Hi. my question is: About subscription billing are prorated credits calculated by shopify? it is not written explicetly on the page or written but maybe vagualy. when i am testing the billing api i am always getting requested price, not reduced price based on my current testing billing plan ?
Hi Vlad,
The calculation of prorated credits for subscription billing is handled by Shopify. When you’re testing the Billing API and getting the requested price instead of a reduced price, could it be due to the specific conditions of your testing environment or the way the API is being called?
Hi again Vlad - just wanted to share our docs on prorated credits which may be helpful: About subscription billing
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This is actually really timely - I just had a merchant ask if cancelations are prorated, do you know if they are as well @Liam-Shopify ?
Or do we need to issue partial refunds for reoccurring flat subscription amounts?
For example:
- 30 days billing cycle
- $30 subscription flat fee
- Merchant cancels 15 days (50%) into cycle
Will their reoccurring charge be $15, or the flat $30?
@Dylan It’s not explicitly spelled out in the docs, but in the merchant facing Shopify help center (https://help.shopify.com/en/manual/your-account/manage-billing/your-invoice/apps#app-prorating-upgrades-downgrades), as well as from my own experience dealing with this situation, it’s clear that prorations only happen automatically for plan upgrade/downgrades, not uninstalls/cancelations.
The closest hint to this is the documentation that app charges are applied even if the app is uninstalled just a day or two into the billing period (https://help.shopify.com/en/manual/your-account/manage-billing/your-invoice/apps#uninstalling-apps-with-recurring-charges).
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Thanks @Brett - good to know!