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.