Charging customers based on how much of your service they use is a common pricing model for SaaS businesses called usage-based or metered billing. As a business, you provide access to your service and bill your customer based on their usage at the end of the subscription cycle. Companies that use this model often also charge a flat monthly fee. At the end of the cycle, you report the usage to Stripe.
This guide describes the unique actions you need to take in your integration to support usage-based billing, such as:
- Setting up the pricing model and collecting and reporting usage records, two common points of friction for users.
- The simplest, lowest-effort path to implement a usage-based billing integration, preferring no-code options where available. If you need to implement usage-based billing at scale or integrate it with complex systems you can follow the same pattern but use more appropriate tools, like the Stripe API, to implement it.
Learn more about the usage-based pricing model.
Product modeling No code
Create a product to represent your service plan and configure a tiered pricing model that offers progressive, graduated pricing based on usage.
Customer sign-up No code
Use a Payment Link as an out-of-the-box sign-up page and payment form for your customers to subscribe to a recurring product.
Trials No code
Offer customers a trial of your service without accruing usage.
Subscription management No code
Set up the customer portal to let your customers manage their subscriptions.
Cancellations No code
Handle unbilled usage when metered subscriptions end.
Monitor subscription activity Some code
Set up webhook endpoints to listen to event notifications and handle upgrades, downgrades, payment failures, customer updates, and other scenarios.
Report usage Some code
Collect usage records and report them to Stripe.
Learn about usage records and how to collect and report them to Stripe in this guide.
Testing Some code
Test your integration for trial periods, webhook notifications, payment failures, and other common scenarios.