Definition

Fair billing

Fair billing means a per-seat subscription charges only for the people actually using it, crediting or not billing seats that stay inactive during the period.

Also known as: Fair billing policy

Fair billing is a per-seat pricing promise that you pay for the licences people actually use rather than every licence you once bought. Slack's Fair Billing Policy is the best-known example: it automatically credits your account for members who are deactivated, and only charges for active members, so a seat nobody uses does not quietly keep billing.

Most vendors are not this generous. On a typical per-seat plan an empty or deactivated seat keeps costing money until you remove it at the next renewal, which is why seat waste is worth tracking. When you compare tools, check whether billing is genuinely usage-based, pro-rated on deactivation, or simply fixed for the term - the wording decides whether an unused seat is free or just forgotten.

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Fair billing: paying only for active users · StackTrackr