How does prepayment work?
Applies to: -
When you sign up, you'll be billed for the current partial month, with that month counting as the first month of any selected prepayment term. So, if you sign up for 6 months on the 15th of January, your 6 months ends on the last day of June.
We bill on the first of every month. If you've signed up for a prepaid term longer than one month, we'll automatically renew your prepaid term on the first of the month following its conclusion. For example, if you signed up for a 6 month prepayment term on January 15th, your next billing date would be July 1st.
Add-ons selected during the term of your prepayment are automatically invoiced for the remainder of your term at the advertised monthly rate. Add-on fees are not discounted based on prepayment term. So, if you add a $1/month add-on halfway through your 6 month term, we'll bill you $3.
We calculate whether any refund is due by multiplying the number of completed months by the regular monthly rate, and subtracting that from the amount paid for the current term. In other words, if the prepaid term is not completed, prepayment discounts are ignored when calculating refunds.
If subtracting the amount actually paid from the non-discounted monthly rate results in a negative number, you have underpaid. Your account will be closed, no refund is provided, and no balance is due.
If it results in a positive refund, and you have other accounts with us, we'll apply that refund to your account balance.
Here are two examples based on early cancellation of a 6 month Yep prepayment term. In both cases, the amount orginally paid for the 6 month term paid is $71.70, a 20% discount off the regular monthly rate.
Example #1: Cancellation after 2 months.
2 Months x non-discounted rate of $14.95 = $29.90
$71.70 - 29.90 = $41.80 credit/refund due.
Example #2: Cancellation after 5 months.
5 Months x non-discounted rate of $14.95 = $74.75
$71.70 - 74.75 = -3.05, and so no refund or credit is due.
If this is your last remaining Modwest hosting plan in your account, and you have no other accounts with us, we will attempt to apply any refund to your existing credit card on file.
If that is not feasible, and we need to send you a check, we charge a $30 processing fee. If the refund due is less than $30, no refund will be given. Otherwise, we deduct the $30 fee from the refund, and send you a check for the remainder in the mail. Using example #1 above, there would be a refund check in the amount of $11.80 after the processing fee is deducted.
If you wish to switch prepayment terms, such as from 6 months to 12, or 24 months to 6 months, we will simply issue a credit for the amount of the prepaid term being abandoned, and an invoice for the prepaid term being adopted.
2147/0%Last update: 2010-03-28 09:51
Author: John Masterson
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