Upgrading and downgrading

A common billing scenario is to either upgrade or downgrade a merchant's subscription during the billing period. To do this with Shopify, you can create a new recurring application charge and prompt the merchant to accept it. This guide covers the details of how upgrades and downgrades work on the Shopify platform, so that you can understand the impact to your monthly billing.

Overview of upgrades and downgrades

Each shop can have only one active recurring application charge per app. If you activate a new recurring application charge for a shop that already has a recurring application charge in place, then the existing recurring application charge will be canceled and replaced by the new charge.

When a merchant upgrades their plan by moving from a less expensive charge to a more expensive charge, the charge is prorated based on the difference in price and the number of days remaining in the billing cycle.

For example, a merchant begins a 30-day billing cycle on a $5.00 plan, and then upgrades to a $15.00 plan on day 15 of the billing cycle. The merchant would be charged $5.00 + ($15.00 - $5.00) * (15/30) = $10.00 USD.

When a merchant downgrades their plan by moving from a more expensive charge to a less expensive charge, the merchant is automatically offered an application credit based on the difference in price and the number of days remaining in the billing cycle. This application credit can be used towards any future application purchase on Shopify.

For example, a merchant begins a 30-day billing cycle on a $20.00 plan, and then downgrades to a $10.00 plan on day 15 of the billing cycle. The merchant would be offered an application credit for ($20.00 - $10.00) * (15/30) = $5.00 USD. The partner payout will automatically be adjusted based on the issued credit and the partner revenue share.

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