New in Chargebee: Explore Reveal and understand your payment performance end-to-end.Try Now
Docschargebee docs
HomeBillingPaymentsRevRecGrowthReveal
Support

Product Updates


  • Release Notes

Getting Started


  • Overview
  • Chargebee Billing Data Centers
  • Object Relationship Model
  • Understanding Sites
  • Chargebee Tech Glossary
  • Articles and FAQ

Implementing Chargebee


  • Implementation Guide
  • Go-live Checklist
  • Articles and FAQ

AI in Chargebee


  • Chargebee Copilot
  • Chargebee Model Context Protocol (MCP) Server

Developer Resources


  • Developer Resources Overview
  • API Explorer
  • Articles and FAQ

Product Catalog


  • Product Catalog Overview
  • Coupons
  • Articles and FAQ

Subscriptions


  • Working with Subscriptions
  • Billing
  • Orders
  • Articles and FAQ

Customers


  • Managing Customers
  • Account Hierarchy
  • Email Notifications
  • Branding
  • Configure Multiple Languages
  • Articles and FAQ

Entitlements


  • Entitlements Overview
  • Features Overview
  • Feature Management
  • Managing Product Entitlements
  • Subscription Entitlements
  • Customer Entitlements
  • Grandfathering Entitlements
  • Articles and FAQ

Usage Based Billing


  • Understanding Usages
  • Setting up Usage Based Billing
  • Usage Alerts
  • Prepaid credits
  • Metered Billing
  • Articles and FAQ

Chargebee CPQ


  • Chargebee CPQ
  • Chargebee CPQ for Salesforce
  • Chargebee CPQ for HubSpot

Invoices, Credit Notes, and Quotes


  • Invoices
  • Credit Notes
  • Quotes [Legacy]
  • Transactions
  • Articles and FAQ

Taxes


  • Overview
  • Configuring Taxes
  • Country-specific Taxes
  • Articles and FAQ

Hosted Capabilities


  • Overview
  • Hosted Checkout
  • Hosted Self-Serve Portal
  • Hosted Pages Features
  • Additional Hosted Pages
  • Payment Components
  • Pricing Table
  • Managing Payments with Chargebee.js
  • Mobile-Optimized Hosted Pages
  • Articles and FAQ

Site Configuration


  • Users & Roles
  • Custom Fields & Metadata
  • Approvals
  • Mandatory Fields
  • File Attachments & Comments
  • Advanced Filter Options
  • Multicurrency Pricing
  • Multi-decimal Support
  • Configuring Reason Codes
  • Events and Webhooks
  • API Keys
  • Time Zone
  • Time Machine
  • Transfer Configurations
  • Articles and FAQ

Multi Business Entity


  • Multi Business Entity Overview
  • Customer Transfer Overview
  • Articles and FAQ

Mobile Subscriptions


  • Overview
  • Omnichannel Subscriptions
  • Omnichannel One-Time Orders
  • Mobile Subscriptions (Legacy)

Reports and Analytics


  • RevenueStory
  • Home Dashboard
  • Frequently Asked Questions
  • FAQs for Classic Reports Sunset
  • Articles and FAQ

Integrations


  • Sales
  • Customer Support and Success
  • Finance
  • Tax
  • eInvoicing
  • Marketing
  • Stitch
  • Collaboration
  • Contract Management
  • Ecommerce Management
  • Articles and FAQ

Data Privacy & Security


  • Two Factor Authentication
  • SAML Single Sign-On
  • System for Cross-Domain Identity Management (SCIM)
  • EU-GDPR
  • Consent Management
  • Personal Data Management
  • Compliance Certificates
  • HIPAA Guidelines
  • PCI Recommendations and Integration Types
  • Articles and FAQ

Data Operations


  • Bulk Operations
  • Migration
  • Articles and FAQ
  1. Billing
  2. Usage Based Billing
  3. Prepaid credits
  1. Billing
  2. Usage Based Billing
  3. Prepaid credits

Prepaid credits for usage-based billing

Prepaid credits help you monetize usage-based features in your product. Instead of charging customers on a fixed subscription alone, you can issue credits that customers spend as they use your platform's features.

This guide walks you through setting up credit units, configuring credit grants on plans, adding overage pricing, and creating subscriptions.

Example use case

Let's consider Acme Business, a generative AI-driven platform for image and video creation. Users produce content across different formats and quality levels using prompts and customizable configurations.

To monetize usage-based features, Acme Business creates AI Credits, a credit unit customers spend each time they generate content. The cost in AI Credits varies by model, resolution, and input type.

ModelResolutionInput typeGeneration typeAI credits
Nano Banana1KPromptImage3
Nano Banana1KPrompt + ImageImage5
Nano Banana Pro4KPrompt + Multi-ImageImage10
GPT Image 1.52KPromptImage6

The steps in this guide follow the Acme Business setup as a worked example.

Before you begin

Understand these key concepts:

  • Credit unit: The named unit of value customers spend (for example, AI Credits or Tokens). You can define up to five credit units per Chargebee Billing site.
  • Credit grant: The quantity of a credit unit allocated to a customer when they subscribe to a plan or addon.
  • Overage: A metered addon that charges customers when they exceed their allocated credit grant.

Step 1: Define a credit unit

A credit unit is the foundation of your prepaid billing setup. It represents the unit of measurement customers spend when they use your product's features.

Create a credit unit

To configure credit units in your Billing site, follow these steps:

  1. Click Settings > Configure Chargebee > Credit Units.
Credit Units page showing the Create a credit unit button
  1. Select Create a credit unit.
  2. Fill in the following fields:
New credit unit modal with fields for External name, Internal name, Credit unit ID, and Allowed negative balance
FieldDescription
External nameThe name customers see in their self-serve portal.
Internal nameThe name used inside Chargebee and when setting up your product catalog.
Credit unit IDA unique identifier used to reference this credit unit in the API.
Allowed negative balanceCustomers without on-demand credit pricing can continue using credits beyond their balance, up to this limit. Leave blank for no negative balance.
  1. Click Create.

Note

You can define up to five credit units on a given Chargebee Billing site.

Edit a credit unit

Update the External name and Internal name of a credit unit at any time.

Edit credit unit modal showing editable External name and Internal name fields, with Credit unit ID greyed out

Changes to a credit unit's name do not affect existing subscriptions. Customers on active subscriptions continue to see the previous name. The updated name applies only to new plans and future configurations.

For example, if you rename "AI Credits" to "Tokens," customers already subscribed will still see "AI Credits." Only newly created plans will display "Tokens."

Archive a credit unit

Archiving a credit unit prevents new grants from being issued or configured for that unit. Existing subscriptions that use the credit unit are not affected and continue to work normally.

Archive AI Credit confirmation dialog listing the effects of archiving

Step 2: Configure a credit grant for a plan

A credit grant defines how many credits a customer receives when they subscribe to a plan, addon, or charge.

Add a credit grant to a plan

To add credit grant to an existing plan in your Billing site, follow these steps:

  1. Click Product Catalog > Plan > select the plan.
  2. Navigate to the plan's item price.
  3. In the Credit Grant section, click Configure Grant.
Plan item price page with the Credit Grant section and Configure Grant button
  1. Set the following:
Configure Credit Grant modal showing credit unit, grant frequency, grant quantity, and rollover fields
SettingDescription
Credit unitThe credit unit to allocate (for example, AI Credits). This cannot be changed after the grant is saved.
Grant quantityThe number of credits allocated per grant period.
Grant frequencyHow often credits are issued. For monthly plans: Daily or Monthly. For yearly plans: Daily, Monthly, or Yearly.
RolloverWhat happens to unused credits at the end of a grant period. See rollover options below.
  1. Click Save.

Note

The grant frequency can be shorter than or equal to the billing frequency, giving you flexibility in how credits are distributed.

Rollover options

Rollover typeBehavior
No rolloverUnused credits expire at the end of the grant period.
Unlimited rolloverUnused credits carry forward indefinitely.
Time-limited rolloverUnused credits carry forward but expire after a defined duration.
Capped rolloverA set percentage of unused credits carry forward, up to a defined maximum.

View and edit grant version history

After a credit grant is configured, track changes over time.

  1. Navigate to the plan's item price.
  2. Go to Credit Grant > Versions.
AI Credits Versions modal showing version details including grant quantity, frequency, rollover eligibility, and creation date

Each version records the grant quantity, frequency, and rollover configuration at the time it was created.

To update a credit grant:

  1. Select the three-dot menu next to the grant.
  2. Select Edit.
  3. Make your changes and select Save.

Edits create a new version. Existing subscriptions are not affected.

Warning

The credit unit assigned to a plan cannot be changed after it is saved.

Step 3: Configure overage pricing

When customers exceed their allocated credit grant, charge them an overage rate using a metered addon.

Create a metered addon for overage

To create a metered addon in your Billing site, follow these steps:

  1. Click Product Catalog > Addons > Create a new addon.
  2. Fill in the addon name and ID.
Create a New addon form with fields for Product Family, External name, Internal name, Description, and Addon ID
  1. Select This is a metered addon billing on-demand usage.
  2. Under How would you want to use this metered addon?, select Bill overage for credit grant.
  3. Under Choose credit unit of the grant, select the credit unit this addon applies to (for example, AI Credits).
Metered addon configuration showing Bill overage for credit grant selected and AI Credits chosen as the credit unit
  1. Save the addon, then open the addon's item price to set the overage price and billing frequency.

Overage billing rules

  • Customers are charged the overage rate only after they exceed their allocated credit grant.
  • Configure overage billing for either a specific entitlement feature or a credit unit grant, not both on the same metered addon.
  • Only one overage model can be applied per metered addon at a time.

Note

Metered addons cannot include a credit grant. To give an addon a credit grant, configure it as a non-metered addon instead.

Step 4: Create a subscription with credit grants

Create a subscription

When a customer subscribes to a plan that has a credit grant configured, credits are automatically provisioned to the subscription.

  1. Go to the customer's record and select Create a subscription.
  2. Select the product family and plan.
  3. The subscription displays the credit grant details, such as the credit quantity and frequency (for example, 16,500 AI Credits/month).
Create a subscription page showing the selected plan with credit grant details and monthly billing amount
  1. Optionally, add recurring addons, one-time charges, or an overage addon.
  2. Select Create.

Override credit grant settings for a specific subscription

Customize the credit grant for an individual subscription without changing the plan-level configuration.

  1. During subscription creation, select the three-dot menu next to the plan.
  2. Select Manage Credit Grants.
Subscription creation page with the three-dot plan menu open, showing the Manage Credit Grants option
  1. Adjust the grant frequency, grant quantity, and rollover behavior as needed.
Add Grant Configuration Overrides modal with fields for pricing unit, grant frequency, grant quantity, and rollover
  1. Click Save.

Overrides apply only to the selected subscription. The original plan-level grant configuration remains unchanged. The credit unit cannot be changed during an override.

Edit a credit grant on an active subscription

Update a credit grant on an active subscription at any time. Changes made mid-cycle take effect from the next billing term.

Warning

Mid-cycle proration is not supported in the current release. This will be addressed in a future update.

Limitations and considerations

  • Define up to five credit units per Chargebee site.
  • The credit unit assigned to a plan or active subscription cannot be changed.
  • Edits to credit grants on active subscriptions take effect at the start of the next billing term.
  • Archiving a credit unit blocks new grants but doesn't affect existing subscriptions.
  • A metered addon cannot include a credit grant. Non-metered addons can.

Was this article helpful?