How does billing work when you upgrade your plan?

We partner with Stripe, a world leading payments provider, for all of our payments and billing work. None of your Credit Card information is stored with ContractHound and we have no visibility to it.

When you're on a monthly billing plan

Short and simple

When you change your plan, we adjust your bill to reflect the unused portion of your old plan as a credit, and apply the new rate for the remaining days of the month. This ensures you only pay for the services you use at the correct rates.

Your monthly anniversary billing date stays the same. The pro-rated charge and credit that are calculated when you upgrade are reflected on next months bill.

More details, with an example below.

Longer with an example

Monthly Anniversary Date - this is the day of the month that you were originally first billed. So, if that was the 3rd of January, then we bill you every month on the same date. So, we'll bill on the 3rd February, 3rd March, 3rd April and so on. You can see this anniversary date on any invoice or by going to Admin > Billing > Stripe Portal and looking for where it says Your plan renews on XX date

When you upgrade on a monthly billing cycle, some portion of the month we will have delivered you partial service on the old plan. And then we will deliver the rest of the month on the new plan.

However, as we bill in advance, you have already paid us fully for the full month on the old rate.

So, we do what is called a Pro Rate. Let's take an example.

Mary is a customer of ContractHound. She signed up on Jan 1st paying us $95 per month for 50 contracts. On March 10th, she upgrades to a 100 contract plan which costs $190 per month.

In order to charge Mary pro-rata for the month, we do two things:

1. We credit Mary the rest of her month on the old $95 per month plan. March has 31 days so, the daily rate for March would be approximately $3.06 ($95 divided by 31). There are 22 days left in March when we upgrade.

   
   

   We calculate the charge for the 22 remaining days. That is approximately $67.32. That amount is then credited to Mary's account for her next bill on Apr 1st.

   
   
2. Now we need to add a pro-rated charge for the new upgraded plan at the $190 per month rate. The daily rate for March is $6.12 and we have 22 days remaining, so there is a charge added to Mary's account for $134.64 (which is $6.12 x 22) for her next bill on April 1st.

So Mary's bill would look like: