We’ve been growing our infrastructure (see this post) and our team (just hired another developer this week!) and today we’re happy to release one of the big things our merchants have been asking for to more easily manage their businesses.
Recurring Customer Invoicing
Now you can use Chargify to manage your customers who want to receive an invoice and then pay you by sending a check, a wire transfer, or a bag of gold!
Until now, we’ve been all about managing your business and your customers who pay by credit card.
But over time, a lot of our merchants end up needing to bill some customers by credit card and other customers by invoicing them.
They need to send an invoice to their customer, then collect payment outside of Chargify (usually a check in the mail), and then record that payment in Chargify (which can be a full payment or a partial payment, or sometimes the freedom to just discard an invoice without payment, usually due to some discussion with their customer).
Manage your recurring credit card and invoiced customers in one place!
Invoiced Customers are Usually Larger Customers
As Chargify merchants grow, especially the B2B ones, some find that 75% of their customers pay with credit cards, yet 75% of their revenue comes from their invoiced customers. I asked one merchant what his average credit card customer pays and what his average invoiced customer pays.
His answer: $100 (credit card) and $5,000 (invoiced).
He really wanted to manage both sets of customers in Chargify, and now he can.
Let’s imagine a merchant that offers an online system to help medical offices manage their patients.
They start out reaching small medical offices that are willing to try something new. Those customers are happy to pay with a credit card. Let’s say the average monthly charge is $200 (base fee plus some per-user fees).
As the merchant grows, they start selling to chains of medical offices and eventually to small hospital groups. They start running into customers who want to pay monthly or quarterly and those customers want to receive an invoice and then send payment by check or wire transfer after 30, 45, or 60 days.
More Reasons for Recurring Invoices
And there’s a reason the merchant likes this, too: those hospital groups are paying $5,000/mo for the merchant’s wonderful software. Our merchant can keep a lot more money by receiving a check or other form of payment from a trusted customer. Although a credit card means faster funds, it also means losing roughly $200 on that sale every month. If you trust your customer to pay, and you can wait 30-60 days to get paid, that adds up to more money in your pocket over the year.
And one last thing is the issue of certain larger customers not accepting credit card purchases above some limit, say $1,999, and wanting such purchases to go through their accounts payable process if you want their business. You won’t lose their business over this – you’ll find a way to send them invoices if that’s what they require! But now it’s far easier because Chargify manages both types of customers.
Recurring Invoicing is Available on Our “Plus” Plan
Invoicing is available on our Plus and higher plans. Invoicing is also available on our $0 Test plan so your can try it before you buy.
Please let us know if you have any questions, and definitely let our Support folks know if you encounter any problems. This is a big feature that touches many parts of our app – we’ve tried to test for just about everything, but we may have missed something.
More Info / Invoicing Documentation
Here’s the documentation for Invoicing.
Happy (billing) trails