Renewals, Pricing and Billing

Auto-Renewal Clause An auto-renewal clause makes a subscription start a new term on its own when the current one ends, unless you cancel before a set deadline. The new term often comes at the vendor's current price, not the price you paid. Billing Dispute Window A billing dispute window is the time you have to challenge a charge before the vendor treats the invoice as accepted. Some contracts set it in days; others set no window, and then payment deadlines and general claim limits decide how long you have. Cancellation Policy A cancellation policy sets out how and when you can stop a SaaS subscription, how much notice you must give, through which channel, and what you still owe or lose afterward, such as unused fees and your data. Co-Terming Co-terming lines up the end dates of several subscriptions or add-ons so they all renew on the same day, often with prorated charges for anything added mid-term. CPI Price Increase A CPI price increase raises your fee in line with inflation, measured by the Consumer Price Index. Some contracts add extra points on top, such as CPI plus 3%. Downgrade Restrictions A downgrade restriction says you cannot move to a cheaper plan or reduce seats until your current term ends, so you keep paying for the full amount you bought until renewal. Evergreen Clause An evergreen clause keeps a contract running with no fixed end date, renewing period after period until one side gives notice to stop. It is often used loosely to mean any contract that renews on its own. Fair Use Policy A fair use policy is a set of rules that limits how much of a service you can use, even on a plan sold as unlimited. It lets the vendor slow you down, charge more or suspend you if it decides your use is excessive. Forced Plan Migration A forced plan migration is when a vendor moves existing customers off their current plan onto a new one. The new plan can cost more, include less or count usage differently, so it can work as a price increase without a new list price. Free Trial Auto-Conversion Free trial auto-conversion is when a free trial turns into a paid subscription on its own at the end of the trial, unless you cancel first. The card or billing details you gave at signup are charged automatically. Minimum Commitment A minimum commitment is a promise to spend or use at least a set amount over a period, which you owe even if your real use is lower. Non-Refundable Fees Non-refundable fees are payments a vendor will not give back, even if you stop using the service early. When paired with "non-cancelable," the clause also means you owe the full commitment for the term, whether you use it or not. Notice of Non-Renewal A notice of non-renewal is the message you send a vendor to say you will not renew when your current term ends. Contracts often require it a set number of days before the end date, and missing that deadline can lock you into another term. Overage Charges Overage charges are extra fees you pay when you use more than your plan includes, such as more seats, contacts, API calls or storage. They are often billed at a higher rate than your plan price. Price Change Notice A price change notice is the warning a vendor gives before it charges you a new price. On monthly and self-serve plans, it is often the only protection you get, since the plan can renew at the new price within weeks. Price Escalation Clause A price escalation clause builds a set yearly increase into the contract, as a fixed percentage or tied to an index like CPI. Renewal Price Cap A renewal price cap limits how much a vendor can raise your price at each renewal, ideally written into your signed order form. Renewal Price Increase (Uplift) A renewal price increase, or uplift, is the higher price a vendor charges when your subscription renews. It can be a fixed percentage, an inflation-based increase, or a jump to the vendor's current list price. SSO Tax The SSO tax is the extra price you pay when a vendor offers single sign-on (one company login for many apps) only on its more expensive plans. You pay for the higher tier to get a basic security control. True-Up A true-up is a bill at the end of a period that settles the gap between what you paid for and what you actually used, such as extra seats you added during the year. Usage-Based Pricing Usage-based pricing means you pay for how much you use, such as API calls, requests, messages or compute time, instead of a flat fee per seat. Your bill moves with your usage, so it can be hard to predict.