Stripe Subscription Upgrade

Currently, when a user upgrades from the current plan(say monthly) to a higher-priced plan(say annual), a pro-rated refund is made based on the number of unused days for the current plan's billing period and a full price is charged for the annual plan.

With the new changes,when a user upgrades from the current plan(say monthly) to a higher-priced plan(say annual), there will be no refund. Thepro-rated amount for the unused days of the current plan's billing period will be taken as a credit to the upgraded plan and the user will be charged only the delta(new plan price - credit amount).

Examples:

Scenario 1:

If the user is currently a paid subscriber(no free trial) on a monthly plan($9 per month) with the billing cycle of 5th March 2021 to 4th April 2021, and if the user upgrades to annual ($90) on 15th March(10 days into the current billing cycle), the user will be charged $84($90 - prorated credit $6) with the new billing cycle from 15th March 2021- 14th April 2022.

Scenario 2:

If the user is currently a subscriber(in free trial) on a monthly plan($9 per month) with the billing cycle of 5th March 2021 to 4th April 2021, and if the user upgrades to annual ($90) on 15th March(10 days into the current billing cycle), the user will be charged $90($90 - prorated credit $0[as the user was on free trial]) with the new billing cycle from 15th March 2021- 14th April 2022.