Skip to main content
All CollectionsPaymentsProcessing Payments
Understanding Pay-on-Place vs. Upfront Transactions
Understanding Pay-on-Place vs. Upfront Transactions

The guide covers the differences between Pay-on-Place and Upfront Transactions

Updated over a week ago

When managing payments for orders, it's crucial to understand the differences between Pay-on-Place and Upfront Transactions. Each method offers distinct advantages depending on the nature of your orders and how frequently changes occur after placement. This guide provides a summary of the key differences and considerations to help you make an informed decision.


Table of Contents


Summary of Key Differences

Feature

Pay-on-Place

Upfront Transactions

Requires Credit Card

Requires Successful Transaction to Place Order

Holds Funds in Escrow

Allows Adjustments After Order Placement

Recommended For

Orders with products made to order

Orders with variable/random weight products


Choosing Between Pay-on-Place and Upfront Transactions

When deciding between Pay-on-Place and Upfront Transactions, consider how often changes occur after placing your orders.

  • Use Pay-on-Place if changes to your orders are uncommon, such as with goods made to order. This method ensures funds are available without holding them in escrow.

  • Use Upfront Transactions if changes are frequent, such as with variable weight products. This method holds funds in escrow, allowing for adjustments after order placement.


Additional Considerations

  • Upfront Transactions: These transactions charge the initial order amount. If changes increase the order value, a subsequent charge will be necessary, which could potentially fail.

  • Settlement Timing: Pay-on-Place orders are settled on the day the order is placed, while Upfront Transactions settle on the due date.


Further Reading

For more detailed information on Upfront Transactions, read more here.

Did this answer your question?