Skip to content

Finance charges paid by customers

Finance charges are amounts added to an outstanding balance as a penalty for late payment. They are usually added to a customer’s statement. When the charge is paid by the customer, the payment is recorded in the Receive Payments window.

How finance charges are calculated 

Each open invoice’s due date is calculated using the terms on the invoice which by default is sourced from the Selling Details tab of the Card Information window. The overdue balance is then increased by 1/30th of the monthly charge for late payment for every day it is overdue, where the monthly charge is calculated by multiplying the amount overdue by the % Monthly Charge for Late Payment value you specified on the customer’s card.

If the customer makes a partial payment during the overdue period, the finance charge is adjusted accordingly.

Receiving an error message when you open a finance charge? Contact our support team.