Payment Settings {In-depth Overview}

Helpful Tips for Setting Up the "Payment Settings" Section in Your InvoiceSherpa Account

_{Largest amount to allow credit card payment option:}

Please specify the maximum credit card amount you will authorise for processing customer invoices. Ensure it matches your merchant processor’s “Maximum Ticket” to prevent velocity errors in InvoiceSherpa.

A “Velocity Error” is the error notice that may appear in InvoiceSherpa when your payment processor can’t process a charge because your account has exceeded its processing limit. These limits vary based on your business’s processing track record and are set by the Processing Partner, typically at transaction, daily, and monthly levels.

_{Show eCheck first:}

When this feature is activated, eCheck/ACH will be used for invoice payments first, and credit cards will only be available as a backup. 😊

_{Store payment method by default:}

• Please consider checking this box if:

  • You want to enrol clients in Automatic Payments or Payment Plans.

  • You would like to make payments easier by enabling seamless payment processing, so clients do not need to enter payment details every time they click “Pay Invoice”.

    Leave this box blank if:

  • You are not allowed to store your customers’ payment information, even with a PCI-compliant Payment Gateway.
  • You do not plan to use Automatic Payments.

_{Payment Accounts:}

Within your accounting platform, you have the flexibility to choose the destination account for your funds from a range of options.

Note: This feature isn’t related to payment processing, but to payment posting. InvoiceSherpa does not handle monetary transactions or fund transfers to your bank account. Posting a payment means recording the payment operation and updating the invoice status to paid.

_{Force surcharge when possible:}

Payment processors typically charge a 1.5–4% processing fee, which may be passed to customers. Enabling this option adds the designated Credit Card or eCheck surcharge to the invoice.

_{Disable the credit card option in states where surcharges are illegal:}

Some U.S. states and Canadian provinces prohibit merchant processing surcharges, depending on the industry and the fee accounting method. InvoiceSherpa monitors where surcharges are typically not permitted to improve time management and reduce operational friction. Please consider enabling this option to help ensure surcharges are not imposed on customers in contentious regions.

Note: Billing addresses are typically provided by customers when they enter payment information into InvoiceSherpa or match the details on file in your Credit Card Preauthorization Form. Customers should notify you of any billing address changes.

_{Don't surcharge recurring invoices:}

Enabling this option will allow your customers to avoid additional fees for recurring invoices in your accounting platform.

_{Enable recurring credit card charges:}

This configuration tells your payment processor that you intend to process credit cards routinely.

To activate this setting, please check the checkbox to:

1. Reduce your Daily Sales Outstanding metric to help accelerate cash inflow.
2. Set a policy to receive payments upon receipt from your clients.
3. Enrol your clients in Automatic Payments for seamless transactions.

Enabling this setting does not automatically charge customers—customers must be set up on Automatic Payments.

_{Credit Card & E-Check Surcharges:}

_{Credit Card & E-Check:  Surcharge Tax Code}

When entering information, please specify the Tax Code for funds collected through the Surcharge functionality in InvoiceSherpa. The Tax Code must match a Tax Code in your Accounting Platform so the correct sales tax rate can be applied.

Note: Please leave this field blank if the Surcharge is not enabled.

_{Credit Card & E-Check:  Surcharge Percentage}

If you are implementing a Credit Card / E-check Surcharge, use this field to enter the amount you want InvoiceSherpa to enforce per transaction. This amount usually matches the percentage retained by your Payment Processor.

* For example, if your processor fees are 2.9%, enter 2.9 (or 3) in this field.

_{Credit Card & E-Check:  Surcharge Item}

This feature helps allocate Credit Card/E-check Surcharges to the correct destination in your accounting software. Please align the field with your workflow by using the bank account name (e.g., Chase Bank) or the income category (e.g., “Other Income”). If you’re unsure, check your accounting software to confirm the correct income sources and bank accounts, and ensure fees or service charges are allocated properly on invoices.

_{Credit Card & E-Check: Surcharge Custom Text}

This free text box allows you to enter the label that will be displayed next to the charge. Some customers rename the surcharge to options such as "Technology Fee" or "Convenience Fee"—you may choose whichever label you prefer.

Batch Payments Settings

Enabling this feature lets customers pay multiple invoices in one transaction instead of paying each one separately.