Hey @Kiran_Nara - thanks for reaching out 
. Based on the guidance in a couple of similar discussions, your proposed structure generally lines up with requirement 1.2.1:
- Merchants who discover and install through Shopify should use Shopify App Pricing or the Billing API for subscriptions and usage.
- Customers with an existing paid billing relationship before connecting Shopify can generally keep their direct billing. I’d tie this to an existing paid subscription/billing relationship, rather than simply an account that was created for free.
- The billing path should be fixed and fully separated, so Shopify-origin merchants can’t reach your Stripe checkout, pricing, credit purchase, or upgrade flows.
These related threads may be helpful:
- Split billing for a multi-channel SaaS
- Billing requirement 1.2 — separating App Store installs from preexisting SaaS customers
For fees generated through other channels, routing everything for a Shopify-origin merchant through Shopify Billing is the safest approach. There isn’t a precise public boundary for whether Amazon/Meta-related usage would be considered separate from the app, so I’d avoid exposing any off-platform billing path for that merchant.
The approval option should not be needed solely because an existing paid customer is retaining their pre-existing billing relationship, provided Shopify-origin merchants cannot access that flow.
That said, approval will ultimately depend on the exact implementation and the paths available to each account type. App Review would make the final decision based on how these flows work in practice, so I can’t guarantee approval from the architecture description alone.
Hope this helps!