> ## Documentation Index
> Fetch the complete documentation index at: https://docs.flexprice.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Prepaid & Promotional credits

> Description of your new file.

Flexprice provides a flexible credit system that allows businesses to configure **prepaid and promotional credits** for customers. These credits can be used to offset recurring charges, usage-based charges, or both, depending on how the credit wallet is configured.

Credits are a powerful tool in pricing and customer retention. They allow businesses to:

* **Offer promotional incentives** → Free trial credits, signup bonuses, or customer loyalty rewards.
* **Enable prepaid usage models** → Let customers buy credits upfront instead of committing to a fixed plan.

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  <img src="https://mintcdn.com/flexprice/vSyUFekaQzprloes/images/Screenshot2025-03-16at6.46.23PM.png?fit=max&auto=format&n=vSyUFekaQzprloes&q=85&s=64cac73370643965513f3e0226bde853" alt="images/Screenshot2025-03-16at6.46.23PM.png" width="1628" height="1262" data-path="images/Screenshot2025-03-16at6.46.23PM.png" />
</Frame>

**Defining usage of charges**

When a customer has available credits, Flexprice will **automatically deduct credits** based on the applicable charges:

1. **Recurring charges**
   * If the wallet allows **subscription-only credits**, they will be used to pay for the customer’s recurring plan.
   * If the credits are not enough, the remaining balance will be charged via the default payment method.
2. **Usage-based charges**
   * If the wallet allows **usage-based credits**, they will be used before any other payment method.
   * If usage exceeds the available credits, standard billing rules apply (e.g., pay-per-use pricing).
3. **Both subscription & usage-based charges**
   * If the wallet allows **both types of charges**, credits will be used wherever applicable.