Credit Card Billing for Renewals and Overages

What it is

Where a Customer's initial Order is paid by credit card or similar online payment method, the agreement authorizes Atlassian to charge that same payment method for subsequent renewals, new orders, usage overages, expenses, and unpaid fees without requiring a separate payment authorization for each transaction.

Why it matters (compliance & governance perspective)

This provision authorizes recurring charges to a stored payment method across multiple billing events, including scope-of-use overages that may not be individually pre-approved by Customer, creating a financial exposure if usage exceeds purchased entitlements.

Consumer impact (what this means for users)

Under this clause, a credit card provided for an initial Order may be charged for automatic renewals, additional orders, scope-of-use overages, and unpaid fees as they arise under the Agreement.

Institutional analysis (regulatory & governance intelligence)

1. REGULATORY LANDSCAPE: Stored payment credential use and recurring billing practices may engage card network rules (Visa, Mastercard) and, for US customers, Regulation E where applicable. The FTC Act Section 5 standard for unfair or deceptive practices applies to undisclosed or unanticipated recurring charges. California's Automatic Renewal Law may impose requirements on how recurring billing authorization is obtained and disclosed, with applicability to B2B contexts involving legal nuance. 2. GOVERNANCE EXPOSURE: Medium. The provision authorizes Atlassian to charge a stored payment method for scope-of-use overages, which can arise without a discrete Customer approval event if Users exceed licensed entitlements. The absence of a per-charge notification requirement in this clause means charges for overages may post before internal finance teams are aware of the usage excess. 3. JURISDICTION FLAGS: California-domiciled customers face potential Automatic Renewal Law considerations. For EMEA customers, EU payment services regulations and local consumer protection law may affect how recurring payment authorizations must be obtained, though this agreement governs B2B relationships where individual consumer payment regulations may apply differently. 4. CONTRACT AND VENDOR IMPLICATIONS: Procurement and accounts payable teams should review whether their internal controls require per-invoice approval before payment processing and whether the stored card authorization conflicts with those controls. Organizations with strict purchase order requirements may need to negotiate payment term modifications or establish invoice-based billing to align with internal approval workflows. 5. COMPLIANCE CONSIDERATIONS: Finance and legal teams should confirm that the initial payment authorization adequately covers the full scope of transactions this clause authorizes, including overages. Organizations should implement monitoring of Scope of Use consumption to detect approaching overages before charges are triggered. Teams should also confirm that card-on-file data handling by Atlassian aligns with PCI DSS requirements.

Applicable agencies

Provision details

Other risks in this policy

• 30-day return policy for initial Product Orders high
• AS IS disclaimer with no implied warranties high
• Atlassian deletion of Customer Data after termination high
• Atlassian information security program obligation high
• Atlassian IP infringement defense obligation high
• Atlassian right to remove violating Customer Data high