Understanding pro-rata billing
Daisy Pro Rata Billing Explained 2019 from Daisy Comms on Vimeo.
If you have recently signed up to a new service with Daisy, or resigned with us on a new package, you might see some unexpected charges on your first bill. This is due to something called pro-rata billing.
Your first bill with Daisy will include your agreed monthly charge, which is billed a month in advance. Along with this, you will also be billed for a partial month, otherwise known as a pro-rata fee. The pro-rata fee covers the period from when the service was first activated, through to the start of the billing cycle.
For example, Amy takes out a new £30 monthly mobile tariff with Daisy on the 19 June. Rather than be billed for the whole month of June, Amy will only be charged for the 12 days her service was active before her billing cycle end-date on the 30th June.
In total, Amy can expect to see pro-rata charges of £12 on her first bill, along with her £30 monthly charge, as services are charged one month in advance.
On your invoice, this will appear as: ‘1 month + 1 part month’.
Pro-Rata Usage
Along with the billing, mobile usage is also pro-rata when you take out a new connection with us.
As an example, Amy’s new connection includes 300 minutes and 300 texts, however, because the connection is only live for 12 days in June, she is only entitled to 12 days’ worth of usage on her calls and texts:
- 600 (minutes and texts) divided by 30 (days in in the month of June) equals 20 minutes and texts per day.
- 20 (minutes and texts per day of that month) multiplied by 12 (number of days Amy will be active in the bill cycle) equals 240.
- This means Amy’s pro rata allowance would be 240 minutes and 240 texts to use during the month of June.
Similarly, for Amy’s data allowance:
- 30 (GB data Amy is allowed) divided by 30 (days in the month of June) equals 1.
- 1 (GB of data per day of that month) multiplied by 12 (number of days Amy will be active in the bill cycle) equals 12.
- Therefore Amy’s pro-rata data allowance for the month of June would be 12GB.
Therefore, the allowance available for the 12 days Amy is active in June is 240 minutes, 240 texts and 12GB of data. Her full allowance will be available at the start of her next bill cycle on the 1st July.