As part of subscription management and automated billing, it is essential to understand the distinction between an automatic payment method and an offline payment method (also known as a non-automatic payment method). This distinction directly impacts how invoices are processed in ProAbono.
Payment Methods in ProAbono
In ProAbono, each customer has only one default payment method.
From the customer portal, they can enter or modify an automatic payment method at any time, but they can only have one set as their payment method.
What is an Automatic Payment Method?
An automatic payment method allows ProAbono to handle invoice payments completely autonomously. This means that ProAbono can initiate a payment, automatically verify whether the payment was successful or failed, and track billing accordingly, without any manual intervention from you or the end customer.
Examples of automatic payment methods:
- Credit card: Payments are processed automatically through a secure transaction using CB, VISA, Mastercard, American Express, etc.
- SEPA Direct Debit: Direct debits are automatically processed on the basis of the customer’s authorization.
These payment methods enable real-time tracking and simplify subscription management, thereby reducing the risk of unpaid invoices.
What is an Offline Payment Method?
Conversely, an offline payment method does not allow ProAbono to initiate a payment or automatically verify if a payment has been made. When a customer selects this type of payment, you must manually inform ProAbono that the invoice has been paid, in dispute, etc.
Examples of offline payment methods:
- Bank transfer: The customer manually transfers funds to your company’s account.
- Check: The payment is sent and must be manually processed.
- Cash: The transaction occurs physically and must be recorded in ProAbono.
- Other: Any other non-automated payment method.
In these cases, payment management relies on a manual action from you to ensure invoices are correctly marked as paid.
Impact on Billing Management
Using an automatic payment method reduces administrative workload and improves the efficiency of the billing process. On the other hand, offline payment methods require additional follow-up to avoid delays or errors in updating customer accounts.