Best Practices for API Rate Limits and Quotas with Moesif to Avoid Angry Customers

Like any online service, your API users expect high availability and good performance. This also means one customer should not be able to starve another customer’s access to your API. Adding rate limiting is a defensive measure which can protect your API from being overwhelmed with requests and improve general availability. Similarly, adding quota management also ensures customers stay within their contract terms and obligations ensuring you’re able to monetize your API. Without quota management, a customer could easily use far more resources than their plan allows even if they stay within your overall server rate limits. Yet, incorrect implementations can cause customers to become angry due to their requests not working as expected. Worst, a bad rate limiting implementation could fail itself causing all requests to be rejected. This guide walks through different types of rate limits and quotas. Then, it walks through ways to set up rate limiting that protects your API without making customers angry.

How do rate limit and quotas works

Both quotas and rate limits work by tracking the number of requests each API user makes within a defined time interval and then taking some action when a user exceeds the limit which could be a variety of things such as rejecting the request with a 429 Too Many Requests status code, sending a warning email, adding a surcharge, among other things. Just like different metrics are needed to measure different goals, different rate limits are used to achieve different goals.

Rate limits vs quota management

There are two different types of rate limiting, each with different use cases. Short term rate limits are focused on protecting servers and infrastructure from being overwhelmed. Whereas, long term quotas are focused on managing the cost and monetization of your API’s resources.

Rate limits

Short term rate limits look at the number of requests per second or per minute and help “even out” spikes and bursty traffic patterns to offer backend protection. Because short term rate limits are calculated in real-time, there is usually little customer-specific context. Instead, these rate limits may be measured using a simple counter per IP address or API key.

Example use cases for rate limits:

  • Protect downstream services from being overloaded by traffic spikes
  • Increase availability and prevent certain against DDoS attacks from bringing down your API
  • Provide a time buffer to handle capacity scaling operations
  • Ensure consistent performance for customers and even out load on databases and other dependent services
  • Reduce costs due to uneven utilization of downstream compute and storage capacity.


Due to their time sensitivity, short term rate limits need a mechanism to identify different clients without relying heavily on external context. Some rate limiting mechanisms will use IP addresses, but this can be inaccurate. For example, some customers may call your API from many different servers. A more robust solution may use the API key or the user_id of the customer.


Short term rate limits can be either scoped to the server or a distributed cluster of instances using a cache system like Redis. You can also use information within the request such as the API endpoint for additional scope. This can be helpful to offer different rate limits for different services depending on their capacity. For example, certain services may be very costly to service and can be easily overwhelmed such as launching batch jobs or running complex queries on a database.Short term rate limits can be imperfect given their real-time nature which makes them a poor form for billing and financial terms, but great for backend protection.

Quota management

Unlike short term rate limits, long term quotas measure customer utilization of your API over longer durations such as per hour, per day, or per month. Quotas are not designed to prevent a spike from overwhelming your API. Rather, quotas regulate your API’s resources by ensuring a customer stays within their agreed contract terms. Because you may have a variety of different API service tiers, quotas are usually dynamic for each customer, which makes them more complex to handle than short-term rate limiting. Besides quota obligations, historical trends in customer behaviors can be used for spam detection and automatically blocking users who may be violating your API’s terms of service (ToS).

Quota warning email

Examples use cases for quota limits:

  • Block intentional abuse such as sending spam messages, scraping, or creating fake reviews
  • Reduce unintentional abuse while allowing a customer’s usage to burst if needed
  • Properly monetize your API via metering and usage-based billing
  • Ensuring a customer does not consume too many resources or rake up your cloud bill.
  • Enforce contract terms of service and prevent “freeloaders”


Long term quotas are almost always calculated on a per-tenant or customer level. IP addresses won’t work for these cases because an IP address can change or a single customer may be calling your API from multiple servers circumventing the enforcement.


Because quotas are usually enforcing the financial and legal terms of a contract, it should be unified across all servers and be accurate. There can’t be any “guesstimation” when it comes to quotas.

How to implement rate limiting

Usually a gateway server like NGINX or Kong is the ideal spot to integrate rate limiting as most external requests will be routed through your gateway layer. For short term rate limit violations, the universal standard is to reject requests with 429 Too Many Requests. Additional information can be added in the response headers or body instructing the client when the throttle will be cleared or when the request can be retried.

For long term quota violations, a number of different actions can be taken. You could either reject the requests similar to short term rate limiting, but you could also handle other ways such as adding an overage fee.

Blocking users exceeding their quota

An easy way to manage quotas are with Moesif’s API Governance features. This enables you to add rules that regulate your API with just a simple SDK and a few clicks within the UI. Instructions on how to do this are below:

  1. Within Moesif, create a user cohort under the User Lookup tab. Add your criteria when a user is considered exceeding their quota. In this example, when a user makes more than 1,000 /purchases or /purchases/:id/decline within an hour period.

Creating saved cohort of users who exceeded their quota

  1. Now that we created the cohort, go to API Governance under the Alerting & Governance tab. From here, create a new governance rule as shown below. In this case, we are short circuiting the request with the status code 429 Too Many Requests. We also provide an informational message on why the request is rejected.

Creating a governance rule that blocks users over quota

Informing customers of rate limit and quota violations

Like any fault or error condition, you should have active monitoring and alerting to understand when customers are approaching or exceeding their limits/quotas. Your customer success team should proactively reach out to customers who run into these issues and assist them to optimize their integration. Because manual outreach can be slow and unscalable , you should have a system in place that automatically informs customers when they do run into rate limits as their transactions are getting rejected which can cause issues in their applications.

An easy way to keep customers informed of such issues is via Moesif’s behavioral email feature. Instructions on how to do this are below:

  1. Within Moesif, create a user cohort under the User Lookup tab. Add your criteria when to alert customers such as by looking at the number of API calls or when a rate limit header reaches a certain threshold. In this example, we add a filter response.headers.Ratelimit-Remaining < 10

Looking at Ratelimit-Remaining header

  1. Now that we created the cohort, go to Behavioral Emails under the Alerting & Governance tab. From here, create a new email template and design it to fit your requirements as shown below.

Creating a rate limit warning email

Rate limit remaining headers

Besides sending emails, it’s also helpful to inform the customer of any rate limit remaining using HTTP response headers. There is an Internet Draft that specifies the headers RateLimit-Limit, RateLimit-Remaining and RateLimit-Reset.

By adding these headers, developers can easily set up their HTTP clients to retry once the correct time has passed. Otherwise, you may have unnecessary traffic as a developer won’t know exactly when to retry a rejected requested. This can create a bad customer experience.

Rate limit implementation errors

Even a protection mechanism like rate limiting could have errors itself. For example, a bad network connection with Redis could cause reading rate limit counters to fail. In such scenarios, it’s important to not artificially reject all requests or lock out users even though your Redis cluster is inaccessible. Your rate limiting implementation should fail open rather than fail closed meaning all requests are allowed even though the rate limit implementation is faulting.

This also means rate limiting is not a workaround to poor capacity planning as you should still have sufficient capacity to handle these requests or even designing your system to scale accordingly to handle a large influx of new requests. This can be done through auto-scale, timeouts, and automatic trips that enable your API to still function.


Quotas and rate limits are two tools that enable you to better manage and protect your API resources. Yet, rate limits are different from quotas in terms of business use case. It’s critical to understand the differences and limitations of each. In addition, it’s also important to provide tooling such that customers can stay informed of rate limit issues and a way to audit 4xx errors including 429.

Protect your API with Moesif Governance

Protect your API with Moesif Governance

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