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Recurring Billing Scenarios

What to expect with recurring billing based on the billing cycle.

Samantha Postlethwaite avatar
Written by Samantha Postlethwaite
Updated over a month ago

Memberships with no expiration are usually prorated at checkout. Extra fees are excluded from pro rata calculations. Below are some recurring billing scenarios:

- The purchase occurs before the effective date

- The purchase occurs after the effective date


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1. When billing day is on the purchase day

Here's what occurs when buying an ongoing membership with a billing option that uses the purchase date as the monthly billing day.

  • πŸ“˜ When you buy an ongoing membership before its effective date, the full amount is charged at checkout to cover the period between the effective day, up until the day prior to the next billing cycle.

  • πŸ“— When you buy an ongoing membership after its effective date, the full amount is charged at checkout to cover the period between the purchase date, up until the day prior to the next billing cycle.


When the billing day is on the purchase date

Purchase date

October 18th

October 18th

Effective date

November 1st

October 10th

Billing day

Purchase day (the 18th)

Purchase day (the 18th)

At checkout

Oct 18th, the client is

billed a

prorated amount

to cover between

Nov 1st - Nov 17th.

Oct 18th, the client is billed the full amount

to cover between

Oct 18th - Nov 17th.

1st monthly billing

Nov 18th, the client is billed the full amount to cover between

Nov 18th - Dec 17th.

Nov 18th, the client is billed the full amount to cover between

Nov 18th - Dec 17th.

Next monthly billing

Dec 18th, the client is billed the full amount to cover between

Dec 18th - Jan 17th.

Dec 18th, the client is billed the full amount to cover between

Dec 18th - Jan 17th.


2. Billing on a specific day, for a period of one month

Here's what occurs when buying an ongoing membership that uses a specific day of the month as the billing day (to cover for a period of one month).

When there's no effective date

  • πŸ“˜ When you buy an ongoing membership with no effective date & before the billing day, a prorated amount is charged at checkout to cover the period between the purchase date up until the day before the next billing cycle. During the same month, the next invoice occurs on the billing day to cover for the period of one month, up to the day before the next billing cycle. This means the client is invoiced twice the same month.
    ​

  • πŸ“— When you buy an ongoing membership with no effective date & after the billing day, a prorated amount is charged at checkout to cover the period between the purchase date and the last day before the next billing cycle (the day before the next billing day).


Billing day is on a specific day of the month, to cover for a period of one month
(when there's no effective date)

Purchase date

October 13th

October 18th

Effective date

none

none

Billing day

15th of the month

15th of the month

At checkout

Oct 13th, the client is billed a prorated amount to cover between Oct 13 - Oct 14.

Oct 18th, the client is billed a prorated amount to cover between Oct 18 - Nov 14.

1st monthly billing

Oct 15th, the client

is billed to cover between

Oct 15 - Nov 14.

Nov 15th, the client is billed to cover between Nov 15 - Dec 14.

Next monthly billing

Nov 15th, the client is billed to cover between Nov 15 - Dec 14.

Dec 15th, the client is billed to cover between

Dec 15 - Jan 14.

When purchased before the effective date

  • πŸ“˜ When you buy an ongoing membership before the effective date & before the billing day, a prorated amount is charged at checkout to cover the period between the effective date and the last day before the billing day. During the same month, the next invoice occurs on the specific billing day to cover for a period of one month, up to the day before the next billing period. This means the client is invoiced twice the same month.

  • πŸ“— When you buy an ongoing membership before the effective date & after the billing day, a prorated amount is charged at checkout to cover the period between the effective date up to the day before the next billing period (aka billing day).
    ​

Billing day is on a specific day of the month, to cover for a period of one month
(when purchased before the effective date)

Purchase date

October 2nd

October 23rd

Effective date

October 10th

October 25th

Billing day

15th of the month

15th of the month

At checkout

Oct 2nd, the client is charged a prorated amount to cover between

Oct 10 - Oct 14.

Oct 23rd, the client is charged a prorated amount to cover between

Oct 25 - Nov 14

1st monthly billing

Oct 15th, the client is charged the full amount to cover between

Oct 15 - Nov 14.

Nov 15th, the client is charged the full amount to cover between

Nov 15 - Dec 14.

Next monthly billing

Nov 15th, the client is charged the full amount to cover between

Nov 15 - Dec 14.

Dec 15th, the client is charged the full amount to cover between

Dec 15 - Jan 14.

When purchased after the effective date

  • πŸ“˜ When you buy an ongoing membership after the effective date & before the billing day, a prorated amount is charged at checkout to cover the period between the purchase date to the last day before the next billing day. During the same month, the next invoice occurs on the specific billing day to cover a period of one month, up to the last day before the next billing day. This means the client is invoiced twice during the same month.

  • πŸ“— When you buy an ongoing membership after the effective date & after the billing day, a prorated amount is charged at checkout to cover the period between the purchase date up to the last day before the next billing day.
    ​

Billing day is on a specific day of the month, to cover for a period of one month
(when purchased after the effective date)

Purchase date

October 10th

October 20th

Effective date

October 1st

October 1st

Billing day

15th of the month

15th of the month

At checkout

Oct 10th, the client is charged a prorated amount to cover between

Oct 10 - Oct 14.

Oct 20th, the client is charged a prorated amount to cover between

Oct 20 - Nov 14.

1st monthly billing

Oct 15th, the client is charged the full amount to cover between

Oct 15 - Nov 14.

Nov 15th, the client is charged the full amount to cover between

Nov 15 - Dec 14.

Next monthly billing

Nov 15th, the client is charged the full amount to cover between

Nov 15 - Dec 14.

Dec 15th, the client is charged the full amount to cover between

Dec 15 - Jan 14.


3. Billing on a specific day, for the next calendar month

Here's what occurs when buying an ongoing membership with a billing option that uses a specific day (for the next calendar month) as the monthly billing day.

Buy an ongoing membership with no effective date

  • πŸ“˜ When you buy an ongoing membership with no effective date & before the billing day, a prorated amount is charged at checkout to cover the period between the purchase date and the end of the month. During the same month, the next invoice occurs on the billing day to cover the entirety of the next calendar month. This means the client is invoiced twice the same month.

  • πŸ“— When you buy an ongoing membership with no effective date & after the billing day, a prorated amount is charged at checkout to cover the period between the purchase date and the end of the month. In addition, the client is also invoiced the full amount to cover the following month. This means the client is invoiced for two billing periods at checkout.
    ​

Billing day is on a specific day, to cover for current month and next calendar month
(when there's no effective date)

Purchase date

October 18th

October 18th

Effective date

none

none

Billing day

23rd of the month

10th of the month

At checkout

Oct 18th, the client is billed a prorated amount

to cover between

Oct 18th - Oct 31st.

Oct 18th, the client is billed a prorated amount

to cover between

Oct 18th - Oct 31st.

In addition, the full amount is also billed to cover the following month of Nov 1st - Nov 31st.

1st monthly billing

Oct 23rd, the client is billed the full amount to

cover between

Nov 1st - Nov 30th.

Nov 10th, the client is billed the full amount to cover between

Dec 1st - Dec 31st.

Next monthly billing

Nov 23rd, the client is billed the full amount to cover between

Dec 1st - Dec 31st.

Dec 10th, the client is billed the full amount to

cover between

Jan 1st - Jan 31st.


Buy an ongoing membership before the effective date

  • πŸ“˜ When you buy an ongoing membership before the effective date & before the billing day, a prorated amount is charged at checkout to cover the period between the effective date to the end of the month. During the same month, the next invoice occurs on the specific Billing day to cover the entirety of the next calendar month.

  • πŸ“— When you buy an ongoing membership before the effective date & after the billing day, a prorated amount is charged at checkout to cover the period between the effective date to the end of the month. In addition, the client is also invoiced the full amount to cover the following month. This means the client is invoiced for two billing periods at checkout.
    ​

Billing day is on a specific day, to cover for current month and next calendar month
(before the effective date)

Purchase date

October 18th

October 29th

Effective date

October 25th

October 30th

Billing day

23rd of the month

23rd of the month

At checkout

Oct 18th, the client is charged a

prorated amount

to cover between

Oct 25th - Oct 31st.

Oct 29th, the client is charged a prorated amount to cover between Oct 30th-Oct 31st. In addition,

the full amount is

also billed to cover

the following month

of Nov 1st - Nov 31st.

1st monthly billing

Oct 23rd, the client is charged the full amount to cover between

Nov 1st - Nov 30th.

Nov 23rd, the client is charged the full amount to cover between

Dec 1st - Dec 31st.

Next monthly billing

Nov 23rd, the client charged the full amount to cover between

Dec 1st - Dec 31st.

Dec 23rd, the client is charged the full amount to cover between

Jan 1st - Jan 31st.


Buy an ongoing membership after the effective date

  • πŸ“˜ When you buy an ongoing membership after the effective date & before the billing day, a prorated amount is charged at checkout to cover the period between the purchase date to the end of the month. During the same month, the next invoice occurs on the specific Billing day to cover the entirety of the next calendar month. This means the client is invoiced twice during the same month.

  • πŸ“— When you buy an ongoing membership after the effective date & after the billing day, a prorated amount is charged at checkout to cover the period between the the purchase date to the end of the month. In addition, the client is also invoiced the full amount to cover the following month. This means the client is invoiced for two billing periods at checkout.

Billing day is on a specific day, to cover for current month and next calendar month
(after the effective date)

Purchase date

October 24th

October 24th

Effective date

October 1st

October 1st

Billing day

28th of the month

15th of the month

At checkout

October 24th, the client is charged a

prorated amount

to cover between

Oct 24th - Oct 31st.

October 24th, the client

is charged a

prorated amount to cover between Oct 24th - Oct 31st. In addition, the full amount is also billed to cover the following month of Nov 1st - Nov 30th.

1st monthly billing

Oct 28th, the client is charged the full amount

to cover between

Nov 1st - Nov 30th.

Nov 15th, the client is charged the full amount

to cover between

Dec 1st - Dec 31st.

Next monthly billing

Nov 28rd, the client charged the full amount

to cover between

Dec 1st - Dec 30th.

Dec 15th, the client charged the full amount

to cover between

Jan 1st - Jan 31st.

* Last updated in November 2024

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