How does proration work if I change plans | Ottomatik

How does proration work if I change plans

If you switch subscription plans in the middle of a billing period, here's what happens:

  • If the new plan has a different billing frequency from the old plan (for example, monthly to yearly)

    • The first full period of the new plan begins immediately, and you are charged for the first period less the account balance.
  • If the new plan has the same billing frequency, we do something slightly more complex, but with the result of keeping the billing schedule the same:

    • We immediately create a line item for the remaining portion of the current billing period at the new plan rate
       
    • At the next scheduled billing, the customer is charged for the line item and the full charge for the upcoming period, less the account balance.
       
  • If the account balance amount is larger than the amount due, you are not charged anything, and the account balance is carried over to future billing periods, until it's spent down.