have different decimal places (JPY has 0, KWD has 3)

2. Webhook Security is Non-Negotiable

• ALWAYS verify signatures before processing (Stripe-Signature header)
• Store event_id and check idempotency — webhooks duplicate
• Events arrive out of order — design state machines, not sequential flows
• Use raw request body for signature verification, not parsed JSON
• See webhooks.md for implementation patterns

3. Subscription State Machine

Critical states and transitions:

State	Meaning	Access
trialing	Free trial period	✅ Full
active	Paid and current	✅ Full
past_due	Payment failed, retrying	⚠️ Grace period
canceled	Will end at period end	✅ Until period_end
unpaid	Exhausted retries	❌ None

Never grant access based on status === 'active' alone — check current_period_end.

4. Cancel vs Delete: Revenue at Stake

• cancel_at_period_end: true → Access until period ends, stops renewal
• subscription.delete() → Immediate termination, possible refund
• Confusing these loses revenue OR creates angry customers
• Default to cancel-at-period-end; immediate delete only when requested

5. Proration Requires Explicit Choice

When changing plans mid-cycle:

Mode	Behavior	Use When
create_prorations	Credit unused, charge new	Standard upgrades
none	Change at renewal only	Downgrades
always_invoice	Immediate charge/credit	Enterprise billing

Never rely on PSP defaults — specify explicitly every time.

6. Race Conditions Are Guaranteed

customer.subscription.updated fires BEFORE invoice.paid frequently.

• Design for eventual consistency
• Use database transactions for access changes
• Idempotent handlers that can safely reprocess
• Status checks before granting/revoking access

7. Tax Compliance Is Not Optional

Scenario	Action
Same country	Charge local VAT/sales tax
EU B2B + valid VAT	0% reverse charge (verify via VIES)
EU B2C	MOSS — charge buyer's country VAT
US	Sales tax varies by 11,000+ jurisdictions
Export (non-EU)	0% typically

Missing required invoice fields = legally invalid invoice. See tax.md.

8. PCI-DSS: Never Touch Card Data

• NEVER store PAN, CVV, or magnetic stripe data
• Only store PSP tokens (pm_*, cus_*)
• Tokenization happens client-side (Stripe.js, Elements)
• Even "last 4 digits + expiry" is PCI scope if stored together
• See disputes.md for compliance patterns

9. Chargebacks Have Deadlines

Stage	Timeline	Action
Inquiry	1-3 days	Provide evidence proactively
Dispute opened	7-21 days	Submit compelling evidence
Deadline missed	Automatic loss	Set alerts

3 intentos de cobro fallidos consecutivos = posible trigger de fraude monitoring.

10. Revenue Recognition ≠ Cash Collected

For SaaS under ASC 606/IFRS 15:

• Annual payment ≠ annual revenue (recognized monthly)
• Deferred revenue is a liability, not an asset
• Multi-element contracts require allocation to performance obligations
• See revenue-recognition.md for accounting patterns

Billing Traps

Security & Compliance

• Webhook without signature verification → attackers fake invoice.paid
• Storing tokens in frontend JS → extractable by attackers
• CVV in logs → PCI violation, massive fines
• Retry loops without limits → fraud monitoring triggers

Integration Errors

• Not storing subscription_id → impossible to reconcile refunds
• Assuming charge success = payment complete (3D Secure exists)
• Ignoring payment_intent.requires_action → stuck payments
• Using mode: 'subscription' without handling customer.subscription.deleted

Financial Errors

• Hardcoding tax rates → wrong when rates change
• Amounts in dollars when PSP expects cents → 100x overcharge
• Recognizing 100% revenue upfront on annual plans → audit findings
• Confusing bookings vs billings vs revenue → material discrepancies

Operational Errors

• Sending payment reminders during contractual grace period
• Dunning without checking for open disputes → double loss
• Proration without specifying mode → unexpected customer charges
• Refunding without checking for existing chargeback → paying twice