Usage-based billing FAQs

Answers to common questions about configuring and running usage-based billing (UBB) in Chargebee — metered features, metered addons, entitlements, and how usage limits behave when you change them.

Can you create a metered feature before sending usage events to Chargebee?

It depends on the environment.

• Live site: No. You must first send sample usage events that include the required attributes. Chargebee validates the usage data structure from those events, and you then create a metered feature based on the validated attributes.
• Test site: Yes. You do not need to send sample usage events first. You can define the metering attributes directly while creating the metered feature.

What is a metered addon and how does it work?

A metered addon is a pricing component that monetizes the aggregated usage recorded against a metered feature. Chargebee uses the addon's pricing configuration to rate the usage and generate charges. How much usage it charges for depends on your pricing model.

Hybrid pricing model

In a hybrid model, a plan includes a defined usage allowance and the addon charges only for usage beyond it:

• The plan includes a defined usage limit for a metered feature.
• Usage beyond the included limit is treated as overage.
• A metered addon linked to the same metered feature rates and charges for the overage.

Chargebee applies the addon's pricing to the excess usage only and generates charges for that overage.

Pure pay-as-you-go (PAYG) model

In a pure PAYG model, the plan includes no usage and the addon charges for everything recorded:

• The plan does not include any usage.
• The metered addon rates all recorded usage based on its pricing configuration.
• Chargebee generates charges for the entire usage quantity.

How do entitlements work with usage-based billing?

In usage-based billing, entitlements define the included limit of a metered feature that a customer receives through a plan or addon.

When you link a metered feature to a plan, you specify the included usage limit. Usage beyond this limit is treated as overage, which you can monetize with a metered addon.

Unlike standard feature entitlements, metered feature entitlements directly affect invoicing. By default, metered addons have unlimited entitlements and are used to rate overage usage.

Can you edit the entitlements of a plan or addon after linking a metered feature?

Yes. You can update entitlements at any time, but the update follows a grandfathering model by default.

When you update included usage limits or entitlements:

• The changes apply only to new subscriptions.
• Existing subscriptions keep their previously defined entitlements.

Apply updated entitlements to existing subscriptions

To apply the new entitlements to existing subscriptions as well as new ones:

1. Go to Configure Chargebee > Billing > Entitlements.
2. Click Perform NG entitlement update.
3. Select the metered features and item price, then define the updates. Chargebee applies these updates to all subscriptions — existing and new.

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