What is the difference between Non-Prorated Billing and Prorated Billing?

Question: What is the difference between Non-Prorated Billing and Prorated Billing?

Answer: 

 Read the explanation given below to know the difference between the two billing methods: 

  • Non Prorated Billing: When Non Prorated Billing is set, recurring billing is done on the date of signup. This means that if a customer has signed-up a $5/month plan on May 14th then his next billing will be on June 14th. 
  • Prorated Billing: Prorated Billing is a common billing method used in hosting industry. When enabled, billing system will charge a complete month and then first recurring will be prorated. Consider the following example:

    Hosting Plan: $10/month
    Billing Day: 2nd of month
    Signup Date: 15 May

    New account will be charged $10 for 15 May-15 June. On 15 June user will be charged $5 for 15 June-2 July (prorated) and onward billing will be from 2nd to 2nd each month.

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