Update: Changes to WhatsApp’s Pricing Model

We want to inform you on couple of changes WhatsApp will be having in next couple of months. The first change is coming April 1st and is related to introducing four new template categories when communicating with your customers. The second big change is coming June 1stand is related to a price change that will follow these template/conversations categories changes.

What are the new template categories?

• Utility templates – Utility templates relate to a specific, agreed-upon transaction and accomplish one of the following: Confirm, suspend, or change a transaction or subscription. Any template that has a mix of utility and marketing content will be classified as a marketing template.
• Authentication templates (These requirements will apply to authentication templates starting May 29, 2023. ) – Authentication templates enable businesses to authenticate users with one-time passcodes (usually 4-8 digit alphanumeric codes), potentially at multiple steps in the login process (e.g., account verification, account recovery, integrity challenges).

Authentication templates are our most restricted. Businesses must use WhatsApp’s preset authentication message templates, which includes optional add-ons like security disclaimers and expiry warnings. In addition, authentication templates must configure a one-time password button (copy code or one-tap).

URLs, media, and emojis are not allowed for authentication template content or parameters. Additional length restrictions of 15 characters also apply to parameters.

• Marketing templates – Marketing templates are our most flexible – they do not relate to a specific, agreed-upon transaction and instead may relate to the business and/or its products/services. These templates may include promotions or offers; welcoming / closing messages; updates, invitations or recommendations; or requests to respond or complete a new transaction. Any template that has a mix of utility and marketing content will be classified as a marketing template.

What are the new conversation categories?

There will be three business-initiated conversation categories (all of which require customer opt in):

• Utility conversations – Facilitate a specific, agreed-upon request or transaction or update to a customer about an ongoing transaction, including post-purchase notifications and recurring billing statements.
• Authentication conversations – Enable businesses to authenticate users with one-time passcodes, potentially at multiple steps in the login process (e.g., account verification, account recovery, integrity challenges)
• Marketing conversations – Include promotions or offers, informational updates, or invitations for customers to respond / take action. Any conversation that does not qualify as utility or authentication is a marketing conversation.

The fourth category is service conversations – all user-initiated conversations will be categorized as service conversations, which help customers resolve inquiries. More details on template guidelines can be found here.

What does this mean for your business?

No action is required on your part. On April 1, 2023, Meta will update your WhatsApp Business Manager accounts to reflect the new template categories. You’re welcome to review these changes to make sure everything looks in order. On the off chance that you disagree with the template category assigned to a template, you can directly appeal to Meta from within the WhatsApp Manager. Please note that you can only appeal until May 15, 2023, after which Meta will close the appeal forms. Read more here about timelines and the process for appealing an incorrect template assignment.

Conversation charges will be based on template category and country/region

When a template is delivered, it opens a new conversation of that category and incurs the charge of that conversation category, unless the template is delivered during an open conversation of that category. (For example, if a utility conversation is open and a marketing template is delivered within that open conversation, a new, separate marketing conversation is opened, and marketing conversation charge is initiated.) However, sending multiple templates of the same category within an open conversation will not incur additional charges.

Service conversations will still only be initiated when no other conversation window is open and a business responds to a user with a free form message within the 24-hour customer service window. If a business replies to a user with a template message or sends a template message in an open service conversation, this opens a new conversation based on the template category.

Charges for conversations are based on the user’s country code. A user here is defined as the customer that your business is communicating with. Rates for business-initiated and user-initiated conversations vary by country or region.

NOTE: Please refer to Meta’s new rate cards to estimate the pricing changes you may incur, noting again that business-initiated conversations will no longer be included in the free tier.

IMPORTANT: Business-initiated conversations will no longer be included in the free tier. Each WhatsApp Business Account (WABA) will receive 1,000 free user-initiated conversations per month.