š Overview
If a customer has been charged an amount that differs from what you or they expected, there is usually a straightforward explanation. In most cases, the charge is correct but may look unfamiliar due to how the system calculates payments.
š” The most common reason for an unexpected charge amount is proration.
If a customer started, upgraded, or downgraded a membership partway through a billing cycle, their charge will be adjusted to reflect only the portion of time on each plan. |
š Common Causes of Unexpected Charges
Below are the most common reasons why a charge may differ from the expected amount, along with details to help you understand what may have caused the difference.
Click the arrow to see the most common causes of unexpected charges
Click the arrow to see the most common causes of unexpected charges
š° Prorated Payments
Proration is by far the most common reason a customer sees an unexpected charge.
When a customerās membership starts, changes, or ends partway through a billing cycle, the system automatically adjusts the amount to reflect only the time used.
Proration applies in the following situations:
Mid-cycle sign-up | If a customer starts a membership partway through a billing period, they are only charged for the remaining days in that cycle rather than the full amount |
Upgrade | When a customer moves to a higher-tier membership mid-cycle, the system credits the unused portion of their current plan and charges the remaining time at the new rate. The result is a partial charge that reflects the price difference for the days remaining |
Downgrade | If a customer switches to a lower-tier plan mid-cycle, a credit is applied for the unused time on the higher plan. Depending on your settings, this credit may be applied to a future invoice or the downgrade may be delayed until the end of the current billing period |
Cancellation | If a membership is cancelled before the end of a billing cycle, a prorated credit may be issued for the unused days |
š§ Example:
A customer is on a Ā£30/month membership that bills on the 1st of each month. On the 16th, they upgrade to a Ā£60/month plan. The system calculates:
ā¢ Credit for unused time on old plan (15 days): -Ā£15
ā¢ Charge for remaining time on new plan (15 days): +Ā£30
ā¢ Net charge: Ā£15
On the next billing date, the customer will be charged the full Ā£60.
š How to verify a prorated charge
Navigate to the customerās profile and open their billing history
Locate the invoice for the charge in question and review all line items
Check the date the membership was created or changed against the billing cycle dates
If the membership start date or change date falls partway through a billing cycle, the charge has been prorated
š·ļø Expired Discounts or Promotional Pricing
If a customer was on a promotional rate or had a discount code applied, their charge will revert to the standard price once the promotion expires.
Common scenarios include:
An introductory offer (e.g. āfirst month at 50% offā) has ended and the customer is now being charged the full rate
A time-limited discount code has expired
A referral credit or loyalty discount was only valid for a set number of billing cycles
š How to check for expired discounts
Open the customerās membership details
Check whether a discount or promotion was applied at the time of purchase
Review the terms of the discount to confirm whether it was time-limited
Compare the previous invoice amount against the current one to confirm the difference matches the discount value
ā ļø If a customer contacts you about a sudden price increase, always check whether a promotional rate has expired before making any adjustments.
š§¾ Tax Rate Adjustments
Small fluctuations in a charge amount can sometimes be attributed to changes in the applicable tax rate.
Tax rates are determined based on the customerās location and local tax requirements. These rates can change over time due to updates in local tax legislation. When a rate changes, the amount charged to a customer may increase or decrease slightly even though the base membership price has not changed.
Additionally, if a customer updates their billing address (for example, moving to a different region), the applicable tax rate may differ from what was previously charged.
š How to check tax on an invoice
Open the invoice for the charge in question
Review the tax line item on the invoice to see if tax has been applied or adjusted
Compare the tax amount against previous invoices to identify any changes
š² Membership Price Changes
If the price of a membership plan has been updated, this may affect what a customer is charged at their next billing date. There are two important things to understand about price changes:
š¢ Price changes are not always applied retrospectively.
If you update the price of a membership plan, existing customers on that plan may or may not be affected depending on your system settings. Some configurations lock in the price at the time of purchase, while others apply the new price to all subscribers at the next billing cycle.
š¢ Price changes combined with proration can create confusion.
If a price change takes effect mid-cycle and the customerās charge is also prorated, the resulting amount may look unfamiliar.
š How to investigate
Check the membership settings to confirm the current price
Review the customerās billing history to compare the previous charge with the current one
If the price has changed recently, verify whether the change is set to apply to existing subscribers or only to new sign-ups
š Membership Tier Mismatch
A customer may be assigned to the wrong membership tier, resulting in a charge that does not match the expected amount.
This can happen when:
A customer was manually assigned to the wrong plan during setup
A membership was duplicated or migrated incorrectly
The customer selected the wrong tier when signing up through the customer portal
š How to investigate and correct
Go to the customerās profile and review their active membership
Confirm the membership name and price match what the customer should be on
If incorrect, update the membership to the correct tier
If the customer was overcharged, process a refund for the difference or apply a credit to their account
ā Add-On Fees or Processing Charges
In some cases, additional fees may be included in a charge that the customer or business was not expecting.
These may include:
Joining fees or sign-up fees added to the first payment
Penalty fees such as late-cancellation or no-show fees
š How to check
Review the invoice line items to see if any additional charges were included beyond the base membership fee
Check the membership plan configuration for any one-time fees attached to the first billing cycle
š ļø How To Investigate an Unexpected Charge
If a customer reports being charged the wrong amount, follow these steps to identify the cause.
Navigate to the customerās profile and check their billing history. Locate the invoice for the charge in question and review all line items.
Check for proration | Was the membership started, changed, or cancelled mid-cycle? If so, the charge has likely been prorated |
Check for expired discounts | Was a promotional rate or discount code previously applied that may have expired? |
Check the tax line | Has the tax rate changed or has the customer updated their billing address? |
Verify their membership | Is the customer on the correct plan at the expected price? Do they have more than one membership? |
Check for additional fees | Are there any registration fees, late fees, or add-on charges on the invoice? |
Review the membership plan settings | Has the price of the plan been changed recently? |
š” In most cases, the charge amount can be explained by comparing the invoice date against the membership start or change date. If the dates do not align with the start of a billing cycle, the charge has been prorated.
ā How To Correct an Incorrect Charge
If after investigation you determine that the customer was genuinely charged the wrong amount, you can take the following steps to correct it.
If the customer was overcharged:
Issue a partial or full refund through your payment processor
Alternatively, apply a credit to the customerās account to offset the next billing cycle
If the customer is on the wrong membership tier:
Update the membership to the correct plan
Refund the difference for the current billing period if applicable
If a discount should still be active:
Reapply the discount to the customerās membership
Issue a credit or refund for the amount overcharged on the current invoice
ā ļø Always verify the correction in the customerās billing history after making changes to ensure the adjustment has been applied correctly.
ā Frequently Asked Questions (FAQs)
Find answers to common questions or additional details that may not be covered in the main instructions.
Click the arrow to view common questions
Click the arrow to view common questions
What is proration?
Click the arrow to view the answer
Click the arrow to view the answer
Proration is the process of adjusting a charge to reflect only the portion of a billing period that was used. For example, if a customer signs up for a monthly membership halfway through the month, they will only be charged for the remaining days rather than the full month.
Why is the charge amount different from the membership price?
Click the arrow to view the answer
Click the arrow to view the answer
The most likely reason is that the charge has been prorated. This happens when a membership is started, upgraded, downgraded, or cancelled partway through a billing cycle. Other possible reasons include expired discounts, tax adjustments, or additional fees included on the invoice.
A customer says they were charged more than expected after their first month. Why?
Click the arrow to view the answer
Click the arrow to view the answer
If the customer signed up with a promotional rate or introductory discount, their first billing cycle may have been at a reduced price. Once the promotion expires, the charge reverts to the standard membership price. Check the customerās membership details to confirm whether a discount was applied at the time of sign-up.
How do I know if a charge was prorated?
Click the arrow to view the answer
Click the arrow to view the answer
Compare the date the membership was created or changed against the billing cycle dates. If the membership started or changed partway through a billing period, the charge has been prorated. You can also review the invoice details in the customerās billing history for a breakdown of the charge.
Can I override a prorated charge?
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Click the arrow to view the answer
Proration is calculated automatically by the system. If you need to adjust a charge after it has been processed, you can issue a partial refund or apply a credit to the customerās account. If you want to prevent proration for future changes, check your membership settings to see if proration can be disabled.
A customerās charge changed slightly but their plan hasnāt changed. What happened?
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Click the arrow to view the answer
Small fluctuations are usually caused by changes in the applicable tax rate. Tax rates are based on the customerās location and can change due to updates in local tax legislation. Review the tax line on the invoice to confirm.
What should I do if I canāt determine why the amount is different?
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Click the arrow to view the answer
If you have worked through all the common causes in this guide and the charge still does not make sense, contact our support team through the chat widget on your dashboard. Have the customerās name, the invoice in question, and the expected vs. actual charge amount ready so the team can investigate further.