A) For customers upgrading from a monthly Core or Extended plan to a monthly Ultimate plan

When upgrading a monthly plan to a higher tier, e.g. from Core to Ultimate, the pro-rated difference between the the existing plan you’ve already paid for (e.g. Core) and your new plan (e.g. Ultimate) will be added to your next monthly payment (i.e. you won't be charged anything the day you upgrade). Please don’t be alarmed when you see your next monthly charge is larger than the monthly plan cost (e.g. $24.99).

We only bill customers once per month, so when customers upgrade mid-month, we add the pro-rated difference to their next monthly payment. This will result in a larger than expected charge in your next monthly payment to catch you up from the first month. After that first catch up charge, the price will resume back to the normal monthly rate.

B) For customers upgrading from a monthly plan to a yearly plan

When upgrading from a monthly plan to a yearly plan, e.g. from Ultimate monthly to Ultimate yearly, the remaining unused value of the monthly plan you purchased will be applied as a credit towards your new yearly plan.

For example, let's say you're approximately half-way through your first month on the Core plan at $9.99 per month, and then you decide to upgrade to the Ultimate yearly plan. Your Ultimate yearly plan would be billed with approximately a $5 discount to credit you for the unused portion of your first month on the Core plan.
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