Tip #230 – Understanding the Different Methods of Payment


Tip #230
Understanding the Different Methods of Payment

Below is the list of methods of payment flowerSoft allows…

#1 – Credit Card
Selecting this method of payment forces you to enter a credit card number to obtain an approval for the total of the order.
Once an approval is obtained, the order’s total amount cannot be changed.
If a change affecting the approved total is required, you must refund the original approved amount before you make any changes to the order that will affect the total of the order.
You do this by selecting the Reverse and Update option while viewing the order that needs to be changed.

If the change will not affect the total of the order, for example the recipient’s phone number, then you can just update the order and make the change. There is no need to use the refund and update option.
Orders paid with the credit card method of payment must be paid in full. There cannot be an outstanding balance on these orders.

#3 – On Account
Use the On Account method of payment only for customers with “house” accounts.
If the customer does not have a “house” account, flowerSoft will not allow you to use the On Account method of payment.
Orders with the On Account method of payment cannot have a payment recorded when the order is first entered into the system.
Orders with the On Account method of payment will show up in the customer monthly (or bi-monthly) statements.
Any payments received towards an order with an On Account method of payment, should be recorded through the A/R module.
Do not change an order’s On Account method of payment to a different method of payment in order to pay it.

#4 – Cash
Use the cash method of payment only when actual cash is received from the customer to pay for an order.
This can only happen if the customer comes into the store to place the order (a walk-in order) and pays you with cash.

#5 – Check
Same as with cash, this method of payment can only be used if the customer hands you a check in person.
This is not the same as checks received via US Mail as payment on account, which have to be entered through the A/R module.

#6 – COD
Collect on Delivery or COD should only be used if your driver is collecting the monies due for an order when he or she makes the delivery.
COD is one of the 4 methods of payment that allow you to have a balance due on an order. Do you know what the other 3 are?

#7 Pay on P/UP
Similar to a COD. Use this method of payment when the customer is coming into the store to pick up the order and pay for it at that time.

#8 – Gift Cert.
A paper gift certificate issued by your store. Not a gift card.
Use the Gift Cert. method of payment only if the amount of the gift certificate is greater than the total of the order.
If the amount of the gift certificate is less that the total of the order, you must use the split method of payment and then use the gift certificate as one of the payments in the split.

#9 – Split
Use the Split method of payment when more than one method of payment is being used to pay for an order.
For example, cash and a credit card. Or if several different credit cards are being used to pay for an order.

B – Barter
Use this method of payment of you are trading products or services that you sell for the customer’s products or services. No cash exchanges hands.

C – Courtesy
Similar to COD and Pay on P/Up in that it allows an open balance.
Normally used on orders for family members or good friends. Must be paid in the same manner that CODs and Pay on P/Ups are paid.

D – Debit Card
Same as a credit card for most of you unless you have a Genius device that will allow the entering of a PIN number.
Avoid otherwise.

E – E-Gift Card
Same as a Gift Certificate except that the information is kept in your computer (no paper) and usually a password is required.
E-Gift cards can be replenished through a sale.

N – No Charge
A No Charge method of payment should only be used when you are not collecting any monies from the customer.
In other words, you are giving them the merchandise for free.
Normally used when replacing an order that did not meet the customer’s expectations. Will normally require a password.

P – Prepaid
Use this method of payment when the monies have been collected from a source outside of flowerSoft.
For example, orders placed through your web site and paid for with a credit card, may have been pre-approved by the time you enter the order into flowerSoft.

Y – Paypal
Use this method of payment only if you accept Paypal.

Notes:

The only methods of payment that allow a remaining or outstanding balance are:

  1. COD
  2. Pay on P/Up
  3. Courtesy and
  4. On Account

All other methods of payment require that the order be paid in full.

You may occasionally have situations where an order that was paid for has to be changed in a way that it will affect the existing total of the order.
If the order was paid with a credit card, the only way to accomplish this is with a “Refund and Update” maneuver. You refund the original amount charged to the customer and they you get a new approval for the new total of the order.

Orders paid for with any other method of payment can be changed at any time as long as they are changed on the same day the order was entered.
Orders with an ON ACCOUNT method of payment can be changed anytime before the statement containing the charge for the order goes out to the customer.
Even after the statement goes out, the order can still be changed but a new statement will have to be sent to the customer.

When an order needs to be changed on a date different that the original order date, all changes to the monies collected will be reflected on the order’s original date.
For example, you have an order for $100 that the customer paid in full but will not be picked up or delivered until tomorrow.
Now, the day after the customer calls you and wants to add something to the order, making the order total $150.
The customer comes in and pays the additional $50 in cash.
If you had kept the method of payment as cash, the new total will be reflected on the date the order was entered. In other words, the cash collected for that date will show an additional $50.
In cases such as that, when you have to make a change that will affect the total of the order and you want the additional monies collected to be reflected on the date collected, you should change the method of payment to COD or Pay on P/UP and leave the original amount paid intact.
The monies for the original date will remain the same and when you do pay the COD or Pay on P/UP the new monies collected will show up on the date they were collected.

Changing a method of payment after the order has been saved will require that a password be entered.

 

 

 

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