Customer Payment Terms 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 at the time they place it.

To set up a customer with PrePay, you will need to have:

• A payment processor set up. (see how to connect to stripe)
• a credit card on file for the customer
  • The customer can enter in a credit card on their portal under "My Account"
• For the customer to be charge automatically, in the customer settings, you need the Terms set to "PrePay" and the Payment Method set to "Credit Card" (see below)
• Once set up, the customer will be charged when they submit an order and it is processed. 

Customer > Edit > Payment Preferences /Payment Methods

Note: 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. 

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: 

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.

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:

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