Billing anchor
How to line charges up with a chosen day of the month
Available on: recurring prices — subscriptions and payment plans, with a fixed price or pay what you want.
What is a billing anchor?
A billing anchor fixes the day of the month every charge falls on, whenever the customer happens to buy.
Use it to bill everyone on the same day, so renewals and reporting line up.
How to set a billing anchor
- Go to Storefront → Checkout pages.
- Open the checkout you want to edit.
- Go to Product → Details.
- Enable Billing anchor.
- Select the day. On a yearly price, select a month as well.
- Click Save.
Proration
Because the anchor shortens the first period, the customer pays only for the days between buying and the anchor date. Every payment after that is the full amount.
The prorated figure is worked out from the moment of checkout rather than in whole days.
Example: A $29 a month subscription with the anchor set to the 1st, bought partway through August, charges $18.32 at checkout. From 1 September it charges $29 on the 1st of each month.
A setup fee is charged in addition to the prorated amount, not instead of it.