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Payment terms, explained with the numbers.

Short, sourced answers on card fees, bank payments, Stripe and payment plans, for whoever runs collections.

Terms.

100 entries, each checked against the rule or the processor's own documentation.

Payment plans · 15
  1. Autopay: what it is and what the customer must authorizeAutopay charges a saved card or bank account on a schedule. What the customer must agree to, and the notice rules for changing a debit.
  2. Deposit invoice: what it is and how it shows in the booksA deposit invoice bills part of the price before work starts. What it should say, how the balance is billed after, and how a deposit is recorded.
  3. Deposit vs down payment: what's the difference?A deposit secures a sale before delivery. A down payment is the first part of the price, paid up front, that lowers the balance on a plan. How each works.
  4. Failed payment: why card and bank payments failWhy a scheduled card or bank payment fails, what Stripe's decline codes mean, and what to do when a payment on a plan doesn't go through.
  5. Finance charge: what counts and what doesn't under Regulation ZThe finance charge is the cost of consumer credit as a dollar amount. What Regulation Z counts, what it leaves out, and why a 0% plan has none.
  6. Grace period: what it means on a payment planA grace period is the window after a plan payment's due date before it counts as late. How to set one and how it differs from a credit card's.
  7. In-house financing: what it is and when lending rules applyIn-house financing means a business lets customers pay over time itself, without a lender. When Truth in Lending can apply, and the risks it carries.
  8. Installment plan: what it is and how installments are setAn installment plan splits a fixed total into scheduled payments. How amounts are set, where rounding goes, and how it differs from recurring billing.
  9. Late fee: what it is on a payment plan and what the rules sayA late fee is a charge for a plan payment that arrives after its due date. What it is, where it must be written down, and how Regulation Z treats it.
  10. Payment plan agreement: what it should coverA payment plan agreement sets the total, deposit, schedule, payment method and what happens on a missed payment. A checklist and the federal rules.
  11. Payment plan: what it is and how it differs from a loanA payment plan lets a customer pay a set price in parts on scheduled dates, often after a deposit and with no interest. How it differs from a loan.
  12. Payment schedule: what it is and how to set oneA payment schedule lists every payment on a plan with its date and amount. Frequencies, first and final dates, and a worked example that adds up.
  13. Proration: how to prorate a charge or a refundProration charges or refunds only the part of a period that was used. Three day-count methods, worked examples, and how Stripe prorates subscriptions.
  14. Retail installment contract: what it is and when it appliesA retail installment contract lets a buyer pay a seller over time for goods or services. State law governs it, and federal disclosure rules can apply too.
  15. Truth in Lending Act: when does it reach a payment plan?TILA and Regulation Z require credit disclosures. Who counts as a creditor, how a 0% plan can qualify, and what the disclosures cover.
Card fees and processing · 16
  1. Can you add a surcharge to a debit card payment?Visa's US rules don't allow a surcharge on debit or prepaid cards, even if the customer presses "credit". Louisiana bans them from 1 Aug 2026.
  2. Chargeback: what it is and how a card dispute worksA chargeback reverses a card payment when the cardholder disputes it with their bank. Who starts it, what it costs on Stripe, and the time limits.
  3. Convenience fee vs surcharge: which one can go on a payment plan?A surcharge covers what a credit card costs you; a convenience fee pays for an extra payment channel. Only one can go on plan payments.
  4. Credit card processing fees: what you pay and whyCard processing fees combine interchange, network fees and the processor's markup. What each part is, how pricing models differ, and plan examples.
  5. Friendly fraud: what it is and how to prevent itFriendly fraud is when a real cardholder makes a payment and later disputes it. Why it happens, how it's filed, and what helps on a payment plan.
  6. Interchange fee: what it is and who sets itThe interchange fee is the part of a card payment's cost that goes to the cardholder's bank. Who sets it, what it is on debit vs credit, and examples.
  7. Refund vs chargeback: what's the difference?A refund is money you send back. A chargeback is money the customer's bank takes back. What each costs on Stripe, by card and by ACH.
  8. What is a cash discount? How it differs from a surchargeA cash discount lowers the price for paying another way. Visa's US rules on how to show prices, and why a fee added at checkout counts as a surcharge.
  9. What is a convenience fee? When a business can charge oneA convenience fee pays for an extra way to pay, not for the card. Visa's US rules on when it applies, how much, and why it can't go on installments.
  10. What is a merchant discount rate (MDR)?The merchant discount rate is what a business pays its bank or processor per card payment. How it relates to interchange and Visa's surcharge cap.
  11. What is a service fee? Visa's program for schools, utilities and governmentVisa's US service fee is open only to government, utility and education merchants in set categories. Who can charge it, how it's set, how it's shown.
  12. What is a surcharge? How a credit card surcharge worksA credit card surcharge recovers what a card costs you. How it's calculated, the 3% cap, which cards it covers and how to disclose it.
  13. What is dual pricing? How it differs from surchargingDual pricing shows a card price and a lower price for paying another way. How Visa's US rules treat it, and when it turns into a surcharge.
  14. What is flat-rate card pricing?Flat-rate (blended) pricing charges one rate on every card payment, whatever the card. Stripe's 2.9% + 30¢ worked through a payment plan.
  15. What is interchange-plus pricing?Interchange-plus (IC+) pricing passes each card payment's network costs through and adds the processor's own fee. How it works and how it compares.
  16. What is the Durbin Amendment?The Durbin Amendment caps debit card interchange for large banks and gives merchants routing choice. What it covers, what it doesn't, and the figures.
Bank payments (ACH) · 24
  1. ACH credit: what it is and how a push payment worksAn ACH credit pushes money from the payer's bank account into the receiver's. How it moves, how fast it settles and when the money must be available.
  2. ACH debit: what it is and what the customer authorizesAn ACH debit pulls money from a bank account with the owner's authorization. What the mandate covers, what Reg E requires and how long disputes take.
  3. ACH payment: what it is and how it worksAn ACH payment moves money between US bank accounts on a network run under Nacha's rules. How debits and credits work, how long they take, what they cost.
  4. ACH return codes: what they mean and which ones count against youAn ACH return code says why a bank sent a debit back. The common codes, how Nacha groups them, and the return rates that draw scrutiny.
  5. ACH returns on payment plans: why a paid installment can bounceAn ACH payment can fail days after it looks paid, and a consumer can dispute it for 60 days. What that means for payment plans.
  6. ACH vs wire transfer: what's the difference?ACH and wire transfers both move money between US banks. How they differ on cost, speed and whether a payment can come back, and which suits a plan.
  7. EFT payment: what counts as an electronic fund transfer?An EFT is any transfer that electronically debits or credits a consumer's account. What Regulation E includes, what it leaves out and how ACH fits.
  8. Micro-deposits: how small deposits verify a bank accountMicro-deposits are credits under $1 sent to a bank account so the owner can confirm the amounts. Nacha's rules and how verification works on Stripe.
  9. R01 return code: insufficient fundsR01 means the customer's account didn't have enough money to cover an ACH debit. The deadline, how Nacha counts it and what to do on a payment plan.
  10. R02 return code: account closedR02 means the bank account an ACH debit was sent to has been closed. The return deadline, Nacha's 3.0% administrative level and what to do on a plan.
  11. R03 return code: no account or unable to locate accountR03 means the account number is valid in form but doesn't match the customer or an open account. The deadline, Nacha's 3.0% level and what to do next.
  12. R04 return code: invalid account number structureR04 means the account number on an ACH debit isn't a valid structure, such as the wrong number of digits. The deadline, Nacha's 3.0% level and the fix.
  13. R07 return code: authorization revoked by customerR07 means a consumer told their bank they revoked the authorization they gave you for an ACH debit. The 60-day window, the 0.5% limit and the next step.
  14. R10 return code: customer says the debit wasn't authorizedR10 means a consumer told their bank they don't know you or never authorized the ACH debit. The 60-day window, Nacha's 0.5% threshold and what to do.
  15. R29 return code: corporate customer advises not authorizedR29 means a business told its bank it didn't authorize a corporate ACH debit (CCD or CTX). The two-day window, Nacha's 0.5% threshold and the next step.
  16. Same Day ACH: windows, limits and feesSame Day ACH settles bank payments within hours on the same business day. Nacha's three windows, the $1 million limit and the rise to $10 million.
  17. What is an ACH authorization?An ACH authorization is the customer's signed or electronic consent to debit their bank account. What Regulation E requires for recurring debits.
  18. What is an ACH dispute?An ACH dispute lets a customer take back a bank debit through their bank. 60 days for consumers, two business days for businesses, and it's final.
  19. What is an ACH prenote?A prenote is a zero-dollar ACH entry sent to check that a bank account is open and can take ACH payments before real money moves. How it works.
  20. What is an ACH reversal?An ACH reversal corrects an ACH entry sent in error. Nacha allows it only for set reasons and within five banking days of settlement.
  21. What is an eCheck, and is it the same as ACH?An eCheck is a bank payment that moves on the ACH Network, often using details from a check. How it relates to ACH and what Regulation E covers.
  22. What is an ODFI in ACH?The ODFI is the bank that sends an ACH payment into the network for the business or person starting it. What it does and what it answers for.
  23. What is an RDFI in ACH?The RDFI is the receiver's bank in an ACH payment. It posts credits, pays debits or returns them, and handles the customer's disputes.
  24. What is Nacha, and what do its rules cover?Nacha governs the ACH Network and writes the Nacha Operating Rules every participant follows. What it does, what it doesn't, and why its rules matter.
Stripe · 7
  1. Stripe ACH Direct Debit: fees, timing and how it worksStripe ACH Direct Debit costs 0.8% capped at $5 and takes up to 4 business days to settle. Fees, mandates, verification and disputes on Stripe.
  2. Stripe payout schedule: daily, weekly, monthly or manualYour Stripe payout schedule sets when money goes to your bank, daily, weekly, monthly or manual. How it differs from settlement timing.
  3. What is a statement descriptor?A statement descriptor is the name on your customer's bank or card statement. Stripe's rules, the 22-character limit, and why it matters for disputes.
  4. What is a Stripe Instant Payout?A Stripe Instant Payout sends your balance to a debit card or bank in about 30 minutes, any day. What it costs, the limits, and which funds qualify.
  5. What is a Stripe payout?A Stripe payout moves money from your Stripe balance to your bank. When the first one arrives, what it costs, and why it never matches one payment.
  6. What is Stripe Connect?Stripe Connect lets software route payments to separate connected accounts. What a connected account is, and why an LLC per location needs its own.
  7. What Stripe charges on a payment planStripe's card fee has a fixed 30¢ on every payment, and ACH is capped per payment, so how you split a plan changes what it costs.
Invoices and receivables · 19
  1. Bad debt write-off: what it is and when the IRS lets you deduct itA bad debt write-off removes a receivable you can't collect. When a business bad debt is deductible, and why cash-method businesses usually can't.
  2. Collection agency: what it is and which rules it followsA collection agency collects unpaid debts for someone else. Who counts as a debt collector under the FDCPA and a few of Regulation F's core rules.
  3. Payment reminder: when to send one and what it should sayA payment reminder tells a customer a payment is coming due or overdue. When to send them on a plan, what to include, and the 10-day notice rule.
  4. Recurring billing: what it is and how it differs from an installment planRecurring billing charges a customer on a repeating schedule for ongoing access. How it works on Stripe, and how it differs from an installment plan.
  5. What are payment terms?Payment terms set when and how a customer pays: the due date, deposit, installments, methods, discounts and late fees. Common terms with worked examples.
  6. What does balance due mean?Balance due is what a customer still owes after payments and credits. How to calculate it, a worked payment plan example, and balance due vs amount due.
  7. What does invoicing in arrears mean?Invoicing in arrears means billing after the work is done, such as October's service billed on November 1. How it compares with billing in advance.
  8. What does net 30 mean on an invoice?Net 30 means the full invoice is due 30 days after the invoice date. How to count the days, what 2/10 net 30 means, and the math on the discount.
  9. What is a credit memo?A credit memo reduces what a customer owes after a return, discount or billing error. How it works, a worked example, and how QuickBooks Online records it.
  10. What is a partial payment?A partial payment covers part of an invoice and leaves a balance open. How to record one, a worked example, and how it differs from a planned installment.
  11. What is a pro forma invoice?A pro forma invoice is a preview of the bill before the sale is final. How it differs from a quote and an invoice, and its role in U.S. customs.
  12. What is a promissory note?A promissory note is a signed, written promise to pay a set amount. What the UCC says makes one negotiable, and how it differs from a payment plan.
  13. What is accounts receivable?Accounts receivable is the money customers owe you for goods or services already provided. How it's recorded, and what it means on a payment plan.
  14. What is an accounts receivable aging report?An AR aging report sorts unpaid invoices by how long they've been past due, in 30-day buckets. How to read one, with a worked example.
  15. What is an overpayment, and what do you do with one?An overpayment is money received beyond what a customer owes. Your three options, a worked example, and how QuickBooks Online handles the credit.
  16. What is days sales outstanding (DSO)?Days sales outstanding is the average number of days it takes to collect payment after a sale. The formula, a worked example, and why plans skew it.
  17. What is deferred payment?Deferred payment lets a customer pay later than the time of sale. When letting a consumer defer payment counts as credit under Regulation Z.
  18. What is layaway, and how is it different from a payment plan?Layaway lets a customer pay for an item over time while the seller holds it. How it works, a worked example, and how it differs from a payment plan.
  19. What is progress billing?Progress billing splits one job into several invoices sent as the work is done. A worked example, and how QuickBooks Online's progress invoicing works.
Books and multiple entities · 12
  1. Bank reconciliation: what it is and how to do it each monthA bank reconciliation matches your books to the bank statement until the difference is zero. The steps, a worked example and where Stripe payouts fit.
  2. Chart of accounts: what it is and how to set one up for paymentsThe chart of accounts is the list of every account your books post to. What goes in it, QuickBooks Online's account limits, and accounts plans need.
  3. Clearing account: what it is and how a Stripe clearing account worksA clearing account holds money between two steps, such as card payments collected but not yet paid out. How a Stripe clearing account works, with entries.
  4. Cost allocation: how to split shared costs across locationsCost allocation spreads a shared cost, like a billing team, across locations or entities by a driver such as revenue. Method and worked example.
  5. Deferred revenue: what it is and how deposits are recordedDeferred revenue is money received before you deliver the work. How a deposit is recorded, when it becomes revenue, and the IRS advance payment rule.
  6. Intercompany reconciliation: how to make both sides agreeIntercompany reconciliation checks that what one entity says another owes matches the other's books. The steps, a worked example and common causes.
  7. Intercompany transactions: what they are, with journal entriesAn intercompany transaction moves money or value between two entities in the same group. Common kinds, and the matching entries both sets of books need.
  8. Legal entity: what it is and why it sets your payment accountsA legal entity is the business that signs contracts, owes tax and owns the money. How it differs from a location, and what it means for Stripe and books.
  9. Management fee: what it is between related entitiesA management fee is what one entity charges others in a group for shared services like billing or finance. How it is recorded and what to ask a CPA.
  10. Multi-entity accounting: running books for a group of entitiesMulti-entity accounting keeps separate books for each entity in a group and combines them. What each entity needs, intercompany entries and eliminations.
  11. QuickBooks class tracking: what it is and how to use it for locationsClass tracking tags QuickBooks Online transactions so you can report by location, program or department. Which plans have it, the limits and a setup.
  12. Unearned revenue: what it is, with a prepaid exampleUnearned revenue is payment received before you've earned it. Why it is a liability, how it turns into revenue month by month, and how tax treats it.
Schools and tuition · 7
  1. R2T4: what the Return of Title IV Funds calculation means for a schoolWhen a student with federal aid withdraws, R2T4 decides how much aid was earned and what goes back. The 60% point, who returns what, and the deadlines.
  2. What is a clock hour?A clock hour is 50 to 60 minutes of instruction in a 60-minute period. How it sets federal aid eligibility, payment periods and withdrawal math.
  3. What is a registration fee at a school?A registration fee is a charge for enrolling a student in a program or term. How it differs from an application fee, and how federal aid rules treat it.
  4. What is a tuition payment plan?A tuition payment plan lets a student pay a school over time instead of up front. When it counts as credit, the school-plan exclusion, and California.
  5. What is an enrollment deposit?An enrollment deposit is the payment a student makes to hold a seat in a program. How it differs from an application fee and how it fits a tuition plan.
  6. What is the 90/10 rule for for-profit schools?For-profit schools in the federal aid programs must get at least 10% of revenue from non-federal sources. How it's counted, and where tuition plans fit.
  7. What is Title IV funding?Title IV funding is federal student aid under the Higher Education Act, like Pell Grants and Direct Loans. How it reaches a school and what rules follow.

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