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As Rocketflow stated, 95th percentile or per-GB billing are pretty much the two standards in the industry. Some hosts also do "average mbit", but it is precisely the same math as per-GB billing, just expressed differently.
95th percentile can be fairly confusing, but in the end it's typically a pretty fair tradeoff between hosts and their customers. A host must keep enough capacity around for you to burst at whatever rate you need with zero notice - this capacity isn't "free" for the host, and must be paid for - thus you essentially get 1.5 days (in a 30 day month) of "free" bandwidth - this "free time" is your highest traffic period.
The best non-technical way I've found to explain this is "average peak billing" - you get billed based upon your average peak during the week is almost always what the end-game is.
-Phil
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