This option is great for those subscription services that you use for which the cost varies by usage.
Why is that? Because you can set an expected budget for that subscription and allow some room for leverage by adding the percentage of variation that will be automatically approved and paid.
I use Twilio. Usually, the payment for the subscription is within £100 but, as it varies on the use I make of it, it can add up to £110 or even £120 when used heavily.
This is how I set up the card:
- Fixed budget at £100
- Budget flexibility activated
- Percentage of variation at 20%
This means that if by next month the charge adds up to £118, the payment will go through successfully as the cost is within the room for leverage I had set (within 20% over the budget of £100).
But if the month after, Twilio is used in excess and the bill adds up to £200, the payment for the subscription will not be executed as it exceeds the room for leverage I had set (£200 being 100% more than my budget).
I will then have the option to manually settle the bill upon review.
So... in a sentence? Budget flexibility allows payments to go over the initial budget set, up to a certain amount that you have pre-determined.