⏱ 2 min
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 such as reminders are generally handled by Ratepay.
- Buyer decides to to pay via "Open Invoice"
- Seller sends a PAYMENT_REQUEST / Authorize transaction request 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 / Capture transaction 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 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.