Installment billing

There are actually several scenarios where this code may apply:. In reality, though, reason code chargebacks more commonly result from errors in merchant policies or practices, or from cardholder attempting to force an unearned payment reversal through the bank. In this exclusive guide, we outline the 50 most effective tools and strategies to reduce the overall number of chargebacks you receive.

In some instances, it could be argued that the merchant is at least partially at fault for not making sure the customer understood the agreement. Other times, though, the customer may intentionally or unintentionally make false statements. The merchant can recover their revenue if they manage to provide documentation showing that the cardholder agreed to the installment plan as it has been carried out or that any discrepancies have been corrected.

This should then be submitted as part of the representment process. Misreading an installment contract or mixing up dates, for example, can lead to confusion.

Fortunately, these types of chargebacks are often entirely preventable. Merchant missteps, such as not clearly explaining the terms of the installment contract, billing for the installment sooner than promised, billing extra installments, or mislabeling transactions, are all common triggers. Abiding by best practices for recurring billing can prevent these issues.

Care must be taken to ensure the conditions, timeframes, and amounts of installment plans are very clearly and carefully presented and explained. This is doubly important if the business offers installment plans through an outside resource such as a financing company. The more concise and clear the terms of the plan, the less likely a legitimate dispute will arise. For a truly effective strategy, however, it is equally important to dispute cases of friendly fraud.

Contact us today for a free analysis to learn how much more you could save. Download our convenient quick reference cheat sheets. May include finance fees or charges. Invoice Amount. May be fixed or variable based on usage or services. Over Payments. Held as credit and then applied to next invoice when generated. Applied to the final or last open invoice. Typically undefined.

Ongoing until service is terminated. Fixed and pre-defined. Invoice Generation. Invoices are automatically generated one at a time according to schedule and services. Invoices are pre-generated. For more information, see Set up a call center. Set up credit cards as a payment method, unless all installment payments are on account. For more information, see Set up payment methods Call center.

Create call center catalogs. First, set up a payment schedule in Accounts receivable. The payment schedule specifies the number of payment installments and the amount that the customer pays per installment.

For more information, see Payment schedules form. Next, add the payment schedule to the catalog that the call center is using.

The payment schedule then becomes available as one of the payment options in the Sales order form. Select a catalog, and then, on the Action Pane , in the Maintain group, click Edit. On the Action Pane , in the Call center group, click Payment schedules. Next, set the options for installment billing in the Call center parameters form.

In the left pane, click Payment , and then set the options on the Installment plan FastTab. Specify whether an installment payment by credit card is submitted to a processor for authorization on the order date or the date of the first installment. Specify whether charges on the sales order header are applied to the installment plan or to another payment method.

A selected check box indicates that sales orders that have installment plans are shipped complete by default. The number of days before the due date of an installment payment to generate a letter to the customer.

The maximum number of times that an installment payment by credit card can be resubmitted to the processor for authorization if the payment is declined. After the limit is reached, the payment is added to the queue for review in the Installment payments authorization form.

A selected check box indicates that, if the limit that is set in the Reauthorization limit field is reached, the remaining payment balance is due. Next, enable installment billing for specific customers and products. You can also optionally specify which payment schedule to use for each customer or product. On the Payment defaults FastTab, select the Installment eligible check box. Optional: If you want to enable installment payments on account, select the Allow on account check box.