We have a customer that we want to transition to a new subscription plan. The plan is the same price, but we granted higher tier limits since they are a KOL customer as we get started.
They are trying to switch to this plan mid-cycle, and I understand that Shopify needs to collect payment for them up front and move them to a new recurring billing cycle.
However what isn’t clear is that since they are moving from a $100 plan to a new $100 plan, and they pay $100 mid-cycle when they move to the new plan, are they credited anything for their full payment made at the beginning of the current billing cycle? It seems that they would be, but I don’t see anywhere where Shopify says that explicitly. Will it get credited to them on their next Shopify invoice?
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Hey @Nathan_Reyes ,
Typically, when a plan changes if there’s a difference in price, then the proration behavior will be applied. In this case, since the merchant is changing mid cycle, but the price is the same, there wouldn’t be any proration or deferral behavior.
The merchant would just continue to be billed the same amount on their existing schedule. Since both plans cost $100, they won’t be charged anything extra when switching, nor will they receive any credits. Their billing cycle remains unchanged, the only thing different would be the current plan.
Thanks @KyleG-Shopify for the reply. I think I understand now. I think there was some pause on the customer’s end because they saw this ‘Due Apr 15’ here and thought they would be charged full price again for the upgrade mid-cycle. I’m not sure when the transaction actually happens. Your comment makes me think the normal transaction billing date (May 3rd) will remain unchanged.
Hey Nathan,
Yes, the actual billing transaction will happen on the merchants current billing cycle. Your app billing cycle should remain unchanged.
