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. This amount must align with your merchant processor's "Maximum Ticket" to avoid velocity errors in InvoiceSherpa.

_{A "Velocity Error" is the error notice that may appear in InvoiceSherpa when your payment processor is unable to process a charge due to an account exceeding the processing limit. These limits vary based on the business's processing track record and are set by the Processing Partner. They're usually set at the transaction, daily, and monthly levels. Hope this helps!}

_{Show eCheck first:}

Upon activation of this feature, eCheck/ACH will take precedence for invoice payments, with credit cards being available as a secondary option. 😊

_{Store payment method by default:}

• Please consider checking this box if:

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

  • You aim to enhance client convenience by enabling seamless payment processes, eliminating the need for them to repeatedly input payment information when clicking "Pay Invoice".

    Leave this box blank if:

  • It is not permissible to retain your customer's payment information, even with a PCI-compliant Payment Gateway.
  • You do not intend to use Automatic Payments.

_{Force surcharge when possible:}

Payment processors generally apply a fee of 1.5-4% for processing a transaction, which may be transferred to customers. Activating this option will incorporate the designated percentage surcharge for Credit Cards or eChecks on the invoice.

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

Several US states and Canadian provinces have regulations in place that prohibit surcharges for merchant processing based on industry and fee accounting methods. InvoiceSherpa monitors regions where surcharges are typically prohibited, thus optimising time management. It is advisable to consider enabling this option to avoid imposing surcharges on customers in contentious areas.

Note: Billing addresses are typically provided by customers when they enter payment information into InvoiceSherpa or correspond to the information on file in your Credit Card Preauthorization Form. It is crucial for customers to notify you of any changes to their billing address.

_{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 informs your payment processor that you intend to routinely process credit cards.

To activate this setting, please check the checkbox to:

1. Reduce your Daily Sales Outstanding metric (also known as accelerating cash inflow).
2. Establish a policy for receiving payments upon receipt from your clients.
3. Enrol your clients in Automatic Payments to facilitate seamless transactions.

Enabling this setting does not automatically charge your customers (they need to be set up on Automatic Payments).

_{Credit card & E-check surcharge tax code:}

When entering information, please ensure to specify the Tax Code associated with funds collected through the Surcharge functionality in InvoiceSherpa. The Tax Code should correspond to a Tax Code in your Accounting Platform for the proper application of any sales tax rate.

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

_{Credit card / E-check surcharge percentage:}

If you are considering the implementation of a Credit Card / E-check Surcharge, you can utilise this field to specify to InvoiceSherpa the amount you wish to enforce per transaction. This amount typically corresponds to the percentage retained by your Payment Processor.

* For example, if your Processor fees are 2.9%, then you should input 2.9 or 3 in this field.

_{Credit card / E-check surcharge item:}

This functionality facilitates the allocation of funds from Credit Card / E-check Surcharges to the appropriate destination within your accounting software. Harmonise the content of this field with your accounting workflow by referencing the bank account name (e.g. Chase Bank) or specifying the income category (e.g. "Other Income"). If you require assistance, we recommend consulting your accounting software to identify income sources and destinations (bank accounts) and to ensure the correct allocation of fees or service charges on invoices.

_{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 is not related to payment processing, but rather to the process of payment posting. InvoiceSherpa does not handle monetary transactions or fund transfers to your bank account. Posting a payment on the accounting platform entails recording the payment operation and updating the invoice status to paid.