primex
21 hours ago
Our team recently ran into a surprising billing situation with Cursor’s Teams plan.
While managing seats, we briefly added a third user by mistake and removed the seat almost immediately (within seconds). The seat was never used and there was no activity on it.
Despite this, the system immediately billed us for a full annual seat (~$450).
Importantly, when adding the seat there was no warning or indication in the UI that this action would immediately trigger a full annual charge.
We contacted support and explained that the seat existed only momentarily and had never been used. However, support confirmed that this is expected behavior: adding a seat triggers billing for the entire billing period, even if the seat is removed immediately.
After several follow-ups asking for the charge to be refunded to the original credit card, Cursor declined and maintained that the charge stands due to their billing policy.
Another confusing aspect of the pricing is the Teams plan itself. The plan costs $40 per user/month, but it includes only $20 of AI usage credits. The remaining cost appears to be for team features and administration. This wasn’t obvious to us when we initially chose the plan.
From a user perspective several things feel problematic:
There was no warning in the UI that adding a seat would immediately trigger a full annual charge.
A seat that existed for seconds and was never used resulted in a $450 charge.
The pricing presentation suggests $40/month value, but only $20 of that is actual usage credit.
To be clear, this isn’t about avoiding paying for legitimate usage. It’s about accidental seat additions, refund handling, and pricing transparency.
I’m curious if other teams using Cursor have run into similar billing behavior.
If other teams experienced similar billing issues with Cursor, it might make sense to coordinate and explore legal options together.
benjlang
8 hours ago
Can you shoot me a note, will get this sorted out: ben@cursor.com
thedelanyo
20 hours ago
I guess these guys (Cursor and other similar Ai startups) are revenue hungry?
primexx
9 hours ago
yes you are right, that would work. BUT reddit is full of compaints of the same or similar types. Then i think it can be expected from cursor that they change their billing practices and be quite more transparent, informing the user before(!) a great amount of money is spend.
b112
20 hours ago
Just do a charge back.
xtiansimon
4 hours ago
What's Cursor's chargeback policy? They might ban you permanently.
b112
4 hours ago
One might want to think, should I continue to integrate more tightly with a company that will screw me over, or should I choose something else?
One thing which is a constant, if they're screwing you over and you take it, they're not going to get better down the road. They'll likely get worse.
PaulHoule
20 hours ago
"this isn’t about avoiding paying for legitimate usage. It’s about accidental seat additions, refund handling, and pricing transparency."