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Overages allow you to charge customers for usage that exceeds their committed subscription limits. This pricing model enables flexibility for customers while encouraging upfront commitments by applying additional fees to excessive usage. Overages charges can apply to:
  1. Usage-based charges that are billed in advance
  2. Entitlements to metered features
  3. Entitlements to recurring credits

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Example use cases

  • AI credits: a plan includes 5,000 credits/month. In a given month the customer’s actual credit consumption was 5,200 credits. The customer will be billed an overage fee of $0.5 for every additional credit, totaling $100 in overage charges.
  • API usage: A plan includes 1,000 API calls/month. In a given month the customer’s actual usage was 1,300 API calls. The customer will be billed an overage fee of $0.01 for every additional call, totaling $3.00 on top of their pre-committed amount.
  • Bandwidth : A plan includes 500 MB/month. In a given month, the customer used 800 MB. They exceeded their allocation by 300 MB and will be billed in 100 MB blocks at $2.00 per block, totaling $6.00 in overage charges.
New credit grants can reduce or eliminate overage before it’s billed: for the “entitlements to recurring credits” case, usage beyond the grant is first tracked as an overdraft rather than billed outright. Any grant that increases the customer’s balance before the overage charge is invoiced — a top-up purchase, a promotional entitlement, or the next recurring grant — automatically settles the overdraft first. For example: a plan grants 1,000 credits and the customer uses 1,200 (200 credits in overdraft). If they receive 200 additional credits from any source before the billing cycle closes, that grant settles the overdraft, so no overage fee is charged for that amount. See Recurring credits for configuring overage charges and top-ups on the same plan.

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