Implementing Prorations and Metered Billing
Understand and apply prorations for mid-cycle changes and set up metered billing for usage-based subscription models.
Flexible Billing: Intro
Welcome to advanced subscription features! Many businesses need more flexible billing than just a fixed monthly or yearly fee.
Today, we'll dive into two powerful concepts: prorations and metered billing. These allow you to handle mid-cycle changes and usage-based pricing with ease.
What are Prorations?
Imagine a customer upgrades their subscription plan halfway through their billing cycle. What happens to the money they already paid for the cheaper plan?
Proration is the process of proportionally adjusting charges when a subscription changes mid-cycle. Stripe automatically calculates this for you.
- Credit: For the unused portion of the old plan.
- Charge: For the new plan's usage up to the end of the current cycle.
All lessons in this course
- Handling Trial Periods and Plan Upgrades
- Implementing Prorations and Metered Billing
- Subscription Lifecycle Management & Events
- Coupons, Discounts, and Promotion Codes