My small business has a mix of B2B and B2C clients. When a new client signs up we always ask them what their preferred payment method is. Most people reply with “credit card” or ‘bank transfer’. But on several occasions now clients have replied with “invoice”.
What on earth are they thinking? An invoice is a document detailing what they are being billed for. 100% of our clients get an invoice, but it is not a payment method.
Why do people think that an invoice is a payment method??
You must log in or register to comment.
They are talking about push vs pull. Send me an invoice and I will use my method and timing of choice to pay you.
They probably want to avoid you pulling an ACH or credit card payment by keeping that data on file.
I’m in the merchant services industry and yes, you are correct that some believe “invoice” is a payment method. When someone says that I usually add something like, “Ok, so your customers pay their invoices with cards, checks, or both?” Most of the time, I see the lightbulb go on after hearing that.
I would take that to mean “send me an invoice and I might pay you”.
exactly. They are saying “terms” like 30 days to pay an invoice or something like that. and you asked them what their preference was.
They want you to extend some sort of terms is what I would assume. Send the invoice and then I’ll get around to paying it eventually but I need the product ASAP lol…
Possibly by mail is my guess. I have clients that prefer it. Granted, they are older and wish to write a check.
Ever been to Europe? All of my clients use “invoice” as their payment method. Usually you get paid within 2 weeks. The bigger the client, the longer it takes (2 months or more is not unusual either).
Here, it seems absolutely absurd to pay via credit card or paypal for any professional services. Especially in B2B.
My digital invoices technically allow for payment through a button click, but I still agree that your clients are using the word invoice wrong.
They are saying ‘bill me’. Now you say back, “we don’t do that”
People are dumb. They’re asking for terms. When they ask for “invoice”. You just respond “We invoice all orders. But we do require payment to proceed with an order. You can either pay via credit card or via bank transfer. We like to have this noted on your file because otherwise we have to ask every time you place an order.”
A lot of people are just dumb OR they’re so used to dealing with vendors they have long relationships with that they forget or are unaware that steps were done when that account was open.
My invoices have “payment” options included in it. They are maybe used to these type of invoices
Play their game.
“Okay, I can have a COD invoice issued”
We sent invoices on the last day of the month for next month’s service. Payment terms: “Due Upon Receipt”.
Our clients flipped at first. Obviously they didn’t read the service agreement. They complained about paying before they received service until I explained service like telephone, mobile, Internet bill the same way.
I found after we made calls for 3 months in the 3rd week of the month, we started receiving payment quicker; ~50% before end of wk 3 and ~75% during wk 4.
Invoice is the equivalent of “NET” terms, whether it be via ACH, Credit Card, etc.
Due upon receipt is one way you can deal with ambiguity.
I’ve heard this from customers. when I tell them there is an additional $10 invoice fee they generally figure out how to pay it without an invoice
They are basically right and you are wrong. Perhaps a deep in the weeds law student might see a difference and prefer that they say “bank transfer”.
But it is how I would expect a client to respond to this question. I’m not sure why this bothers you