Cursor Teams Seat Removal: Do Not Apply the Individual 14-Day Refund Rule

A contractor finishes a sprint, you remove them from Cursor Teams, and finance expects the bill to fall with the roster. Cursor’s public documentation does not support that assumption when the person has already used credits.

The important split is between two different rulebooks:

• An individual Pro, Pro+, or Ultra subscriber may qualify for review of the most recent payment when the charge is no more than 14 days old and the subscription has not been used in that billing period.
• On Teams, removing a member who used credits leaves that seat occupied until the billing cycle ends. Cursor says billing adjustments appear as credit on a future invoice when applicable.

Those rules were checked on 28 August 2026. This guide covers Teams seat lifecycle, not Auto or model metering; see the separate Cursor Auto pricing guide for that decision.

The 14-day rule is an individual refund review

Cursor’s refund page labels its eligibility section “Individual plans.” It applies to Pro, Pro+, and Ultra, whether billed monthly or annually. The public test has two conditions:

1. The charge was made within the last 14 days.
2. The subscription was not used during that billing period.

Cursor reviews the account rather than promising an automatic refund. If approved, the most recent payment returns to the original payment method in 5–10 business days. Outside the 14-day window, or after usage, that payment is generally not refundable. Cancellation still stops a future renewal, but it does not reverse a processed charge.

That is not a Teams offboarding policy. Quoting it after removing a contractor from Teams mixes an individual unused-payment review with a team billing event.

Teams uses occupied seats and later invoice adjustments

Cursor’s billing help says Teams is billed per active paid seat rather than from a pool of pre-allocated empty seats. The same page documents three separate events:

• adding a member mid-cycle creates a pro-rated charge;
• removing a member who used credits keeps the seat occupied until cycle end;
• billing adjustments appear on a future invoice as credit when applicable.

The members documentation repeats the occupancy rule and says pro-rated credit for removed members is applied to the next invoice. It does not publish a formula that maps every removal to a specific credit amount. It also does not promise that a zero-usage removal frees a seat immediately or receives a card refund.

Treat the invoice-credit language narrowly: it is not the individual 14-day route, and “when applicable” is not a guarantee that every removed seat produces the same adjustment. For a disputed charge, Cursor directs customers to support with the invoice ID, date, amount, and account email.

What a paid seat costs

Cursor’s 1 June 2026 Teams pricing announcement and current members page listed the following on 28 August 2026:

Seat type	Monthly	Annual monthly equivalent	Included usage
Standard	$40 per user	$32 per user	Standard allowance
Premium	$120 per user	$96 per user	5× Standard
Unpaid Admin	$0	$0	No product access or included usage

Teams can mix Standard and Premium seats. The announcement said the grid applied immediately to new customers and to renewing customers whose billing cycles began on or after 1 July 2026. An existing contract or invoice remains the account-specific source of truth.

The renewal date is the team signup date and does not move when members change. A Standard-to-Premium upgrade takes effect immediately and adjusts billing for the rest of the cycle; a Premium-to-Standard change waits until renewal.

The overlap risk is real, but replacement mapping is not public

Suppose a departing contractor used credits. The documented part is clear: after removal, that seat remains occupied until the cycle ends. If another member is added mid-cycle, the documented add event is pro-rated.

What the public pages do not explain is whether the dashboard can map a replacement onto that occupied seat in every account, or whether the replacement always appears as an additional paid seat. Do not turn “occupied” into an invented license-transfer procedure. Before adding the replacement, check the dashboard’s seat count and projected charge; if it is not explicit, ask Cursor support how the specific invoice will treat the change.

This is different from legacy Windsurf Enterprise credit seats, where the official example says a replacement inherits the old occupant’s already-used prompt credits. Cursor documents continued occupancy, not a published remaining-credit handoff.

A safe contractor offboarding sequence

1. Record the billing-cycle end and current seat type. Member changes do not move renewal.
2. Check usage before removal. If credits were used, budget the seat through cycle end. Removal may still be necessary for access control.
3. Export anything the team needs. Cursor says removing a user permanently deletes that person’s Memories and Cloud Agent data.
4. Remove the person, then inspect billing. Record the new seat count, any future-invoice credit, and the cycle end shown in the dashboard.
5. Price the replacement before adding them. A mid-cycle add is pro-rated, but the public docs do not settle every occupied-seat replacement case.
6. Keep on-demand usage separate. Cursor says already-consumed on-demand and fast-request charges are not refundable.

Do not describe the next-invoice credit as cash back, and do not promise that an annual seat receives a particular unused-month adjustment. The public wording is not detailed enough for either claim.

The decision rule

For contractor-heavy teams, removal is first an access and data action. It is not proof that this cycle’s cost fell.

• If the member used credits, keep that seat in the forecast through cycle end.
• If the member used no credits, verify the dashboard outcome rather than assuming the individual 14-day rule applies.
• If a replacement cannot wait, obtain the projected pro-rated charge before onboarding.
• Reconcile any applicable invoice credit on the next invoice; escalate a mismatch with the invoice details.

The durable distinction is simple: individual plans have a 14-day unused-payment review; Teams documents occupied seats and applicable future-invoice credit. Do not cross-wire them.