About subscription contracts

A subscription contract is the agreement between a customer and a merchant over a specific term for recurring purchases over a set or undefined period of time.

A subscription contract is the result of purchasing a selling plan that has recurring policies. After a customer purchases a subscription product or variant at checkout, Shopify generates a subscription contract and shares the subscription contract with your app using a webhook.

At the time of subscription renewal, apps charge customers for their subscriptions by initiating a billing attempt on the subscription contract. And a new order will be created.