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.
Let’s see an example:
- I use Twilio. Usually, the payment for the subscription averages 100 pounds but, as it varies on the use I make of it, it can add up to 110 pounds or even 120 pounds when using it heavily.
- Thus, I set the budget as 100 pounds and I activate the budget flexibility option when setting up the card, the percentage of variation I set it to 20%.
- This means that if by next month the charge adds up to 118 pounds it will be paid as the cost is within the room for leverage I had set (within 20% over the budget of 100 pounds).
- The month after, Twilio is used in excess, the bill adds up to 200 pounds. Then the payment for the subscription is not executed as it exceeds the room for leverage I had set (that to approve payments up to 20% greater than the budget).
- I will then have the option to manually settle the bill upon review.
So... in a sentence? Budget flexibility allows payments over the initial budget set, up to a certain amount that you have pre-determined.