CODEWITHSUNDEEP
stripe-payments
gb_spectrum
gb_spectrum

Reputation: 2301

Stripe - Subscriptions, prorated, and change in quantities during subscription period

There is a yearly subscription plan at $100/year. A customer can adjust the quantity of said subscription. So lets suppose a customer starts off with a quantity of 10. Half way through the period, the customer decides to increase the quantity from 10 to 20.

At the start of the next billing cycle... what will the customer be charged? Will it be $2500?

Beginning of Period 1: $100 * 10 = $1000

Beginning of Period 2: ($100 * 20) + (100 * 10)/2 = $2500

And if they decrease the quantity half way through, would they get a refund at the beginning of the next Period?

Upvotes: 1

Views: 2586

Answers (1)

Matt Davis
Matt Davis

Reputation: 470

When the new plan is less expensive than the current plan, the prorated credit is larger than the new amount due. For example, if the customer switches from the $30/month plan to the $10/month plan exactly halfway through the billing cycle, the customer receives a net credit of $10: a credit of $15 for the unused portion of the old plan less a charge of $5 for the remaining time on the new plan. The next invoice, at the start of the next billing period, reflects the $10 credit and the $10 due for a full, upcoming month on the new plan, resulting in a net amount due of $0. When credits are created, they’ll continue to apply to subsequent invoices until the credit is covered and payment is due again. For example, a move from a $50/month plan until a $10/month plan—exactly halfway through the billing period—results in a net credit of $20: a credit of $25 for the unused portion of the more expensive plan and a debit of $5 to pay for the remainder of the billing period on the new plan. The next two invoices would net to $0. The prorated amount is calculated down to the second by Stripe. We calculate the difference between the two plans based on the time the API call was made to change the customer’s subscription, using the current billing period’s start and end times.

https://stripe.com/docs/subscriptions/upgrading-downgrading

So essentially yes - they would receive a discount on their next invoice if they downgraded their plan. If they increased their plan, the prorate amount would be added to their next invoice.

Upvotes: 1

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