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What happens if you miss your Microsoft 365 payment?

Ever wondered what happens if you miss your Microsoft 365 payment deadline?  Office Watch deliberately skipped the due dates to find out.

Microsoft 365 works off what Microsoft calls a ‘subscription’ model of (usually) annual payments.  That applies to all Microsoft 365 products, Family or Personal software plans plus the Business plans which include mailbox hosting.

The good news … Microsoft 365 services do NOT stop if the due date passes without renewal.

Office Watch has tested missed payments with both a Microsoft 365 Family plan and Microsoft 365 Business plan.  The accounts had expired credit cards recorded so any attempt to pay would fail.  We let the due date pass without renewal to see what happened.

In the weeks before a Microsoft 365 renewal, emails are sent reminding of the upcoming deadline. 

That gives you an opportunity to find a cheaper renewal elsewhere and ‘top up’ Microsoft 365 Family/Personal for less.  Or check the credit card details saved at All Subscriptions | Payment Method.  The exact due date and amount is also confirmed on that page.

Switch Plan

The ‘Switch plan’ link gives you the choice of annual or monthly payments (monthly is more expensive).

It does NOT appear to let you change between Family and Personal on the due date – pity.

Passing Microsoft 365 due date without paying

What happens if the Microsoft 365 due date passes without payment – nothing! 

Software and online services will continue to work, at least for a few days without interruption.

Emails are sent letting you know about declined payment attempts but there’s no stoppage of Microsoft 365 services.

We let the due date pass, unpaid, for about three days.  There was no interruption to Microsoft services.

It’s not known how much ‘grace’ Microsoft grants before cancelling Microsoft hosting services.  Certainly there are several warning emails and online messages before any drastic action is taken.

Eventually Microsoft will limit Office software or shut off access to Business cloud services. But it doesn’t happen immediately on the due date nor without warning.

Of course, it’s best to pay on or before the renewal date but don’t panic if there’s a little delay. Microsoft grants some leeway before cancelling 365 services.

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