Can someone explain prorated charges to me?

Mentor

Can someone explain prorated charges to me?

Here's my story.

My billing cycle starts on the 5th. That leaves 28 days in this bill cycle. On the 10th, I dropped from the 1400 minute plan for $64.80 to the 700 minute plan for $48.60. There is a difference of $16.20.

I know that I pay for the month in advance (i.e. I'm paying for February when I pay January's bill). I was told that since I made a change mid-cycle, i would get a credit for the $64.80 that I paid for the 1400 minute plan and pay for the days that I used the 700 minute plan. Another rep then tells me that I have to pay more since I changed my bill mid cycle. She called it proration and it'll increase my bill. I can't see how.

Here's what i get when I calculate it. I pay $11.57 for the 5 days that I used the 1400 minute plan (around $2.31 a day). I then pay $39.92 for the 23 days that I used the 700 minute plan (around $1.74 a day). That is a total of $51.49. Since I already paid for this month in advance ($64.80), don't I get a credit for the difference ($64.80-$51.49=$13.31)?

The rep tells me no but I just don't see how. I didn't use any minutes yet so I can't get charged for that.

My bill is usually $199.55 when I was on the 1400 minute plan. It should now be $183.35 for the 700 minute plan (the $16.20 difference for dropping my minutes). Shouldn't my next bill be $170.04 ($183.35 (monthly charge) minus the $13.31 credit)?

Is my math wrong?

Thanks,
Henry

Message 1 of 5 (58,669 Views)
Scholar

Re: Can someone explain prorated charges to me?

to understand the proration vs advance billing = this.   take the monthly service 80.00 (1400 min plan primary charge) divide by 30 = 2.67 per day times(x) number of days from begining of cycle to the date of rate plan change x 2.67 = ?. best when you change your rate plan is to either make it effective the next bill cycle date or to back date the rate plan reason is this next bill will reflect -80.00 +60.00 (current bill as if you were already billed from last month) then the next months bill of 60.00 =  -80.00 + 60.00 +60.00  primary monthly service charge = 40.00 for that one month next month it will be normally60 +9.99 after the next bill prints... its hard to explain when it prorates in middle of cycle

 


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Message 2 of 5 (58,665 Views)
Master

Re: Can someone explain prorated charges to me?

Here you go:

 

What is a prorated bill?
What is a prorated bill?
Message 3 of 5 (58,660 Views)
Mentor

Re: Can someone explain prorated charges to me?

Thanks for the responses.

 

I'm guessing that the second rep must be wrong then.  From what I've read and what's been explained to me, I should get a credit on my account next month instead of a pro-rated charge.

 

Thanks,

Henry

 

Message 4 of 5 (58,658 Views)
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Master
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Accepted by topic author HPLouis
‎09-30-2015 1:39 AM

Re: Can someone explain prorated charges to me?

[ Edited ]

 


HPLouis wrote:

From what I've read and what's been explained to me, I should get a credit on my account next month instead of a pro-rated charge.


This should answer that specific question

 

 

 

Question:
How will this backdated/mid-cycle rate plan change affect my bill?
Answer:
When you switch to a new rate plan that is backdated or begins in mid-cycle, your bill will be affected. How it is affected depends on whether you are billed in advance or arrears. We have provided links below which will allow you to view an example of how your next bill might look. 
  
Mid-Cycle rate plan change 
  
I am billed in arrears, how will I be billed on a prorated bill for a mid-cycle rate plan change? 
  
I am billed in advance, how will I be billed on a prorated bill for a mid-cycle rate plan change? 

Backdated rate plan change 
  
I am billed in arrears, how will I be billed on a backdated rate plan change?
  
I am billed in advance, how will I be billed on a backdated rate plan change? 


 

 

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