Advanced Usage Billing: Prepaid with Drawdown

Picture yourself at your favourite coffee shop, Bean & Brew. You come by every morning for your usual cappuccino, and occasionally you get an extra cold brew and a muffin or two in the afternoon. Interestingly, Bean & Brew has a new idea of offering a Coffee Pass. You can pay $50 in advance for 25 drinks. Each time you purchase a coffee, the system automatically deducts one drink from your prepaid balance. The goal is to have no wait time at the counter. 

Some weeks, you go there every day. You might skip a few mornings at other times. No matter what, you've already paid in full, and you're just taking money out of your balance/credit as you go.

You can immediately add money to your balance if it gets low or runs out. If you have extra drinks at the end of the month, you can even roll them over to the next month. The payment process seems straightforward and clear while giving you full control.

That's the simplest way to explain Prepaid with Drawdown.

The New Reality 

Prepaid with Drawdown is quietly gaining ground because people need it in today's world. Businesses that offer AI, machine learning, and cloud services have a unique problem as they slowly move into consumption-based billing. They can't predict how their services will be used. A customer might make a few API requests one week, and the next week, they might process millions of data points or hours of video.

Traditional monthly billing is difficult to maintain. Customers often receive bills they weren't expecting, and businesses have to wait longer for money and take on more credit risk.

That's when Prepaid with Drawdown comes into play.

Customers pay in advance for a set number of credits or usage units. The system automatically takes credits from the prepaid balance every time they use the service, whether it's transcription minutes or an API call. Customers can always see what's left, add more when they need to, and, depending on the provider's policy, roll over unused credits.

It's a model that combines predictability and flexibility. It lets customers control costs while businesses keep a steady flow of cash.

Prepaid with Drawdown in Zoho Billing 

Zoho Billing has built-in support for Prepaid with Drawdown billing, which makes it easy for businesses to switch to this new model quickly and easily. This prepaid drawdown will change the game for setting up fair and real-time cash flow if you work in AI services, SaaS, cloud computing, or any other business model that relies on consumption.

This is how it works:

• Create prepaid plan or add-on: Define prepaid products so that customers pay for usage credits in advance.

• Drawdown Addon: Link usage lets services automatically take credits out of prepaid balances.

• Real-time usage tracking: Track usage through Zoho's API or admin console and see the balance change right away.

• Manage Overage and Rollover: Set up how overage usage is billed and how unused credit can be rolled over.

• Top-Up and Overrides: Let customers add credits in the middle of a billing cycle or change the number of credits when they sign up for a subscription.

• Statement and Invoicing: Statement shows the number of credits/units consumed, and it can be invoiced instantly or with the upcoming cycle along with overage charges.

Scenario:

Let's say a cloud storage service offers a safe place for startups and content creators to store and back up their data.

The service provider offers a Prepaid Storage Plan because file uploads and downloads can vary a lot from month to month. Every customer pays in advance for a certain amount of data credits, like 5TB. Zoho Billing keeps track of how much they use every time they upload or download files and takes the same amount out of their prepaid balance.

The service provider also offers a Compression Service, where each GB of compressed data users receive 0.5 GB worth of credit.

Anna subscribes to the prepaid storage plan.

• She consumes 800 GB of data on the first day.

• Zoho Billing takes 800 GB off their prepaid balance right away, leaving them with 4200 GB.

• Anna consumes 100 GB of compressed data, which Zoho Billing seamlessly handles through a drawdown rate and reduces the credit by 50 GB.

• Again, on day 10, another 1000 GB was used, leaving Anna with a balance of 3150 GB in credit at the end of the month.

When usage tracking is connected to Zoho Billing in real time using APIs, all of this happens in real time.

Suppose, the balance credit reaches zero, Zoho Billing automatically starts tracking any extra usage as overage. This extra usage will be charged at standard rates on the next invoice or right away if the business chooses to "Charge Now." Also, The service provider rolls over the credits to the next billing cycle to make it flexible and fair. 

Note: The prepaid with Drawdown billing model is currently in early access. Reach out to support@zohobilling.com to enable it for your business. Then, go through our Prepaid with Drawdown in Zoho Billing help document to configure it in your organization.  

 Key Takeaways  

For Customers	For Business
Pay in advance to avoid surprise bills or missing payments.	Getting paid before services are used will improve cash flow.
Keep an eye on the credits you use and your remaining balance right away.	Keep unpaid bills and late payments to a minimum.
Buy more units whenever you need them to handle a spike in use.	Track how people use your service in real time to optimize service delivery.
Unused credits can be carried over when policies allow them, so there is no waste.	Overage can be tracked and monetized easily without service interruption.

 

I am confident that the next time you use your coffee pass at Bean & Brew, or any other prepaid service, you will realize it is more than just a convenience. It's a small, everyday reflection of how many big data-driven companies are changing how we pay for technology.

The Prepaid with Drawdown model has scope in every business we encounter. We will provide additional use cases in the comments to make it easier for companies to adopt this model logically. 

• Topic Participants

• Hari | Zoho Billing

  

• Sticky Posts

• Community Learning Series | Digest #5 — September 2020

  Dear customers, We're happy to bring you the September edition of our #CommunityDigest! Keep track of your subscription KPIs right from your smartphone: Last month, we enhanced our Android mobile app to help our customers get daily updates on their business health. We got to know from a lot of customers that this has made their job much more easier because they no longer have to keep a reminder to manually check on the previous day's revenue or activations. If you have not downloaded it yet, here's

• Community Learning Series | Digest #4 - August 2020

  Dear customers, We hope you're staying safe and healthy. I'm happy to bring you the fourth edition of our #CommunityDigest with some brand-new updates from us. 1. Daily Business Updates (for Android users) The Zoho Subscriptions Android app has got a cool new update: You can now get a push notification to your smartphone that lets you know how many activations and cancellations have taken place, and what's the net revenue for the previous day. The best part is, you can tell the app when exactly you

• Community Learning Series | Digest #3 - July 2020

  Dear customers, We hope you're staying safe and healthy. We're glad to bring you the July edition of our #CommunityDigest. New community members can view our previous newsletters here. This time, we have two major updates and three interesting topics for you: 1. Zoho Subscriptions Developer Community Since the inception of Zoho Subscriptions, our team believed that the recurring billing platform we provide should be able to offer an extensive API library that empowers businesses to automate most

• Introducing: Community Learning Series | Digest #1 - May 2020

  Dear customers, We hope you are staying safe and healthy. Helping businesses manage their customer subscriptions more efficiently has always been, and always will be, our goal at Zoho Subscriptions. We strongly believe this is possible if we grow together as a community and share what we know with each other. To nurture this shared learning experience, here is our brand-new Community Learning Series! ​ Welcome to the first edition of our digest! Each edition of our community digest includes guides

• Recent Topics

• Make panel configuration interface wider

  Hi there, The same way you changed the custom function editor's interface wider, it would be nice to be able to edit panels in pages using the full width of the screen rather than the currently max-width: 1368px. Is there a reason for having the configuration panel not taking the full width? Its impossible at this width to edit panels that have a lot of elements. Please change it to 100% so we can better edit the layouts. Thanks! B.

• Tip 7: How to fetch data from another application?

  Hi everyone, Following our Zoho Creator - Tips and Tricks series every fortnight, we are back today with a tip based on one of the most popular questions asked in our forum. This tip would help you fetch data from another application(App B) and use it

• The Social Wall: May 2025

  Hey everyone, We're excited to share some powerful updates for the month of May! Let's take a look! Reply to your Instagram and Facebook comments privately through direct messages Are you tired of cluttered comment threads or exposing customer queries

• Sub-Form Fields as Filters for Reports

  Hi, I would like to use the Sub-Form Fields as Filters in Reports just like we do for Main Page Fields. Thanks Dan

• Zoho CRM Formula - Current Time minus Date/Time field

  Hello, I am trying to prevent duplicate emails going to clients when more than 1 deal is being updated. To do this, I would like to create a formula to identify if a date/time field is >= 2 hours ago. Can someone please help me write this formula? Example:

• Per Level Approval for admins

  We need Process admins like Zoho CRM in Zoho Books for per stage approval Currently in books, admins only have the option for Final Approval But for example, in cases like when an employee is on leave, we can't just approval one level we only have option

• Billing Management: #7 Usage Billing in Telecom & Internet Service Provider

  Telecom and Internet Service Providers operate in markets where usage varies drastically from one customer to another. While flexible, usage-based models align revenue directly with consumption, they also introduce operational challenges like real-time

• Zoho Sprints - Q3 updates for 2025

  The updates for the third quarter of 2025 are out. A few significant features and enhancements have been rolled out to improve user experience and product capabilities. The following are the updates: Manage tags and cluster tags Record and maintain project

• Kaizen #208 - Answering your Questions | Functions, AI and Extensions

  Hello Developers! Welcome back to a fresh week of Kaizen! We are grateful for your active participation in sharing feedback and queries for our 200th milestone. This week, we will answer the queries related to Functions and Extensions in Zoho CRM. 1.

• Zoho CRM still doesn't let you manage timezones (yearly reminder)

  This is something I have asked repeatedly. I'll ask once again. Suppose that you work in France. Next month you have a trip to Guatemala. You call a contact there, close a meeting, record that meeting in CRM. On the phone, your contact said: "meet me

• Creating Restaurant Inventory Management on Zoho

  Hi,  We run a small cloud kitchen and are interested to use Zoho for Inventory and Composite Item tracking for our food served and supplied procured to make food items.  Our model is basically like subway where the customer can choose breads, veggies,

• To Zoho customers and partners: how do you use Linked Workspaces?

  Hello, I'm exploring how we can set up and use Linked Workspaces and would like to hear from customers and partners about your use cases and experience with them. I have a Zoho ticket open, because my workspace creation fails. In the meantime, how is

• Zoho Forms to Zoho CRM : First/Last Name to just Name ?

  When integrating a Zoho Form into the Accounts menu of the CRM I'm having trouble with how names are formatted ; In Forms the data is available as First Name or Last Name In the CRM there is only one field called Name How can I ensure that "John" "Smith"

• This festive season, offer discounts with coupon code support in Stripe Checkout

  Hello form builders! It’s the festive season, the perfect time to spread joy and great deals! Now, with Zoho Forms’ latest enhancement for Stripe Checkout, you can do exactly that with coupon codes! Your payment forms integrated with Stripe Checkout can

• Cómo creo una factura negativa o de abono?

  NEcesito anular una factura y crear una nueva igual pero en negativo. El sistema no me lo permite

• Power of Automation::Streamline log hours to work hours upon task completion.

  Hello Everyone, A Custom Function is a user-written set of code to achieve a specific requirement. Set the required conditions needed as to when to trigger using the Workflow rules (be it Tasks / Project) and associate the custom function to it. Requirement:-

• Is CRM On Premise available

  Hi Zoho team, Can you please let me know that CRM Zoho is available for On Premise as well? Thanks, Devashish

• Last activity time is acting like last modified time

  When i edit the description or any field in the potential, account, contact and lead, the Last Activity Time is being updated like the Modified Time. This is messing all workflows and reports and we are unable to track real last time of activities like

• CRM : Function to add user name to text field

  I have a lookup field in a module that is linked to the CRM users so we can assign a Project Lead to the customer. Sadly Zoho Marketing Automation doesn't sync Lookup fields so I need to extract information from the lookup to text fields: Lookup field

• Zoho CRM - Restrict Login based on work hours

  Hi there, I'm wondering if we can restrict users to login during works - For example the users would be able to login from 8am to 5pm. I have seen the IP address restriction - the only downfall is what if the customer has dynamic IP. thanks Jiri

• Tips and Tricks #46: Customize themes and templates using Show's Master View

  Hi All!  Let's say you want to revamp your presentation and make changes to its visual design. You can do this easily using the Master Slide and its associated layouts. The Master Slide stores information about all the layouts used in the presentation.

• Sheet View in CRM portal

  Hi, When will it be possible for my CRM portal users to edit/add records with Sheet View? George

• What's New in Zoho Invoice | July - September 2025

  Hello everyone! We’re back with the latest updates and enhancements we’ve rolled out in Zoho Invoice from July to September 2025. Here’s what’s new this quarter: Introducing the Singapore Edition in Zoho Invoice Share Invoices through WhatsApp GST 2.0

• Alert: Audio Call Support to be discontinued for Old Live Chat Widget from December 31, 2025

  Action Required: Upgrade to the New SalesIQ Live Chat Widget We're reaching out with an important update regarding the SalesIQ Live Chat Widget that requires your immediate attention. Effective December 31, 2025, audio call functionality will no longer

• multiple contacts for one account

  We currently use Zoho CRM where each Account represents a club or organization, and each Contact represents a manager or owner. However, some of our managers own or manage multiple clubs, and Zoho only allows a contact to be linked to one account at a

• Rich text Merge field - Not using font specified in HTML

  I have a rich text merge field in a writer template which is creating a table. I have chosen to use this method instead of a repeat region because I need to specify specific cell background colours which change every time the document is created. The

• Can't change form's original name in URL

  Hi all, I have been duplicating + editing forms for jobs regarding the same department to maintain formatting + styling. The issue I've not run into is because I've duplicated it from an existing form, the URL doesn't seem to want to update with the new

• ヒートマップ詳細設定について

  はじめまして マーケティング担当の浅田です。 PageSenceのヒートマップ設定について質問です。 単一ページ毎の設定は上手くできるのですが 詳細設定にて、トップページのURLを含ませ全体のヒートマップを計測できないか試したところ お知らせ：データを受信していません。と表示されてしまいます。 トップページURLで始まるページの条件も試しております。 全頁を反映させたいと思い、詳細設定を上手く設定できたらと考えております。 どなたか詳しい方がいらっしゃいましたら、教えて頂けませんでしょうか 宜

• Automatic category assignment

  Hi, I’d like to ask if there is a way to automatically assign an expense category based on the recognized Merchant. What would be the simplest way to set up automatic category assignment? Alternatively, is there an option to first choose the category

• Experience with Zoho Vertical Studio

  I'm considering Zoho Vertical and would love to hear from some devs who've been using it. The Zoho ecosystem is pretty solid, so I assume the experience has been pretty good, but sometimes Zoho has its quirks. Overall, has your experience been positive?

• LinkedIn Chrome Extension

  Hello - I believe it is a known issue that the LinkedIn extension Resume Extractor has stopped working and they are working on potential fixes. Wondering how others users are finding this issue and if there are any better workarounds for this issue? It

• Advance PDF creation from CRM data

  I'm trying to create a PDF export of data in the CRM. My problem is I want a pretty complicated format for the data. I'm trying to export multiple modules worth of data, with nested one-to-many relationships between the modules. Along with that, I want

• Where does this report come from in the Zoho One ecosystems?

  Is this directly from MA, Analytics or ??? ???

• Sub-Form Padding in CSV Export

  Hi, When you use the Sub-Form, and for example you have a Date Field on the Main Page, then Option 1 and Option 2 fields on the Subform, when you export this to CSV the Date column will only have the Date in 1 row, the first row, it would be nice to pad

• More Formula Functions

  Hi, I would like for example to be able to have a Date Field and Formula Fields, and then in the Formula Fields I would like to grab just the Month of the above Date Field or the Week Number of the above Date Field. So more "Functions" than the current

• File upload size limits

  I am designing a contact form in Zoho Creator with File upload facility. I am not sure where and how to set the following properties for the same: Allowed File Types Maximum Size of the Attachment Number of Attachments

• Composite Services and Account Tracking

  I am looking to garner support/request the ability to make composite services. A quick search in the forums brings up multiple requests for this feature. I fail to see why an item is mandatory while services are optional. I also would like to see the

• All operation codes getting Not applied in WO-TT22J1025WOR0471, SR-TT22J1025PRE0423,FOR VIN-W1K6G2AB2SL005130.

  Dear Support Team, Please refer attached screenshot. All operation codes getting not applied in work order. Request you to please check and update ASAP.

• Bank Receipt Catagorization

  Hi, how can I match a bank deposit to multiple customer's invoices ? For e.g. A single person paid to us on behalf of different five customers. I need to keep the separated invoices for each customer

• Exclude Segment from Campaign Recipients

  I've created two Segments in order to separate Non-Marketing Contacts from Marketing Contacts. I'd like to send an Eblast to all Marketing contacts in my lists, but when I go to select Recipients, I have two options: 1. To Choose Lists to Send to; 2.

• Next Page