Microsoft is in the process of changing when you are billed for your recurring subscriptions. Today, your recurring subscription is using a billing schedule that bills you after your subscription renews. This means that in some cases, you can cancel your subscription, but you still need to pay for the current month.
Throughout 2019, Microsoft is moving to a new billing system where you’ll always be charged on the same date your subscription renews. In some cases, this means you will see two charges within one month as Microsoft performs a one-time charge as we “catch up” your billing date to match your renewal date. Here’s an example:
After you create your Microsoft account, your account billing date is permanently set on the day of your first purchase. Let’s say your first purchase was on January 5th. From that day forward, Microsoft marked the 5th day of each month as the charge date for any recurring subscriptions you purchase in the future.
Now imagine you purchase a monthly recurring Office 365 Home subscription on January 20th. Your initial purchase for covers the first month until February 20th, and your subscription will renew on the 20th of each month. On February 20th, your subscription renews for the second month, but Microsoft delays the billing until March 5th – because that’s the next available billing date. This means that your subscription will always renew first, and then Microsoft waits until the next available billing date to charge you.
When Microsoft moves your subscription over to the new billing platform, we need to “catch up” your billing date with your subscription renewal date. So, even though you just got billed on March 5th for the month of February, you’ll also get another bill on March 20th to match your next renewal date. That's the charge for March 20th thru April 20th. Now you're caught up! From this point on, you’ll only get billed once a month on the day your subscription renews.
More info about your subscription
When a balance is "past-due," it means we've tried to charge your payment option, but it didn't work. We'll keep retrying, and if it continues to fail the subscription will eventually be canceled.
To pay a past-due balance immediately, sign in to your Services & subscription page, select Pay now for the subscription, and follow the instructions.
"Pending" means that your subscription recurred according to its terms, but we haven't tried to charge your payment option yet.
Get even more info
If you can't see a subscription in your account, see Pay for a past-due Microsoft subscription.
To turn off any Microsoft subscription, including Xbox Live and Office 365, see Cancel or turn off recurring billing for a Microsoft subscription.
If you want to change your Xbox Live, Office 365, or any other Microsoft subscription, see Change how you pay for a Microsoft subscription.
You can manage Office 365 and all of your other Microsoft subscriptions in one place – see Microsoft account help.
If you want to check on your Office 365 subscription, see Find out when your Office 365 subscription expires.