Usage billing - prepayment, credits and commitment
Explore how Zuora Billing supports consumption-based subscription businesses with flexible usage billing options, including prepayment, credits, and dynamic usage charges.
For a consumption-based subscription business, your end customers are either billed in arrears based on their actual usage or pay upfront for discounts, convenience, or budgeting.
With Zuora Billing, you can manage your end customers' consumption of your billable services so that invoices can be generated accordingly to bill your customers. Zuora Billing's usage-based charge models support pass-through fees, peak consumption, and charges based on any attribute. These charge models include Flat Fees, Per Unit, Volume, Tiers, Overage, Tiers with Overage, Pre-Rated Pricing, High Water Mark Pricing, and Multi-Attribute Pricing.
Your end customers can also pay for usage directly attached to their accounts without subscriptions through the Dynamic Usage Charges feature.
Zuora provides the flexibility to also prepay for usage and issue credits (in usage quantity or dollar amount) and manage usage commitments through the following configurations available in the product catalog:
- Prepaid with Drawdown
- Prepaid Cash with Drawdown
- Minimum Commitment