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.

PrePay

Prepay means the customer must pay for the order before they can checkout.

Update Terms to Prepay and add Payment Method

Customers with Prepay terms must have a saved payment method to complete their order. Follow the steps below to ensure they’re required to add one and pay at checkout.

Customer > Edit > Payment Preferences /Payment Methods

Complete the steps in this order:

1. Toggle on the Credit Card option
2. Toggle on the “Required” button
3. Update the payment terms to Prepay.
4. Press “Save Payment Preferences” 

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. 

Go to 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: 

When a customer has more than one payment method, they will be able to choose which payment method they would like by setting a default in their portal menu under Payment Methods.

To select the default, customers will need to click on the star next to which payment method they would like.

Net Terms

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 Terms including, Net 7, Net 15, Net 21, Net 30, and Net 45. Each number corresponds to the number of calendar days after the ship date 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)

Due 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, 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!)

Prepay + Required = using the required payment method

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 either by customer or by batch.

Per Customer:

1. Click on the Invoice number
2. At the bottom go to "Create Payment"
3. Select the payment method you'd like
4. "Paid" should now display at the top of the invoice

Batch Payments:

1. Select Payment Due Today or Payment Overdue tab on the orders screen
2. Check which invoices you want to run.
3. Select Batch Actions > Create Payments

Confirming Payment

Once you have received payment a PAID will show on the invoice and on the balance due column after it has gone through. ACH will show pending until it funds have been verified (1-3 business days).