Automatic payments for recurring invoices

With a recurring invoice, your customer can choose to pay automatically: they save their card or bank account (ACH in the United States, pre-authorized debit in Canada) once, and each new invoice from that recurring invoice is charged on its due date. They still get every invoice by email first, and a receipt after. The money goes to your own Stripe account and is recorded in your books exactly like a payment made with Pay.

Before you start

• Online payments are set up in Settings › Payments and Stripe says you're ready (how).
• Automatic payments are offered: Settings › Payments › Automatic payments on recurring invoices, the box is ticked (it is unless you untick it).
• The invoice comes from a recurring invoice (Sales & Get Paid › Recurring invoices), and Email each invoice automatically is on, so your customer gets each invoice before it's charged.
• A customer in another currency (Multicurrency) saves a card (not a bank account), and each invoice is charged in their currency.

How your customer turns it on

1. 1They open any invoice from the recurring invoice online (See and pay it online in the invoice email).
2. 2Under the amount, they find Pay automatically and can open What you agree to to read it in full.
3. 3They press Pay $… and pay future invoices automatically (or, if this invoice is already paid, Set up automatic payments).
4. 4On Stripe's secure page they enter their card or bank account. The same agreement is shown above Stripe's button. TallyPip and you never see the card or account number.
5. 5Back on the invoice, it says Automatic payments are on. They get an email with exactly what they agreed to, and you (the owners) get an email too.

What they agree to: that you charge the card or bank account they saved for each invoice from this recurring invoice, on each invoice's due date, starting with invoices sent from that day; that the amount can change if you change the invoice; that they get every invoice by email before it's charged and a receipt after; and that they can stop at any time. TallyPip keeps the exact words with the date, as the record of their agreement.

A Canadian bank account (businesses in Canada): Stripe also shows its pre-authorized debit agreement, which says when the account is debited: today for this invoice if they pay it on the same page, then on the due date of each invoice from the recurring invoice. Stripe emails your customer a copy, and a notice each time money is taken. If they typed their bank numbers instead of signing in to their bank, automatic payments start once they confirm Stripe's two small deposits (1 to 2 business days).

What happens each time

• The recurring invoice makes and emails the invoice as usual. The email says This invoice will be paid automatically from your Visa ending 4242 on (the due date).
• On the due date (within a few minutes), TallyPip charges it. A card payment shows on the invoice straight away as Paid automatically, with Stripe's fee; a bank payment shows as on its way and is added when it clears (usually a few working days; about 5 business days for pre-authorized debit in Canada).
• Your customer gets a receipt: Paid automatically: invoice … from (your business). You (the owners and admins) get an email that it was paid, unless you turned those off in Settings › Payments.
• No payment reminders go out for an invoice that will be paid automatically.

Use payment terms that give your customer time to look at each invoice before it's charged, for example Net 7 or Net 15. With Due on receipt, it's charged a few minutes after it's sent.

If a payment doesn't go through

If the card is declined (or the bank account can't be charged), the invoice stays open. Your customer gets an email saying why, in plain words ("the card has expired", "there wasn't enough money available"...), with a link to pay it; you get an email too, and the invoice page shows it. Your usual payment reminders carry on for that invoice. TallyPip doesn't try the same invoice again by itself.

Automatic payments stay on for the next invoice. If two in a row don't go through, automatic payments turn off, and both of you are emailed. Your customer can turn them on again with the same or another card.

Changing the card, or stopping

• A new card: your customer opens any invoice from the recurring invoice and presses Use a different card or bank account (under Automatic payments are on). It only saves the new one on Stripe's page; nothing is charged then. The new card replaces the old one, which is taken off.
• Your customer stops it: on any of those invoices online, Stop automatic payments. You're emailed.
• You stop it: open the recurring invoice (Sales & Get Paid › Recurring invoices) and press Stop automatic payments in the Automatic payments box. Your customer is emailed.

Automatic payments also stop by themselves, and your customer is told, when you delete the recurring invoice, turn off online payments, connect a different Stripe account, or give the recurring invoice to a different customer. When they stop, the saved card or bank account is taken off your Stripe account, so it can't be charged again.

Unticking Let customers pay their recurring invoices automatically in Settings › Payments stops new customers turning it on. Customers who already pay automatically carry on until you or they stop it.

Questions

• Where do I see who pays automatically? In the list of recurring invoices (Paid automatically under the customer) and on each recurring invoice's page, with the card and since when.
• Can I turn it on for a customer? No: only your customer can agree to be charged, on their own invoice. Send them the invoice and point them to Pay automatically.
• Refunds and disputes work as for any online payment: handled in your Stripe Dashboard (how).
• My customer says they were charged twice. Each invoice can only be charged automatically once; if they also pressed Pay before it was charged, the extra is refunded to them automatically.