A subscription product behaves like any other WooCommerce product with a billing schedule attached: weekly, monthly, annually, or a custom interval, plus an optional free trial or signup fee. Once purchased, it generates a parent subscription and a renewal order each billing cycle, charging whatever payment method the gateway tokenized at the original purchase, no card re-entry required.
The subscription itself moves through statuses as its billing history changes: active while payments are current, on-hold when a renewal charge fails, pending-cancellation if it's set to end at the close of the current period rather than immediately, and expired or cancelled once it's actually over. A customer can switch between subscription plans too, upgrading or downgrading, with WooCommerce Subscriptions handling the proration math for the switch automatically.
A separate official extension, WooCommerce Memberships, ties access, to specific content, products, or discounts, to either a one-time purchase or a subscription. The two extensions work together but aren't the same product: Subscriptions handles the recurring charge, Memberships handles what access that purchase grants.