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How Prorated Billing Works

Understand how profile adjustments mid-cycle affect your invoice through automated unused time credits, remaining time charges, and grouped line items

What is Prorated Billing?

Prorated billing ensures that you only pay for what you actually use. When you add or remove digital business card profiles mid-cycle, our system calculates the exact difference down to the day so you never pay twice for the same period.

How to Read Your Invoice

When you change your profile count, your next invoice will show adjustment line items using two standardized billing terms:

  1. Unused time (Credit):
    A credit for the remaining days of your previous seat count that you paid for in advance but will not use. This appears as a negative amount.
  2. Remaining time (Charge):
    A charge for the remaining days of your new seat count for the rest of the current billing cycle.

Example: Adding a Profile Mid-Month

Our Business Plan costs €1.99 per profile/month.

Imagine your monthly billing cycle runs from Day 1 to Day 30:

  • Day 1 (Month 1): You pay €39.80 for 20 profiles.
  • Day 15 (Mid-Month): You add 1 profile (total: 21 profiles). No immediate invoice is issued at this moment.
  • Day 1 (Month 2 – Next Invoice): Your next invoice is generated and combines the prorated adjustments from Month 1 with the regular payment for Month 2:
    • Unused time (20 Profiles): -€19.90 credit for the 15 unused days in Month 1.
    • Remaining time (21 Profiles): +€20.90 charge for the 15 remaining days in Month 1.
    • Prorated Net Difference: +€1.00 for the extra profile during Month 1.
    • Regular Renewal (21 Profiles): €41.79 (21 × €1.99) for the upcoming Month 2.
    • Total Due on Day 1 (Month 2): €42.79 (€41.79 regular renewal + €1.00 prorated difference).

Multiple Profile Updates (10-Minute Consolidation Buffer)

To keep your future invoices clean and easy to read, our system uses a 10-minute consolidation window.

All profile additions or removals made within 10 minutes are bundled into a single pair of Unused time and Remaining time line items on your next invoice, rather than generating separate entries for every individual click.

Key Takeaways

  • Fair & transparent: Unused prepaid days are automatically credited back.
  • Automatic calculation: No manual math required—adjustments apply instantly upon changing your profile count.
  • Clean line items: Changes within 10 minutes are grouped into one credit/charge pair on your next billing statement.

Still Have Questions About Your Invoice?

If you need help understanding a specific line item on your bill, please reach out to our support team at support@baningo.com with your invoice number.