Overage billing

Overage billing charges customers for usage that exceeds the limits included in their subscription plan.

Overage billing applies additional charges when a customer exceeds the usage thresholds defined in their plan. It allows vendors to monetize high-usage customers without forcing them to upgrade immediately.

Example: A SaaS plan includes 10,000 API calls per month. If a customer makes 13,000 calls, they are billed for the 3,000 overage calls at a per-unit rate.

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