In this KB
- Payment system in Cloudways
- Issuance of invoices
As you may know, Cloudways charges in arrears. Basically, we invoice you for the services used in any given month at the start of the next month. This is due to the pay-as-you-go nature of our service and the fact that we don’t have a detailed knowledge of your resource usage until we get the report from our cloud infrastructure partners.
To partially offset the abuse risks involved with this model (especially in hosting), on the 15th of each month we charge as funds the total resources used up to that moment. These funds are deposited in your account and will be used to settle your invoice.
So, at a high level, the timeline of our payment process is as follows:
- 15th of every month: An automated charge is made to your credit card of the total resources already used in the month. The amount is added as funds to your account. No invoice is generated. If are paying via PayPal, you will need to upload the necessary funds manually (you will be notified by email).
- Between 1st and the 6th of every month: The invoice for the total resources used in the previous month is generated. The invoice is settled against the existing funds in your account and any remaining amount is charged to your credit card. If you are paying via PayPal, you will have to settle the invoice manually. The precise date the invoice is generated depends on the providers you use (as we get usage reports from them at different dates).
- If you manually upload enough funds to your account, the automated funds processing on the 15th will not be applied and the invoice will be charged from the available funds.