Use Case: Set Up Merchant Statement Billing

You can set up recurring statement billing to take fee amounts from a Merchant’s balance by setting up a monthly billing statement. Statement Billing helps with monthly reconciliation by tracking each fee as a statement entry before consolidating by fee type into a single statement bill. This tutorial will walk you through the steps to create a new recurring billing schedule.

Screenshot 2024-01-17 144016 uc bil sched.png

Objective

Create a recurring billing schedule that withdraw fees from a Merchant account.

Audience

Facilitators
Referrers

Environment

Portal (Sandbox)
Portal (Production)

Prerequisites

Prerequisites:

You must have a fully boarded Payrix account to perform any of the actions described in the use case guides.
You must outline your platform billing costs in your terms of service to avoid legal complications.

Warnings

Warnings will provide insight or advice to avoid risk, visibility, and product performance issues during this use case.

Warning: Do not create or apply surcharges as legal complications can occur. Visa and MasterCard specifically prohibit the application of surcharges to cardholders on their card brand networks respectively.

Tips

Tips will provide suggestions to streamline or better prepare you to apply this use case tutorial.

Tip: A recurring statement billing can be an alternative to a transaction fee, because statement billing allows for easier reconciliation each month. For more information on transaction fees, see the Set Up Transaction Fees use case page.

Tip: If you’re unsure of how much to charge for a specific fee type, refer to the Visa and MasterCard card brand network guidelines.

Additional Resources

For more information about different statement and net billing structures, see the Billing page.
For more information about different statement billing statuses, see the Statement Billing Statuses page.

Set Up Merchant Monthly Statement Billing

Set Up a Monthly Statement Billing for a Group of Merchants

Click here to set up a monthly statement billing for a group of Merchants.

1. Open the Group Profile

Step 1: Click GROUPS in the left-hand navigation panel to open the Groups page.
Step 2: Locate the group in the table and click on any information in the table row to open the Group Profile page.

2. Add a Billing Schedule to the Group Profile

Step 1: Click BILLING SCHEDULE in the list of tabs on the left-hand side of the page.
Step 2: Click the ADD BILLING SCHEDULES button in the upper right-hand corner of the page to open the Add Billing Schedule lightbox on the page.
Step 3: Select the billing schedule interval from the Schedule drop-down menu. Choose from:
- Daily
- Weekly
- Monthly
- Annually
Step 4: Enter the schedule interval number in the Interval field. The schedule interval number indicates how frequently the scheduled billing event appears on your billing statement.
Step 5: Enter the start date by clicking on the calendar in the Start Date field. By default, the start date is set to the current date.
Step 6 (Optional): Enter an end date by clicking on the calendar in the End Date field.
Step 7 (Optional): Enter a collection factor in the Collection Factor field. A collection factor is how often the billing schedule occurs. Choose from the following:
- Daily
- Weekly
- Monthly
- Annually
Step 8: Enter the collection offset number in the Collection Offset field. A collection offset is the set interval in which bill collection may be delayed or initiated early.
Step 9: Choose the currency by selecting UNITED STATES DOLLAR or CANADIAN DOLLAR from the Currency drop-down menu.
Step 10 (Optional): Enter a description for the new billing schedule.
Step 11: Click ADD to save the new billing schedule.

Result: The new billing schedule will appear on the Billing Schedules tab on the Group Profile page, and fees will be collected from the Merchants in the group based on the billing schedule settings.

Set Up a Monthly Statement Billing for an Individual Merchant

Click here to set up a monthly statement billing for an individual Merchant.

1. Open the Merchant Profile

Step 1: Click MERCHANTS in the left-hand navigation panel to open the Merchants page.
Step 2: Locate the Merchant in the table and click on any information in the table row to open the Merchant Profile page.

2. Add a Billing Schedule to the Merchant Profile

Step 1: Click BILLING SCHEDULE in the list of tabs on the left-hand side of the page.
Step 2: Click the ADD BILLING SCHEDULES button in the upper right-hand corner of the page to open the Add Billing Schedule lightbox on the page.
Step 3: Select the billing schedule interval from the Schedule drop-down menu. Choose from:
- Daily
- Weekly
- Monthly
- Annually
Step 4: Enter the schedule interval number in the Interval field. The schedule interval number indicates how frequently the scheduled billing event appears on your billing statement.
Step 5: Enter the start date by clicking on the calendar in the Start Date field. By default, the start date is set to today’s date.
Step 6 (Optional): Enter an end date by clicking on the calendar in the End Date field.
Step 7 (Optional): Enter a collection factor in the Collection Factor field. A collection factor is how often the billing schedule occurs. Choose from the following:
- Daily
- Weekly
- Monthly
- Annually
Step 8: Enter the collection offset number in the Collection Offset field. A collection offset is the set interval in which bill collection may be delayed or initiated early.
Step 9: Choose the currency by selecting UNITED STATES DOLLAR or CANADIAN DOLLAR from the Currency drop-down menu.
Step 10 (Optional): Enter a description for the new billing schedule.
Step 11: Click ADD to save the new billing schedule.

Result: The new billing schedule will appear on the Billing Schedules tab on the Merchant Profile page, and fees will be collected from the Merchant based on the billing schedule settings.

Next Steps

Once the new billing schedule is added, review the following use case guides for additional information on related topics:

Set Up Transaction Fees: Set up transaction fees for a Merchant account or group using the Set Up Transaction Fees use case.
Enable Transaction Event Alerts: Create an email alert that will trigger when you or one of your users create or update a transaction using the Enable Transaction Event Alerts use case.

Conclusion

Once the billing schedule is created, it will automatically trigger at the scheduled intervals.

References

Click the links or items below to access any of the following pages:

Billing
Statement Billing Statuses
Groups page [Referrer][Facilitator]
Group Profile page [Referrer][Facilitator]
Merchants page [Referrer][Facilitator]
Merchant Profile page [Referrer][Facilitator]
Set Up Transaction Fees
Enable Transaction Event Alerts