Auto-Renewal Rules

Application Scope

Auto-renewal applies to yearly/monthly resources, but not to solution portfolio products.

For resources no longer available, you cannot perform any batch operations, enable or disable auto-renewal, or modify auto-renewal information. If you have enabled auto-renewal before your resources are no longer available, your resources can still be automatically renewed before they expire. However, if you have chosen not to renew a resource after it expires, you cannot automatically renew it anymore.

If a partner's customer accounts in the reseller model is frozen by the partner, auto-renewal cannot be enabled for these accounts. Contact the partner to handle it. Although the auto-renewal were already enabled, the resources of frozen accounts cannot be automatically renewed. In this case, the Billing Center will send an auto-renewal failure notification.

The table below lists the cloud services which support auto-renewal.

Note: As for specifics, see the actual renewal page.

Payment Collection Sequence

Auto-renewals can be paid using your account balance (credit balance), cash coupons, bound credit card, and discounts. They are used in the following order of priority:

Discount (use one at a time) → Cash coupon (use one at a time) → Account balance (credit balance) or bound credit card (when the account balance is not enough)

If multiple discounts and coupons can be applied, the system uses them in the sequence described above.

For example, the amount for an auto-renewal is $2,000 USD. The system can use commercial discount (10% off), coupon ($100 USD), account balance (credit balance, $1000 USD), and bound credit card to make the payment. Therefore, the actual amount due = 2000 x 0.9 (10% off discount) – 100 (coupon) = 1000 (account balance) + 700 (credit card) = $1700 USD.

Discount Usage Rule

1. The system selects the highest discount from the applicable discounts (commercial discounts, partner authorized discounts, and promotional discounts). A promotional discount is taken into account only when it was used in a historical order and is still valid.

   Example:

   A customer has a commercial discount (20% off), a partner authorized discount (10% off), and a promotional discount (30% off, which was used in a historical order and is still valid). When the customer's relevant resource is automatically renewed on November 27, 2020, the promotional discount (30% off) is used.

2. If multiple promotional discounts were used in historical orders and are still valid, the one that took effect most recently is taken into account.

   Example:

   A customer has a commercial discount (20% off) and a partner authorized discount (10% off). In historical orders, a promotional discount of 30% off (effective date: November 20, 2020) and a promotional discount of 25% off (effective date: November 25, 2020) were used. All promotional discounts are within the validity period. When the customer's relevant resource is automatically renewed on November 27, 2020, the system compares the promotional discount that has been used before and took effect most recently (25% off, effective date: November 25, 2020), the commercial discount (20% off) and the partner authorized discount (10% off), and selects the optimal discount: the promotional discount (25% off).

3. If multiple promotional discounts that took effect on the same day were used in historical orders and are still valid, the promotional discount that was used for the latest order takes precedence. The discount to be used is selected based on the above rules.

   Example:

   A customer has a commercial discount (20% off) and a partner authorized discount (10% off). In historical orders, a promotional discount of 30% off (effective date: November 20, 2020) and a promotional discount of 25% off (effective date: November 20, 2020) were used. All promotional discounts are within the validity period. When the customer's relevant resource was automatically renewed on November 27, 2020, the system compares the promotional discount of 25% off which was used for the most recently placed order with the commercial discount (20% off) and the partner authorized discount (10% off), and selects the optimal discount: the promotional discount (25% off).

4. If there is no difference to use the commercial discount, partner authorized discount, or promotional discount (used in a historical order and still valid), the commercial discount is used first, then the partner authorized discount, and finally the promotional discount.

Cash Coupon Usage Rule

The following rules apply only to valid cash coupons:

1. Huawei Cloud searches all valid cash coupons of the account.
   • If the balance of multiple valid cash coupons can cover the payment, Huawei Cloud deducts the amount to be paid from the coupon with the maximum balance for the renewal.
   • If the balance of any valid cash coupon cannot cover the payment, Huawei Cloud selects the one with the maximum balance and will automatically deduct the remaining amount from the account balance (including the credit balance) or settled using the added credit cards.
2. If multiple cash coupons have the same balance, Huawei Cloud prefers the cash coupon that expires earliest.
3. After requesting the automatic payment for the renewal, Huawei Cloud locks the amount to be deducted from the selected cash coupon. After the payment is complete, the amount is deducted. If the payment fails or times out, the amount is unlocked.

Fee Deduction Time

If you have not set the fee deduction date for auto-renewal, fees will start to be deducted from your account from 03:00 seven days before the resource expires. Once the fee deduction date for auto-renewal is set, it takes effect immediately. Ensure that you have sufficient account balance or credits in your added credit card.

If the fee deduction for auto-renewal fails due to insufficient account balance or credit balance in your added card, the system will attempt to charge fees at 03:00 every day. If you change the deduction date for auto-renewal during this period, the ongoing fee deduction starting from the original date will be stopped and the fee will start to be charged from the new deduction date until the resources are released. Whenever the fee deduction is successful, the auto-renewal is successful. For details about how to set the deduction date for auto-renewal, see Setting Deduction Date for Auto-Renewal.

Example:

Customer A has purchased an ECS (ECS 01), which will expire on August 31, 2020 23:59:59. The auto-renewal period is one month. Both the grace period and retention period for the customer are 15 days. That means ECS 01 will be released after September 30, 2020 23:59:59.

If customer A has not set the deduction date for auto-renewal, the system will attempt to charge the auto-renewal fee on August 24, 2020 03:00, seven days before ECS 01 expires.

Since the customer's account balance or the credit balance on the added card is insufficient, the first attempt fails, and the system will attempt to charge the fee again on August 25, 2020 03:00. If customer A sets the auto-renewal deduction date to 3 days before expiration before August 25, 2020 03:00, no fee will be charged on August 25, 2020 03:00, but the system will attempt to charge the fee on August 28, 2020 03:00 and then August 29, 2020 03:00, and so on till September 30, 2020 03:00. If the account balance or the credit balance on the added card is still insufficient, the fee deduction for auto-renewal fails.

Auto-Renewal and Manual Renewal

When auto-renewal is enabled, you can still perform a manual renewal. If you pay a renewal manually before the day when you will be automatically charged for the auto-renewal, the system will re-calculate the next auto-renewal day based on the expiration day of the manual renewal.

Rules for Setting Auto-Renewal When Purchasing a Cloud Service

• Monthly: Your subscription will be automatically renewed each month.
• Yearly: Your subscription will be renewed each year.

Example:

Customer A purchased an ECS (ECS 01) and enables auto-renewal for it. If the ECS subscription term is 8 months, it will be automatically renewed each month. If the ECS subscription term is 2 years, it will be automatically renewed each year.