Accepting payment on invoice in the online shop

Buying on invoice is the most popular of all payment methods in e-commerce and considerably reduces order cancellations in your online offer. At the same time, this payment method involves a high risk of default and manual intervention for you as an online trader. Several risk management services offered through our PAYONE Platform help you to meet these challenges and to automate your business processes.

Enable your customers to use the most popular of all payment methods

Studies clearly demonstrate that cancellation rates in online shops drop by up to 80% if customers are offered to pay on invoice. Benefit from this potential and increase your sales.

Efficient protection against payment defaults

Offering to purchase on invoice bears the risk of non-payment. Consolidate the opposing objectives of sales optimisation and risk minimisation. The Protect module of the PAYONE Platform provides a professional and fully integrated risk management system to guard you against payment defaults and fraud.

Fully automated allocation of incoming payments

With the Accounting module, manual processes are no longer required: Account statements are automatically retrieved and processed. In general, up to 99% of the payments received  are allocated to the corresponding receivables and posted to the customer account in a fully automatic process. Upon request, PAYONE will take care of elucidating and allocating the remaining cases.

Integrated debtor management including dunning and encashment

The optional modules of the PAYONE Platform enable you to automate all processes from end to end: From subscription handling and invoicing to transaction bundling to dunning and encashment processes.

Banking connections throughout the whole of Europe

The PAYONE Platform enables you to handle open invoices throughout Europe in a fully automated process. In order to facilitate this, PAYONE supports cross-border settlements via SEPA as well as all relevant national payment formats of a large number of banks throughout Europe.

Process for payments on invoice

Payments on invoice via the PAYONE Platform are processed in a fully automated manner. Upon request, the receivables submitted are first analysed by the risk management services of the Protect module in order to minimise your risk of non-payment. If the result is positive, an open receivable is created. You have the option to send out invoices to your customers by conventional mail or e-mail using the Invoicing module.


Automatic payment allocation and debtor management

The Accounting module of the PAYONE Platform offers comprehensive debtor management functionality which is seamlessly integrated with the Payment module and which monitors all payment movements. Intelligent algorithms and scoring procedures are used to automatically allocate 98% of all received transfers to the corresponding receivables items. All receipts of payment are reported to your systems. If the system is not able to allocate a received payment because the purpose that was entered is incorrect, you have the option to assign the receipt of payment within the PAYONE Merchant Interface (PMI) manually. Upon request, PAYONE will provide the manual assignment for you. Learn more about the Accounting module.


Selecting the handling of payments

You can choose to process all payments via sub-accounts at your principal banks or collectively via the PAYONE Collection Service under a factoring model.


Banking connections throughout the whole of Europe

The PAYONE Platform enables you to handle open invoices throughout Europe in a fully automated process. In order to facilitate this, PAYONE supports cross-border settlements via SEPA as well as all relevant national payment formats of a large number of banks throughout Europe.


Transactional operations for every type of business transaction

The PAYONE Platform supports all relevant transaction operations and makes them available across all payment methods. Because the Accounting module of the PAYONE Platform disposes of integrated business logics which allow handling payments on invoice like an online payment method (e.g. credit card). This means that the module supports all transaction operations and automatically posts them to the customer's account (booking, pre-authorisation, capture, multi partial capture, recurring payments). For this, the PAYONE Platform automatically extracts the customer's account number from the incoming payment. Manual processes are completely eliminated.


Minimising payment defaults

To minimise payment defaults, the PAYONE Protect module provides you with comprehensive risk management services. This allows you to guard yourself against fraudulent transactions and to restrict the payment on invoice to preselected customer groups based on credit assessments. Learn more about the Protect module.


Dunning and encashment for overdue receivables

The Collect module enhances the functionality of the PAYONE Platform by a fully automated receivables management. Should you not receive your customer's payment on time, you can let the PAYONE Platform handle all dunning and collection processes for you. Learn more about the Collect module.


Currencies

The PAYONE Platform supports virtually all leading international currencies.


More options

Use the entire range of PAYONE Platform services for processing payments on invoice.


Connection & integration

For connecting to existing e-commerce systems, the PAYONE Platform is equipped with comprehensive interfaces. You can use PAYONE's standardised extensions for an easy integration to leading shop and ERP systems.

Optimised accounting

The Accounting module within the PAYONE Platform seamlessly monitors all payment movements and posts them automatically in the debtor management for your accounting. Received payments and collective credits are automatically assigned to the open items. In order to do this, the system collects and processes settlement files such as bank statements or EPA files (Electronic Payment Advice) for credit card payments. This guarantees an automatic detection of chargebacks which can then be processed according to your individual specifications. Learn more about the Accounting module or request a quote now.

Standardised processes for all payment methods

Each payment method has its own logic and supports various different transactions. The higher the number of payment methods offered, the larger the number of processes and distinctive features you need to consider. The PAYONE Platform is designed to take care of this complexity. Our platform offers consistent, perfectly harmonised processes across all payment methods. One of the benefits for you as a merchant is the simple integration via an interface which allows you to implement new features with little effort. Learn more about our Integration options or request a quote now.

Dispatching of invoices by e-mail or conventional mail

The invoice creation and dispatching functions are important components for a fully automated payment process provided through the Invoicing module. The Invoicing module allows to automatically generate and dispatch invoices to the customer while a payment transaction is processed. You can opt for a customised invoice design and freely select the mode of delivery – digital in form of a PDF or via conventional mail. Learn more about the Invoicing module or request a quote now.

Automated payment allocation

A customer transfers 50 euros indicating "Order" as the purpose. But just which order does he mean? With the Accounting module, manual processes are no longer required: Account statements are automatically retrieved and processed. Special algorithms are used to automatically assign more than 98% of all payments to the corresponding receivable. Upon request, PAYONE will take care of elucidating and allocating the remaining cases. This will help you to reduce the invested time and money and allows you to be sure that each payment received reaches its destination. Learn more about the Accounting module or request a quote now.

Safe sales increase

Payment on invoice is one of the most popular payment methods among consumers, but it bears the highest risks for you as a merchant at the same time. The PAYONE Platform provides you with a solution for this dilemma. It allows you to increase your sales without having to take unnecessary risks. The Protect module includes a number of risk checks which can be combined according to your particular needs using customisable sets of rules. Should you encounter any payment defaults despite your risk management, the Collect module can handle the entire dunning process and debt collection transfer for you. Learn more about the Collect module or request a quote now.

Automatic returning and credit procedure

Returns are an inevitable part of the mail-order business and require sophisticated credit procedures – after all, your clients expect their money back quickly and without any inconveniences. The Accounting module of the PAYONE Platform allows you to execute automated refunds in the form of a bank transfer. To do this, the Accounting module automatically extracts the consumer's account number from the transfer that was received. Funds can also be returned to a different account without any problems. PAYONE also supports domestic payment methods abroad, such as CIRI in Belgium, CFONB120 in France or DTAUS in Germany, and provides you with a centralized solution in almost the entire EU.  The PAYONE bankaccount check offers an extra security layer by checking the account details and by proactively signalling potentially problematic accounts. This service is available for a large number of countries.  Learn more about the Accounting module or request a quote now.

Aggregated micropayments

Billing of small amounts is often a big challenge for online traders. The smaller the billed amounts, the higher the percentage of the costs for handling the payment. If there is a series of payment transactions within a short period of time, the merchant is even more likely to incur high charges through chargeback fees. In this scenario, you are confronted with complex requirements because your customers expect correct and transparent processes at all times. The Billing module of the PAYONE Platform provides you with the business logics to aggregate micropayments and bill them collectively. Learn more about the Billing module or request a quote now.

Administration of subscriptions

The Contract module of the PAYONE Platform provides you with a comprehensive contract and subscription management. Payments are handled in a fully automated process according to your individual specifications. This allows you to outsource these processes entirely to the PAYONE Platform. Even complex and multi-level models can be mapped easily using individual terms, prices and notice periods. Learn more about the Contract module or request a quote now.

Dynamic payment method control

The higher the number of payment methods offered to your customers, the higher the conversion rate. Studies clearly demonstrate that customers tend to cancel the payment process if they are not offered their preferred payment method. Should there be any risk indicators or doubts about a customer's capacity to pay, however, it is indispensable to restrict this customer's choice to secure payment methods only. Ideally, this type of preselection is carried out in the background based on intelligent sets of rules which are tailored to your particular business and which can be adapted at any time. The Protect module of the PAYONE Platform provides an integrated risk management system and a variety of checks to efficiently minimise payment defaults and fraud. Learn more about the Protect module or request a quote now.

Couldn't find the right solution?

You did not find the right solution? Then use our professional services to let us know what your challenges are. Our consultants can draw from the know-how and best practice solutions acquired during many years of experience in a variety of client projects. We will be happy to advise you and to find the right solution for your project.

Facts about purchases on invoice

  • Only 45% of all merchants offer payment on invoice
  • Paying on invoice is the most popular payment method in B2B
  • Merchants confirm highest acceptance among their clients for payment on invoice
  • On average, the cancellation rate drops by 81% after introducing payment on invoice
  • 45% of all traders are willing to pass through a service provider if the terms are deemed reasonable

Quelle: ibiresearch (Zahlungsabwicklung im E-Commerce 2011, E-Payment-Barometer – Fokus: Zahlungsausfälle 2011, Erfolgsfaktor Payment 2008)

 

 

Ratgeber / Whitepaper Rechnungskauf

Source: http://www.shopanbieter.de/knowhow/rechnungskauf.php

EHI study: Purchase on invoice is the customer's predominant choice in German e-commerce

"German online shoppers prefer paying on invoice for the products and services they acquired online. This method is followed by credit card payments and direct debit in second and third place. This is the result of a recent study on online payment conducted by the EHI Retail Institute in Cologne. The study claims that purchasing on invoice has a market share of 25.1%, making it the leading payment system in German online trading. 16.9% of all purchases were conducted by credit card, while in 15.6% of all cases, customers opted for direct debit to pay for their purchases. Other relevant market shares were found for PayPal, prepayment, financing, cash on delivery and SOFORT Banking."...

Purchasing on invoice boosts revenues

"The current special analysis of the economic index e-KIX that is published by ECC Handel discussed the topic of payment processing in online shops and comes to the conclusion that many traders freely forego sales by providing unattractive payment methods. The study found that 27.1 percent of all online traders choose to guard themselves against payment defaults by not offering payment on invoice and/or direct debit at all. Figures compiled in early 2011 for the e-commerce guide could be interpreted in a similar direction: The figures show that 83 percent of all online shops offer prepayment by bank transfer. This payment method, which is unpopular with most customers, remains the most widely used payment option on the internet. According to the figures in the e-commerce guide, 45 percent of all merchants offer payment on invoice. The authors of the study point out, however, that this payment method is often limited to B2B online trading. The online merchants' fear of payment defaults is comprehensible. Offering the option to purchase on invoice would go down very well with most customers though. A 2011-study conducted by the mail-order business association bvh confirms that 40 percent of online shoppers prefer buying on invoice to all other payment methods such as prepayment, PayPal or cash on delivery. This result is consistent with a poll published in the Shopbetreiberblog: If a shop only offers prepayment, 79 percent of the users look for an alternative (i.e. a different provider). Where both prepayment and invoice are available, the cancellation rate drops to 10 percent and 84 percent of the customers choose to pay on invoice. "The online traders waste tremendous potential, because buying on invoice and direct debit are the most popular payment methods in German e-commerce," says Beate Rank, CEO of Rakuten Deutschland, one of the partners of the e-KIX."...

Source: www.shopanbieter.de/news/archives/5610-rechnungskauf-ist-ein-umsatztreiber.html

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Minimise your payment defaults

Achieve the perfect balance between few payment defaults and  high turnover: The Protect module automatically monitors all payment processes in real time to detect possible fraud patterns.

All payment methods from a single source

Choose from all relevant payment methods in e-commerce and offer the perfect payment mix – both nationally and internationally.