Customer Payment Terms
When setting up payment methods for customers, you will have a variety of options to choose from. In this article, we will go over the differences between those methods and how to set them up, so they work properly.
The first method is PrePay. To set up a customer with PrePay, you will need to have a credit card on file. Once set up, the customer will be charged as soon as they submit an order and it is processed.
In order for PrePay to work properly, a customer must have a delivery method with a known price (either $0 or some other known amount). If the delivery price is TBD then the order will be processed, but the customer will not be charged.
If a customer's card is declined, the order will be declined. A customer can fix this by updating their payment method directly from the portal.
Net pay is designed to charge customers for multiple invoices at once.
There are 5 different terms for Net Pay including, Net 7, Net 15, Net 21, Net 30, and Net 45. Each number corresponds to the number of calendar days after dispatch that the customer should be charged. For example, in a Net 7 payment term, the customer should submit their payment one week after the order is shipped.
Pay on Receipt:
Pay on receipt is the most basic payment term.
When the customer is ready to pay and settle their balance, simply open up their invoice and add a payment method. If you select cash or check, RoasterTools will immediately mark the invoice as paid.
To learn more about reverting unintentional cash or check payments check out this article.