Overview
Since usage-based charges can be 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
To create a wallet for one of your customers through the user interface:
- Access the “Customers” section via the side menu;
- Select a customer from the list;
- Open the “Wallets” and click “Add a wallet & credits” on the right;
- Choose a name for the wallet (optional);
- Set the credit value (e.g. 1 credit = $5);
- Enter the number of credits to be purchased and/or granted for free;
- Define transaction metadata (optional & available only via API);
- Determine whether the wallet transaction generates an invoice after a top-up or only following a successful payment;
- Set the expiration date (optional); and
- Click “Add wallet & credits” to confirm.
If the currency of the customer is already defined, the currency of the wallet must be the same.
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.
Real time wallet balance
PREMIUM FEATURE ✨
This feature is only available to users with a premium license. Please contact us to get access to Lago Cloud and Lago Self-Hosted Premium.
Keep track of your wallet’s real-time balance. Lago provides two types of balances for your wallet:
- Balance: invoiced balance, which reflects the remaining prepaid credits in your wallet. It updates each time an invoice is finalized for the customer.
- Ongoing Balance: balance accounted for current usage, including taxes, offering a real-time estimate of your balance’s consumption. It refreshes every 5 minutes or upon the finalization of an invoice for the customer.
Application scope
Prepaid credits are deducted from the subtotal of the next invoice(s), after tax.
Invoicing after successful payment option
When enabled, this option delays issuing an invoice for a wallet top-up until a successful payment is made. If disabled, the invoice is issued immediately upon the wallet top-up, regardless of the payment status. This setting applies to all transactions for the wallet, but can be overridden for individual transactions or recurring rules.
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:
- Open the “Wallets” tab and click “Edit wallet” on the right;
- Select “Edit information”;
- Modify the expiration date; and
- Click “Edit information” to confirm.
The expiration date displayed in the app is based on the organization’s timezone.
You also have the ability to terminate a wallet manually, before its expiration date:
- Open the “Wallets” tab and click “Edit wallet” on the right;
- Select “Terminate wallet”; and
- Click again to confirm.
Terminating a wallet will instantly void all remaining credits. This action cannot be undone.
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