Payment Arrangements

Use this page to understand how payment arrangements work, how statuses are assigned, and how arrears, retries, and cancellation are handled.

A payment arrangement is an agreement where a customer repays the outstanding amount in instalments (for example, monthly). The platform sends the customer a payment link. The customer can set up an arrangement based on the payment arrangement rules you configure in Payment Arrangement Configurations.

Key concepts

Payment arrangement statuses

A payment arrangement can be in one of the following statuses. A typical “happy path” moves from Active to Completed, but the other statuses below can also occur.

On track, overdue, and arrears balance

An arrangement is On Track when the amount paid is greater than or equal to the total instalments that should have been paid at a point in time.

An arrangement is Overdue when the amount paid is less than the total instalments that should have been paid at a point in time.

Arrears balance is the difference between:

• the total instalments that should have been paid
• the amount actually paid at that point in time

Cancellation rules

Payment arrangement cancelation

Enable End payment plan if instalment unsuccessful to automatically cancel a customer's payment arrangement after Failed Instalments.

If you enable this option, you can decide how many failed instalments or failed consecutive instalments can occur before the plan is cancelled. If you enable End payment plan if instalment unsuccessful and do not enter either value, the arrangement is automatically cancelled after one failed instalment.

Failed instalment

An instalment is deemed failed if the customer's arrangement is in Arrears at the end of the instalment cycle. This allows the customer enough time to catch up with the current instalment before the next instalment becomes due.

Paid instalment

An instalment is deemed paid if the customer's arrangement is not in arrears at the end of the instalment cycle. This can happen through on-platform customer payments or through an invoice API or file upload that reduces the customer amount due.

Arrears

Arrears is the instalment amount that remains unpaid at the end of the instalment cycle **if ** the Amount Due has not reduced. This is to cater for off-platform payments made directly to you. We consider reduction in Amount Due as an offline payment and will mark the instalment as successful if the amount decreased is equal to or greater than the instalment amount.

Example 1: For a monthly payment arrangement with due dates 1/5/2025, 1/6/2025, 1/7/2025. You have setup Failed instalment to End payment arrangement and have setup 1 Payment retry attempt at 24hr interval

Timeline:

1/5/2025: Customers first instalment fails due to insufficient funds

2/5/2025: Platform automatically retries the payment. This attempt also fails.

1/6/2025: Platform determines this account to be in Arrears. And given the setting "End payment arrangement after 1 failed instalment", the platform will cancel the arrangement.

Example 2: Invoice Amount Due: $500. Monthly payment arrangement of $100 with due dates 1/5/2025, 1/6/2025, 1/7/2025... You have setup Failed instalment to End payment arrangement and have setup 1 Payment retry attempt at 24hr interval

Timeline:

1/5/2025: Customers first instalment fails due to insufficient funds

2/5/2025: Platform automatically retries the payment. This attempt also fails.

15/5/2025: You upload the invoice with a reduced balance of $400.

15/5/2025: Platform marks the instalment as Paid.

1/6/2025: Platform determines this account is **not **in Arrears. Next instalment is charged as per usual.

Self-service payment plan rules

1. Skipping the next instalment (done by customer self-service in the customer portal) does not increase arrears Arrears increases only when a payment fails or is declined.

   Example: If arrears is $200 and the customer skips the next payment, arrears stays $200.

2. Changing frequency or amount (done by customer self-service in the customer portal) does not change arrears If the customer updates the payment frequency or instalment amount through self-service, arrears stays the same because it is still the same payment plan.

   Example: If arrears is $200 and the customer changes from $100 weekly to $450 monthly, arrears stays $200.

Pause invoice rule

1. Pausing an invoice does not change arrears If an invoice is paused, the arrears balance remains unchanged during the pause period.

   Example: If arrears is $200 and the invoice is paused for one month, arrears stays $200.

Payment retry rules

Failed payments are retried only when the customer still has an unpaid amount in the current instalment cycle.

1. Retry the failed payment when the cycle is still underpaid If the total paid in the current cycle is less than the instalment amount, the failed payment can be retried.

   Example: A $100 instalment fails, and the customer separately pays $70. Because the cycle is still $30 short, the failed $100 payment will be retried.

2. Do not retry when the cycle has already been fully paid If the total paid in the current cycle is equal to or greater than the instalment amount, the failed payment is not retried.

   Example: A $100 instalment fails, but the customer makes a separate $100 payment via the self-service customer portal. Because the instalment cycle has been fully paid, the failed payment is not retried.

3. Do not retry when the arrangement already has enough advance payment If the customer has paid ahead, a failed payment is not retried.

   Example: A $100 weekly instalment fails, but the arrangement already has $250 in advance payment. The failed payment is not retried.