With Drip, annual billing works on a credit system. When you sign up for an annual plan, we run an upfront charge and administer 1 year worth of credits to your account (based on the number of people in your account). We then deduct the appropriate amount of credits based on your total usage at the end of your billing period. Visit our pricing page for more information about how annual credits work.
If your Total People count account exceeds the limit for the plan you originally signed up for, your account will auto upgrade to the next most cost-effective plan type based on the high water mark of active people in your account(s) during that billing period. Whether you run out of your annual credits early, or on the 1-year mark, Drip will automatically continue your subscription and charge the credit card on file for another year of annual credits based on the current plan type your subscription currently falls under. If you don’t want to renew your annual subscription, switch to monthly billing or cancel your account.