What is Pro Rata Billing? Why is my first invoice amount different from my renewal price?

 

We charge invoices on the first day of the month. That is, renewal invoices are due on the first day of each month. Your first invoice covers a few days more or less than your billing term to make the renewal date on the first day of the month.

 

You are not paying anything less or more. When your first invoice is less than the renewal price, the period you are paying for is a few days shorter than your billing term. Similarly, when your first invoice is more than the renewal price, the period you are paying for is a few days larger than your billing term.

 

1.

You are billed only for the remaining days of the current month in the first invoice.

If you order a monthly service on March 10, you will be billed for March 10 to April 01. The price for March 01 to 09 will be deducted.

Any renewal invoice will bill you for the full monthly term (e.g., April 01 to May 01).

 

2.

If you order on or after the 23rd day of the current month, your first invoice covers the remaining days of the current month plus the next month.

That is, if you order a monthly service on March 23, you will be billed for March 23 to 31 + April 01 to 30 (remaining days of the current month + next month).

Any renewal invoice will bill you for the monthly term only (e.g., May 01 to June 01).

 

3.

If you order an annual service on March 23, 2020, you will be billed for March 23, 2020, to March 01, 2021. The price for March 01 to 22 will be deducted from the first invoice.

Any renewal invoice will bill you for the full annual term (March 01, 2021, to March 01, 2022).

 

Pro Rata Billing

We bill products on the same day each month and charge a prorated amount at the initial time of order. This is called Pro Rata Billing. This is why the total amount in your first invoice is different from your renewal price.

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