# Open Invoice

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⏱ 2 min
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👤 Merchant Onboarding Team (Marcel K.)
###### Paying by invoice is by far the most popular payment method among German online shoppers.

## Description

Open Invoice is a payment method that enables customers to purchase goods or services on credit and pay at a later date.
With Open Invoice, customers receive an invoice[1] detailing the amount owed, payment terms, and due date.

When a customer selects Open Invoice in your checkout, Ratepay performs a real-time risk check.
The advantage of using Open Invoice is that it can improve cash flow for both the buyer and you as seller:

- For buyers: They can purchase goods or services without having to pay for them immediately, which can be beneficial for managing their finances.
- For sellers: They can offer credit terms to their customers, which can lead to increased sales and customer loyalty.


[1] Ratepay offers the service to send Invoices to the buyers. [Further correspondences](/docs/legal/a_legal_requirements_for_the_integration/customer_correspondences/correspondences_from_ratepay/) such as reminders are generally handled by Ratepay.

## Process in a nutshell

- Buyer decides to to pay via "Open Invoice"
- Seller sends a [PAYMENT_REQUEST](/docs/developer/api_integration/payment_1.8/payment_api_documentation/the_ratepay_gateway_operations/place_order/payment_request) / [Authorize transaction request](/apis/payment/openapi/payment_api/transaction-management/createtransaction) to Ratepay with the buyer-, shopping basket- & payment data
- Ratepay responds, if this transaction has been accepted or rejected
- In case of a...
  - rejection, the reason should be shown & the buyer should choose another payment method
  - acceptance, the seller should inform the buyer about the successful transaction
- When the seller sends the goods, a [CONFIRMATION_DELIVER](/docs/developer/api_integration/payment_1.8/payment_api_documentation/the_ratepay_gateway_operations/follow_up_operations/confirmation_deliver/) / [Capture transaction](/apis/payment/openapi/payment_api/capture/capturetransaction/) request must be sent to Ratepay.
  - This starts the contractually agreed time for the payout to the seller & the claim will be transfered to Ratepay,
  - an [invoice](/docs/legal/a_legal_requirements_for_the_integration/customer_correspondences/open_invoice/) should be sent to the buyer &
  - the due date for the buyer begins.
- In case of...
  - payment by the buyer, Ratepay will send a payment confirmation
  - no payment by the buyer in the period of the due date, Ratepay will take care of [payment reminder and further correspondences](/docs/legal/a_legal_requirements_for_the_integration/customer_correspondences/correspondences_from_ratepay/).