Usage-based pricing (alpha)
Loops supports customers that are billing based on usage. With usage-based pricing models, you charge your customers based on how much of your service they use during the billing cycle. You must also record and report usage to Chargebee via API not to Loop.
Stripe has several types of usage-based pricing and Loop supports each type in various capacities. If you would like to use this feature, please reach out directly to Loop to talk about the best way to implement it.
This functionality is in alpha, thus there are a few important considerations to note.
| Usage-based pricing models | Loop checkout page | Loop checkout |
|---|---|---|
Per unit | Amount field shows price of 1 unit. | |
Tiered | Amount shown as "Price Varies" | |
Volume | Amount shown as "Price Varies" | |
Stairstep | Amount shown as "Price Varies" |
1. Cart display
For per unit pricing, the cart will show the per unit amount
For per tier, the cart will only show "price varies".
You can add a price description within Loop to add context to the cart. This can be done by clicking "manage" on the product on the Subscriptions page with in the Loop Company Dashboard.
There may also be issues with the display of the due date in the cart if you are billing in arrears. Thus, if you want to avoid any confusion, you can simply hide the cart.
2. Authorization suggestion
Loop will suggest an authorization as defined below. You may want to pass into the URL a different suggested default authorization.
For per unit, the suggested approval will be for 12*per unit price or 12*the per package price.
For per tier, by default Loop suggests $500.
Steps:
Once you've created a Plan in Chargebee, you can then set the price for each frequency (Daily, Weekly, Monthly, Yearly). Click "Set price" within the Plan, and then update the pricing model field to usage-based pricing model you desire.
The base plan with its frequency and per unit price is brought into Loop as a “subscription” item, and we generate a checkout link that you can send directly to a customer or can embed on your site.
Loop's checkout page and widget do not currently support entering a quantity. This means that you will need to collect a quantity amount or ingest usage data outside of the Loop checkout. Once you've collected this information, you can pass the correct amount to be billed as described here.
Generate a subscription for the customer in Chargebee that accounts for the usage.
Pass the subscription ID to the Loop checkout page or widget. As noted in other pages, we recommend hiding the cart on the checkout page at this time.
Customer provides payment authorization via the checkout page.
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