Upfront Payments is a new feature introduced by Ordermentum that allows Suppliers to hold payment for your order as soon as it’s placed. This ensures smoother transactions, especially in industries where order quantities may change after the initial payment, like fresh produce or meat.
Table of Contents:
How does Upfront Payments work?
When you place an order, the payment is held upfront, meaning that Ordermentum ensures the funds are available before the supplier begins processing your order.
Example Workflow
Steps on How Upfront Payments Work
Order Created:
You place an order with a supplier, and the initial order value is calculated (e.g., $220).
Upfront Payments Debits Order Value:
Ordermentum debits the order value from the venue's account and holds the funds in a "Holding Balance" while the order is processed.
For details on how to view the holding balance, check out our transaction log guide here.
Order Placed:
The order is successfully placed if the transaction is approved, and the supplier can begin production.
Note: If the payment fails, the order will fail to create.
Changes to the Order Value:
If the order value increases (e.g., you request more items):
Ordermentum will charge the difference to your account. The additional amount will be added to the total held and then settled once the order is completed.If the order value decreases (e.g., you remove items from the order):
The remaining balance will stay in your Holding Balance, and it will either be refunded or used for your next order.
Order Completed:
When the order is completed, the funds in the Holding Balance (including any changes made to the order) are settled with the supplier.
If there is no change to the order, the full amount from the Holding Balance is used.
If the order increased, the Holding Balance plus the difference is used.
If the order decreased, the reduced amount is used, and the rest remains in the Holding Balance for future use.
Frequently Asked Questions
As a Supplier, how do I setup Upfront Payments?
To enable upfront payments, your customer needs to have to following
A Credit Card added to their customer account
Invoice Frequency under Payment Terms is set to 'On Place'
You will then see an option to enable 'Hold Payment Upfront'
What happens when the order value changes?
If my order value increases:
If your order increases in value (e.g., you’ve requested more items), Ordermentum will automatically charge the difference to your account. You don’t need to do anything – the system will charge your payment, and the new total will be combined with your existing held balance to complete the order.
If my order value decreases:
If your order decreases in value (e.g., you’ve received fewer items), the difference between what was originally charged and the new total will remain in your wallet. The order will be marked as paid, and the supplier will receive the adjusted payment.
As a Venue, how does this affect my payment records?
When payment is taken upfront for an order, you will see the transaction listed in your bank account as “Supplier Name <Unique reference>”.
Eg: ZAI*OM + Supplier (9 char limit) + Unique 5-char ID
Example:
ZAI*OM Ordrmentm Z6X1A
What if there's an issue with the final charge?
If there’s a problem with charging the additional amount (for example, if the charge for an increased order value doesn’t go through), the order will remain unpaid. In this case, the supplier may reach out to adjust the order back to the original amount or retry the payment.