How Does Overage Billing Work?
Monthly overage is calculated based on the maximum number of users in your account at any point during a billing period.
The way overage usage is billed is different from the subscription plan. The monthly subscription charge is billed ahead of time (at the beginning of the billing cycle) for future usage. However, the overage charge is billed looking backwards (at the end of the billing cycle) for usage in the past. Given this, you may be billed for past overage after you have cancelled your subscription.
- You subscribed to Business plan on Jan 1 (covering the period Jan 1 - Feb 1) and only got charged for that plan's monthly price.
- Some time between Jan 1 - Feb 1 you've gotten to 40k users already, which means an overage of 15k users. Even if you delete 5k users, your maximum overage in this period remains at 15k.
- On Feb 1, you got billed again for the Business plan subscription renewal (to cover the incoming period Feb 1 - Mar 1) AND this time also for the 15k users overage from the previous billing period (Jan 1 - Feb 1).
- Between Feb 1 - Mar 1, you've reached 60k users, which means an overage of 35k users, but your campaign has also ended and you decided to cancel your Business plan subscription effective immediately. This means you will no longer be renewed for the plan starting Mar 1, BUT on that date you will still be billed, for the last time, for the 35k users overage from the prior billing period (Feb 1 - Mar 1).
This way, you are only billed for the highest overage count when they have occurred within a billing cycle, and not in advance.