Microsoft has switched Skype to a monthly subscription-based model instead of its credit-based system.

Users are now no longer able to purchase new Skype credit and money already loaded onto an account must be used at least once every six months in order to remain active.

The news was not officially announced. Instead, it was inadvertently uncovered when a volunteer moderator on a Microsoft forum informed a user who couldn’t top-up their credit.

A spokesperson for Microsoft has since confirmed to TechCrunch that it has completely ended sales of Skype credit and Skype numbers: “The sales of new Skype numbers and Skype credit have been permanently halted.”

“For some customers, the interface for purchasing new Skype credit may still be visible in certain entry points, although payment attempts will not go through.”

“We are aware of this issue and working on making the necessary updates.”

They said the decision was ultimately based on its customers: “[We] continuously evaluate product strategy based on customer usage and needs.”

Skype Follows SaaS Trend

Last year, the tech news publication observes, Microsoft published figures that Skype had 36 million daily active users.

This means that the updated payment method will affect millions of people and an unknown amount of credit will expire for less frequent service users who go beyond the 180-day limit.

TechRadar reported that Microsoft has “acknowledged inconsistency in its messaging” and will provide an update.

Credit Refunds and Reactivations

To clarify what would happen to customer credit if they fail to keep it active, I contacted a Skype customer support agent who referred me to a Microsoft post detailing the eligibility for refunds, which include active subscriptions that have not been used, refunds requested within 14 days of purchase, technical issues determined to be Skype’s fault, fraud, and charges made in error.

Purchases made beyond 14 days of purchase can be refunded at Skype’s discretion, but I was told: “We have no option to have [your] Skype Credits refund[ed] as we can only make a refund for a purchase that was made 90 days ago.”

This would put 180 days of inactivity firmly beyond the realm of refunds.

I happened to have some credit on my account, purchased around 15 months ago, that had become inactive, which he was able to reactivate for me.

He also reassured me that Skype will send me reminders if I get close to the new 18-month cut-off: “We send two reminder emails, 7 days and 2 days before your Skype Credit becomes inactive.”

Similarly to TechCrunch, I was told: “Microsoft decided to stop new sales of Skype Credit and Skype Numbers based on user feedback and customer needs, reflecting consumer usage patterns and enabling us to focus our resources on further developing what consumers use and value most highly.”

The Teams Takeover

Skype for Business was born out of Skype’s consumer offering in 2014, following Microsoft’s acquisition of Skype in 2011 for $8.5 billion.

The Skype for Business Online variant was made available through the Microsoft Office 365 productivity suite, but it soon started to compete with Microsoft Teams.

As Teams was the company’s preferred platform, it took the decision to retire Skype for Business Online while trying to convert as many Skype customers into Teams users as possible in the process.

In 2019, Microsoft made the decision to retire Skype for Business Online, setting the retirement date as 31 July 2021.



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