Shopify App Billing Downgrade and Upgrade

Retired Boards Appdev Billing

Topic summary

Topic: How to handle downgrades/upgrades for annual app plans using Shopify’s Recurring Application Charge (GraphQL Admin API).

Scenario: A developer asks what happens when a merchant on a $100/year plan cancels or downgrades after 1 month. Options considered: full annual charge, no charge, or a 1/12 charge.

Key update: The downgrade takes effect at the end of the current 30‑day billing cycle. The merchant retains higher‑tier features until that cycle ends. Billing applies only for the first month of use, with no prorated refunds for the remainder of that cycle. Practically, the merchant is not charged the full annual amount; they pay for the one month used.

Notes/terms: “Billing cycle” refers to a 30‑day period for charges. The Recurring Application Charge GraphQL Admin API is Shopify’s app billing mechanism for subscriptions.

Status: The billing behavior and timing are clarified. The developer’s implementation approach (cancel current plan, then prompt to select a new plan) is not explicitly confirmed or evaluated. Discussion appears largely resolved regarding charges but not implementation best practices.

Summarized with AI on December 22. AI used: gpt-5.
1

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.

2

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!