**How OpenAI Support Invents Its Own Billing Rules**

API
,
1

How OpenAI Support Invents Its Own Billing Rules

In the complex world of digital transactions, understanding and adhering to agreed terms is paramount. Recently, I encountered a situation with OpenAI that underscores the importance of clear communication and the adherence to established terms. This post explores my experience and the broader implications for billing practices in tech companies.

A Dispute Over Terms

I discovered an inconsistency in the billing practices regarding my account with OpenAI. According to the official terms of their prepaid billing policy, credits are supposed to cover any API usage up until the end of the billing period, irrespective of the date the credits were purchased in this month. However, an invoice I received did not reflect this policy.

On March 29, 2024, I topped up my account to work furthermore, expecting this balance to cover any API usage until the end of the current billing period on March 31., described and without discussion of possibilities or scope for creativity in the rules.
https://help.openai.com/en/articles/8264644-what-is-prepaid-billing

Despite this, my top-up was seemingly ignored for the current period’s invoice, leading to a direct contradiction between OpenAI’s enforcement and their written terms.

Demand for Immediate Action

I have formally requested OpenAI to review and adjust the disputed invoice to ensure that it aligns with their stated terms. This situation highlights a significant issue in digital billing practices—discrepancies between what is enforced and what is agreed upon in the terms and conditions. The new fantasy rule of the support is now, that now days exists, where a prepaid is not possible. Now, i have a massive plus on the account and an unpaid bill with less amount on the other side. Results in a cancellation of my account.

Implications for Digital Ethics

This issue raises critical questions about the ethical responsibilities of tech companies in managing their billing systems. Transparency and consistency are crucial in ensuring trust and fairness in digital transactions. Customers must rely on companies to adhere strictly to their own rules, especially when financial transactions are involved.

Looking Ahead

Should this matter not be resolved promptly, it could lead to further actions, including possibly involving the press and informing senior management. Such steps are necessary to ensure accountability and adherence to ethical standards in digital billing.

The Importance of Accurate Billing

Inaccurate billing isn’t just a minor oversight; it can have real-world consequences. In Germany, for example, issuing an incorrect invoice that does not reflect actual transactions is considered a form of tax fraud. Since two months, I have a wrong-false invoice. At least it should have been balanced this month according to the rules. The support (Sugar and Bugz) have their own realities and rules, away from the written rules and terms and conditions of OPENai. Although laws may vary across regions, the principle of accurate and fair billing should be a universal standard.

Conclusion

As we navigate the digital age, the importance of maintaining clear and consistent billing practices cannot be overstated. Companies like OpenAI must ensure they adhere to their published terms, providing their customers with transparency and reliability. I look forward to a swift resolution of this issue, reinforcing the need for integrity in digital transactions.

Thank you for your attention to this urgent matter. I eagerly anticipate a prompt and satisfactory resolution.

Sincerely,

2 Likes
2

Oh, there are more people with the same issue. Nice.

3

Please contact help.openai.com and wait 1-2 months ( or 4-8 weeks ) for a response.

Good luck getting their info. :+1:

Pending monthly bills from past usage will not be paid for by credits:

1 Like
4

I’m not sure which rules you are referring to. The application of prepaid credits towards invoices is clearly described in the openai guidelines at What is prepaid billing?:

“The credits you’ve bought will be applied to your monthly invoice. This means that any API usage you incur will first be deducted from the prepaid credits. If your usage exceeds the credits you’ve purchased, you’ll then be billed for the additional amount.”

I don’t know what rules you derive from this or what interpretation you see for this clearly defined paragraph.

This is standard business practice. Additionally, the support team responds within less than 7 days via the official billing email address.

If it becomes necessary to establish legal clarity, I am not concerned. My legal protection insurance will cover it. Incorrectly displayed deposits on invoices can constitute tax fraud, which I will also report to the tax authorities. Such issues can become quite troublesome when audited, even by the press.

5

I don’t think @grandell1234 is necessarily referring to any particular rule - what you see is some sort of (anecdotal, yet) empirical evidence of what actually happens.

I wouldn’t tell anyone to dispute their credit card charges or attempt to resolve this through legal means unless it’s an absolute last resort or this has or is about to cause significant and immediate harm to their business.

OpenAI is unfortunately not super amazing at customer support, or helping you maintain any sort of operational stability. If you want to run a business, Azure is a significantly better choice.

The OpenAI platform, with its simple UI/DX, is great for trying new things and bashing prototypes together for a couple hundred bucks. But for any sort of scale, if you don’t have a dedicated account manager, I wouldn’t recommend it. They’re simply not good at it. Their defense will be, that they’re trying their best. And that might be true.

6

Sorry Help pages are not the law, they just help you understand what is happening. So let’s look at the law:

Prepaid Service Credits represent the amount you have paid in advance for use of the respective Services.

You and OpenAI agree that Disputes must be brought on an individual basis only

if a finding of partial illegality or unenforceability would allow class arbitration, class action, or representative action, this entire dispute resolution section will be unenforceable in its entirety.

If you are a business or organization, to the extent permitted by law, you will indemnify and hold harmless us, our affiliates, and our personnel, from and against any costs, losses, liabilities, and expenses (including attorneys’ fees) from third party claims arising out of or relating to your use of the Services and Content or any violation of these Terms.

Informal dispute resolution. We would like to understand and try to address your concerns prior to formal legal action. Before either of us files a claim against the other, we both agree to try to resolve the Dispute informally. You agree to do so by sending us notice through this form(opens in a new window). We will do so by sending you notice to the email address associated with your account. If we are unable to resolve a Dispute within 60 days, either of us has the right to initiate arbitration. We also both agree to attend an individual settlement conference if either party requests one during this time. Any statute of limitations will be tolled during this informal resolution process.

7

Thx @grandell1234 for this form.

I appreciate your support and thank you for your time.

However, I need to point out that the support responses have continually directed me to a link that doesn’t address my concerns. Specifically, there is no mention on the linked page that March 29 is excluded from the prepaid service for the March billing period, which extends to March 31.

In Germany, I require a clear invoice that shows I have paid this sum to the company. Without this, I cannot create a clean tax report. Additionally, for compliance reasons, OpenAI must accurately declare this income and avoid issuing incorrect invoices. While such practices might be more commonplace in the U.S. (hard to imagine, that in US bills exists, where the sum is wrong), they are quite problematic here. And at least in this month, I must have a new bill with the difference. But there is no bill. OpenAI takes my money.

In terms of liability clauses in terms and conditions, “third parties” refer to individuals or entities not directly involved in the contractual relationship between a service provider (like a company) and its client (like myself). For example, if someone claims that your use of a company’s services has infringed their rights and sues the company, you might be required to defend the company and cover the costs if such a clause is included in your agreement. This is a typical example of a third-party claim.

On the other hand, if you, as a client, are experiencing issues like your prepaid credits not appearing correctly on your account statement, this dispute is directly between you and the company and does not involve a third party. In this case, you are directly engaged with the company to resolve an internal issue, not a third-party claim.

Regarding the form: Is this linked correctly on the page? Because what I see is only a Google Sheet, without any reference that it is from OpenAI. Could you please post the original link?

Thank you again for your assistance and your time.

8

Yes, it works for me.

All of their pages like this are Google forums.

Screenshot 2024-05-12 at 12.40.40 PM

I posted the original link.

9

This OP pasted to multiple places about misunderstandings. Which I clarified to end one topic.

10

This does not align with what is stated in the official guidelines. Thios are your private view.
Here is a direct link to OpenAI’s prepaid billing information, which contradicts your statement: Prepaid Billing at OpenAI

According to the official guidelines, if I exceed my typical usage, I should be able to update my plan at any touchpoint. This is a normal business practice, and most companies appreciate such flexibility. It seems that OpenAI is not accommodating this approach.

In December, during a complex project, I faced a similar situation where I had to repeatedly top up my credits, even on December 28. The uploaded credits were clearly visible as “Credit Grants ($XXXXX.05 off)” and were shown as a positive balance, unlike a normal bill which would show a debit. This is consistent with the rules, and there was no issue of account suspension at that time.

Now, I am presented with a bill that does not reflect any Credit Grants, which, I believe, is incorrect. Or can you explain, what is the difference to the old behavior? It’s clear descirbed:

Once you’ve consumed all your credits, your API requests will start returning an error letting you know you’ve hit your billing quota. If you’d like to continue your API usage, you can return to the billing portal and use the “Add to balance” button to purchase additional credits.

I see no sense to discussing the given rules from OpenAI. If we can’t trust them, what is the sense of such FAQ and help Guidelines?

The credits you’ve bought will be applied to your monthly invoice. This means that any API usage you incur will first be deducted from the prepaid credits.

11

I can’t access your account. And I’m only typing words of help because I’m a nice guy. Winning some imaginary argument won’t change how OpenAI operates.

If you’ve been prepaid for a good while, you may have done just what the new help article describes: run your balance into the negative before it gets shut off.

If I infer correctly, your negative amount outstanding won’t be brought positive by adding credits and having the outstanding balance paid off by the credits. Your negative account portion would be a monthly billable.

Such a system was likely set up to see that they have both a method to make you active again without needing to immediately pay a large amount, and to also give themselves the right to get what’s owed from your credit card despite the credit system.

Delaying the billing of some huge negative overage would give you some amount of time to try to work with customer service to resolve some hacking or misaccounting.

12

Was there a reply at any time?

I have a case where more than of 200 USD are in dispute, and I’m waiting for 12 weeks already.