# Preferred payment method discount

Preferred payment method discount

Encourage clients to pay the way you prefer (for example, by direct debit) by
offering a percentage off when they use that method.

Why it helps

 * More clients on direct debit. A small discount is often all it takes for
   clients to save their bank details.

 * Lower fees. Direct debit usually costs you less to process than cards.

 * Fully automatic. The discount is worked out, applied and updated in your
   accounting system for you.


TURN IT ON

 1. Go to Settings → Business → Payment Settings → Billing.

 2. Set Preferred payment method discount to Yes, then confirm with Turn on
    discount.

 3. Choose the Preferred payment method: Direct Debit or Credit Card.

 4. Enter the Discount percent (maximum 10%).

 5. Click Save.

> 


WHEN THE DISCOUNT APPLIES

The discount is taken off the unpaid balance at the moment the client pays with
your preferred method:

How the bill is paid

Discount applied?

Client pays in the portal

✅ Automatically

Client pays when accepting a proposal

✅ Automatically

Automatic payment on the due date

✅ Automatically, when collected

Client starts a payment plan

✅ Applied to the plan

Your team charges the client

You're asked Apply payment method discount? Choose Apply discount or No
discount.

The discount is not applied when:

 * the client pays with a different method

 * the bill is already part-paid in your accounting system

 * the bill is on an active payment plan (unless the discount is being applied
   as the plan starts)

 * the bill has already been sent to GreatSoft or FreeAgent


WHAT CLIENTS SEE

 * Portal: "Paying by {method} takes {percent}% off the unpaid balance of
   eligible bills…" If they choose another method, they're prompted to switch to
   save.

 * Proposals: the preferred method shows a Save {percent}% tag.

 * Payment plans: the plan shows that the discount is included.


WHAT HAPPENS TO THE BILL

 * The bill's line amounts (including tax) are reduced by the discount
   percentage.

 * A $0 line is added to the bill, for example: "Invoice discounted by 5% for
   paying by direct debit".

 * The bill shows a Discounted {percent}% badge.

 * Xero and QuickBooks: the invoice is updated in your accounting system
   straight away. If that update fails, the discount isn't applied and the
   client pays the full amount.

 * No surcharge is added to a discounted payment.