# How to Add Credit-Based Billing to Your AI SaaS (Step-by-Step)

> Learn how to implement credit-based billing for your AI SaaS using Dodo Payments. This step-by-step guide covers usage-based payment integration and scaling.

- **URL**: https://dodopayments.com/videos/credit-based-billing-ai-saas
- **Video**: https://www.youtube.com/watch?v=4RR3Yj3Qeuw

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Implementing credit-based billing is a common challenge for AI SaaS founders. This model allows users to pay for exactly what they use, which is ideal for token-heavy applications. In this tutorial, we walk through the entire process of setting up usage-based billing with Dodo Payments. You'll see how to define credit units, track consumption, and automate the invoicing process without writing complex backend logic.

Dodo Payments acts as your merchant of record, handling the global tax compliance and payment processing automatically. This means you can focus on building your AI features while we manage the financial infrastructure. We demonstrate how to integrate our API to update credit balances in real-time. By the end of this video, you'll have a fully functional billing system that scales with your user growth.

Adding this flexible payment integration helps reduce friction for new customers. They can start small and increase their usage as their needs evolve. We also cover how to handle edge cases like failed payments or credit exhaustion. Using Dodo Payments simplifies SaaS billing so you can launch faster and stay compliant across multiple jurisdictions.