Usage based billing is not a new concept, we use it to pay our electricity, water and more recently our phone and internet charges. The normal practice is to charge a monthly minimum and charge the additional fee based on the usage. In other words is also called metered billing.
Let us take an example,
A website hosting company that charges its customers a monthly minimum and the additional charge is based on the number of GB that you use. With ChargeBee you don’t have to worry about keeping track of which of your customer is getting billed when, you can just configure webhooks to remind you when to charge your customers.
To configure metered billing or usage based subscription billing for your business with ChargeBee:
Goto Settings > Site Info > enable Notify and wait to close invoices
And Update Site Info.
How exactly does it work?
When a customer need to be charged for the next billing cycle or when they have upgraded or downgraded their pricing plan. An invoice in created with the monthly minimum and is set to the pending state.
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