Customer Payment Terms, Methods and Creating Payments
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.
Overview:
PrePay
Prepay means the customer must pay for the order at the time they place it.
Note: To set up a customer with PrePay, you will need to have a payment processor enabled first.
WARNING:
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 (because in that delivery method setting the price is "live shipping price") then the order will be processed, but the customer will not be charged.
Update Terms to Prepay and add Payment Method
Having terms set as Prepay requires that the customer also has a payment method on file to pay for the order when they place it. Follow the steps below to ensure that your customer is required to add a payment method and pay when they place an order.
Customer > Edit > Payment Preferences /Payment Methods
Complete the steps in this order:
- Toggle on the Credit Card option
- Toggle on the “Required” button
- Update the payment terms to Prepay.
Press “Save Payment Preferences”
NOTE: if you try to update the payment term first and hit save, it will not work. You need to have a payment method required to save the Prepay terms.
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.
Update Payment Method
You can send your customer a link directly or an email to request they update their payment method.
In Payment Method section > you will need to go to the Credit Card setting > 3 dots > Request new credit card
This can be sent as an email to the contacts associated with the account, or copy the link directly in the button below and you can send the link how you choose.
You can also enter the CC information manually once you save this payment method, if you refresh the page, the area to enter the CC info will appear as this:
Net Pay
Net gives the customer a certain amount of days after the order is placed to pay for it.
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.
If you have a payment method on file (CC or ACH) you can charge them on the due date if the customer as agreed to that arrangement. (see below)
Pay on Receipt
Payment is due when accounts receive the invoice. Often this would happen at the same time as the delivery or shipment. Rather than paying when an order is placed, accounts are charged once the product is ready and out the door. Typically users would be charging the customer once the order is fulfilled.
Payment Method Required
You can require a customer to have a payment method on file (only credit card right now), even if the customer has payment terms . You can toggle on the requirement in the Payment method section.
When this is enabled, a customer can’t place an order in the portal until they update the payment method. This is especially helpful if you have an agreement with your customers that you will charge them on the terms date. Then you don’t need to chase them down. (an Auto Pay feature will be coming soon!)
Create Payment
If a customer is on Terms or Due on Receipt, you can charge them once the order is fulfilled on the due date. There are two options:
Per Customer:
- Click on the Invoice number
- At the bottom go to "Create Payment"
- Select the payment method you'd like
- "Paid" should now display at the top of the invoice
To set up ACH as a payment option see this help article