Pricing & plans 201: Advanced pricing models
Master advanced subscription billing with Recurly. Learn to configure hybrid pricing structures using the Purchases API and manage prepaid account balances for upfront B2B payments.
Acquire · Pricing & Plans 201
Advanced pricing models
Two distinct models for pricing complexity beyond the standard subscription: hybrid pricing combines multiple charge types on a single invoice, while prepaid account balance lets customers pay upfront and draw down over time. They solve different problems — don't conflate them.
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Advanced pricing models
Hybrid pricing
Hybrid pricing lets you combine multiple pricing models — recurring, usage-based, quantity-based, and one-time — within a single purchase transaction. The result is one invoice that reflects a mixed charge structure, rather than separate invoices for each component.
Hybrid pricing is available on all Recurly plans.
One invoice, multiple charge types
A SaaS platform might charge a fixed monthly base fee, a per-seat quantity charge, and a usage fee for API calls — all on the same invoice, collected in a single gateway transaction. A media business might bundle a recurring subscription with a one-time setup fee at signup.
Hybrid pricing doesn't require separate plans for each charge type. You build the combination using a plan with add-ons and adjustments — the API's purchase endpoint handles collecting them together.
- Supported combinations: fixed recurring + usage, fixed recurring + quantity-based, fixed recurring + one-time charges, or any mix of these
- Single gateway transaction: all components are collected together — if the transaction fails, the purchase is rolled back entirely
- API required: hybrid checkout uses the Recurly Purchases API endpoint; it is not configurable via the admin UI alone
The most common hybrid architecture is a base recurring subscription plus one or more usage-based add-ons. If usage billing is new to your account, complete that setup first — the usage add-on configuration on the plan is the same whether you're billing usage alone or as part of a hybrid structure.
Prepaid account balance
Prepaid account balance is a separate feature from hybrid pricing. Where hybrid pricing combines charge types on an invoice, prepaid balance changes how a customer pays — they fund an account balance upfront, and future subscription and one-time purchase invoices draw against that balance until it's depleted. Revenue recognition for account balances must be managed by you, the merchant.
Pay upfront, draw down over time
A customer pays a lump sum — say $500 — which is credited to their Recurly account balance. Their monthly subscription invoices are automatically applied against that balance. When the balance is depleted, invoices revert to their normal collection method.
This works well for annual prepay deals, commitment-based pricing where customers receive a discount for paying upfront, or B2B scenarios where procurement prefers to fund an account rather than approve recurring transactions.
- Prerequisites: Available on all plans. Credit Invoices and Only Bill What Changed must be enabled on your site — contact Recurly Support if these are not active
- Tax treatment: the prepaid charge itself is tax-exempt; taxes are calculated and applied when actual subscription invoices are settled against the balance
- Balance visibility: the account balance is visible to subscribers in the Hosted Account Management page alongside their active subscriptions and invoices
A customer can have a prepaid balance and also be on a hybrid-priced plan — their invoices (which may include multiple charge types) are simply settled against the balance. But these features serve different purposes: hybrid pricing structures what is charged, prepaid balance structures how it is paid. Configure them independently based on your use case.
Which model fits your use case?
Designing a complex pricing architecture?
Hybrid pricing and prepaid balance both involve API setup and coordination across teams. Bring your design questions to Global Office Hours — our CSMs can help you evaluate which model fits your use case before your engineering team starts the implementation.
Register for Office Hours →