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}

Kindly specify the maximum credit card amount you will authorize to process 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 gateway/merchant 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}

When you activate this feature, eCheck/ACH will be the top priority for invoice payments, and credit cards will be a secondary option. 😊

_{Store payment method by default}

• Please check this box if:

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

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

    Leave this box blank if:

  • It's not allowed to keep your customer's payment information, even with a PCI-compliant Payment Gateway.
  • Not planning to use Automatic Payments.

_{Force surcharge when possible}

Payment processors typically charge a fee of 1.5-4% for processing a transaction, which may be passed on to customers. Enabling this option will add the specified percentage surcharge for Credit Cards or eChecks on the invoice.

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

Some US states and Canadian provinces have regulations that prohibit surcharges for merchant processing based on industry and fee accounting methods. InvoiceSherpa tracks regions where surcharges are typically prohibited, saving time. Consider enabling this option to avoid surcharging customers in contentious areas.

Note: Billing addresses are usually entered by customers when they input payment information into InvoiceSherpa or will correspond to the information on file in your Credit Card Preauthorization Form. It's really important for customers to inform you of any changes to their billing address.

_{Don't surcharge recurring invoices}

By turning on this option, your customers won't have to pay the extra fee for recurring invoices in your accounting platform.

_{Enable recurring credit card charges}

This setup lets your payment processor know that you're planning to regularly process credit cards.

Please select the checkbox for this setting to:

1. Decrease your Daily Sales Outstanding metric (also known as accelerating cash inflow).
2. Implement a payment upon receipt policy for your clients.
3. Enroll your clients in Automatic Payments for seamless transactions.

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

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

When you enter information, just make sure to specify the Tax Code linked with funds gathered through the Surcharge functionality in InvoiceSherpa. The Tax Code should match a Tax Code in your Accounting Platform for the correct 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're considering applying a Credit Card / E-check Surcharge, you can use this field to specify to InvoiceSherpa the amount you'd like to enforce per transaction. This amount usually aligns with the percentage retained by your Payment Processor.

* For instance, 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 setting helps direct funds from Credit Card / E-check Surcharges to the correct destination in your accounting software. Align the text in this field with your accounting workflow by using the bank account name (e.g. Chase Bank) or specifying the income category (e.g. "Other Income"). If you need assistance, consult your accounting software to identify income sources and destinations (bank accounts) and ensure proper allocation of fees or service charges on invoices.

_{Payment Accounts}

You can select the destination account for your funds within your accounting platform from a variety of options. 😊

Note: This feature is unrelated to payment processing, but the process of payment posting. InvoiceSherpa does not deal with monetary transactions or fund transfers to your bank account. Posting a payment on the accounting platform involves recording the payment operation, updating the invoice status to paid.