Is a subscription activated only after the setup fee payment is completed?

[dbnicholson]

We're offering a subscription with a setup fee and need to record the subscription activation and setup fee correctly. We are receiving webhooks for BILLING.SUBSCRIPTION.CREATED, BILLING.SUBSCRIPTION.ACTIVATED and PAYMENT.SALE.COMPLETED.

Currently we're assuming that the subscription will only be activated once the setup fee payment has completed. Is that correct? What happens when the setup fee payment fails in the subscription agreement dialogue? I've tried to simulate a failed payment in the sandbox but I can't figure out how to make that happen.

@dsdrake

[dbnicholson]

I should also mention that our billing plan is configured with setup_fee_failure_action set to CANCEL. Does the subscription ever become ACTIVE before it's cancelled in this case?

[Medast123]

I would like to cancel.