Shopify App Billing Downgrade and Upgrade

[sentos]

Hello, I'm developing an app and I received an email from Shopify stating that app plans should be downgradeable or upgradeable.

I am using recurring application charge Graphql admin API and there is a question I want to ask here:

My plans are annual. For example, let's say the user bought an annual license and canceled it after using it for 1 month or wanted to downgrade the plan. In this case, I will cancel the existing plan. Afterwards, if he is going to drop it, I will direct him to get the new plan.
Well, let's say he did this after using my $100 license for 1 month.
- Will I receive the price of 1 month of use as the 1 year price of 100 dollars?
- Or will I not get any payment for canceling the plan?
- Or do I make 100/12 and get 1 month payment of $8.33?

Which of these 3 situations will happen and is the method I follow in reducing the plan logical?
Thanks.

[Liam]

Hi Sentos,

When a merchant downgrades their app plan after one month into an annual subscription, the billing process will ensure that the downgrade takes effect at the end of the current billing cycle. This means that the merchant will continue to have access to the features of the higher-tier plan until the end of that 30 day billing cycle. In terms of charges, the merchant will only be billed for the usage during that first month, and there will be no prorated refunds issued for the remainder of the billing cycle.

Hope this helps!