Skip to main content

Prepaid Credits

Since usage-based charges are calculated at the end of the billing period, you often need to wait to collect payments. With prepaid credits, you can now unlock recurring revenue opportunities for pay-as-you-go pricing models.

Prepaid credits increase predictability as they allow you to collect payments in advance and then monitor the evolution of the balance of your customer's wallets.

Create wallets

caution

The customer must have an active subscription in order to have a wallet.

To create a wallet for one of your customers through the user interface:

  1. Access the "Customers" section via the side menu;
  2. Select a customer from the list;
  3. Open the "Wallets" and click "Add a wallet & credits" on the right;
  4. Choose a name for the wallet (optional);
  5. Set the credit value (e.g. 1 credit = $5);
  6. Enter the number of credits to be purchased and/or granted for free;
  7. Set the expiration date (optional); and
  8. Click "Add wallet & credits" to confirm.

Creation of a wallet via the user interface

Free credits are added to the customer's wallet instantly, while purchased credits are added to the wallet when payment is confirmed (see below).

Each customer can only have one active wallet.

Credit purchases and top-ups

Lago automatically generates an invoice for each purchase and taxes apply. Payment must be made in order for credits to be added to the customer's wallet (i.e. the status of the invoice must be succeeded).

To top up a wallet through the user interface:

  1. Open the "Wallets" tab and click "Edit wallet" on the right;
  2. Select "Top up credit";
  3. Enter the number of credits to be purchased and/or granted for free; and
  4. Click "Top up credit" to confirm.
info

Coupons do not apply to credit purchases and top-ups.

Application scope

Prepaid credits are deducted from the subtotal of the next invoice(s), before tax.

Invoice paid with prepaid credits

info

Prepaid credits do not apply to invoices related to add-ons.

Expiration date and termination

By default, if you don't set an expiration date, prepaid credits are carried over to the next billing period until the wallet balance is zero.

If you define an expiration date, when the date is reached, all remaining credits are automatically voided.

To modify the expiration date of the prepaid credits through the user interface:

  1. Open the "Wallets" tab and click "Edit wallet" on the right;
  2. Select "Edit information";
  3. Modify the expiration date; and
  4. Click "Edit information" to confirm.

You also have the ability to terminate a wallet manually, before its expiration date:

  1. Open the "Wallets" tab and click "Edit wallet" on the right;
  2. Select "Terminate wallet"; and
  3. Click again to confirm.
caution

Terminating a wallet will instantly void all remaining credits. This action cannot be undone.