A new way of making payments
Now launching in the USA
Issue Term Payments
By issuing a Term Payment you send a commitment to make an ACH/E-Check payment on a future date. On the due date, we debit your account and credit your vendor, to get all your NET30 invoices paid right on time.
Get Paid with Term Payments
Request Term Payments from your clients. Upgrade your NET30 invoicing to a signed commitment and let us deal with ACH payment collection. We’ll debit your customer’s account on the due date. No need for the payer to take care.
Your payment is alive
Use the receivables in your account to pay today! Term Payments may be transferred to any of your vendors or contractors from day one. No need to wait!
No matching amounts? Just split one of your payments, transfer the amount you need and keep the rest.
Receive Sponsored Term Payments
Term Payments are backed by everyone in the chain. Increase your sales by accepting terms from a larger customer base!
Improve the odds of collecting on time as the chain of transferors gets longer. In case of insufficient funds, we’ll debit everyone of the payment guarantors until the total is covered.
Insufficient funds? Collect partial payments and keep business flowing.
As part of the collection process, PayOnTerm will debit any funds available and let all parties know there’s an unpaid balance.
Partial collections let you harvest available funds to cover your due payments, while you leverage on the signed commitment to get paid in full.
A comprehensive payment platform
Draft invoices online, attach signed documents to your payments, generate transactions reports, and much more.
PayOnTerm lets you connect securely with all US Banks by integrating with Dwolla and Plaid, two leading open banking providers that facilitate ACH/E-Check payments and authentication.
Coming soon: API connection and custom payment fields for ERP software.
How Term Payments work
Any Corporate software can connect directly to our API, to generate a large quantity of payments at a fraction of the cost. Our solution offers a fully featured integration, while keeping a secured approval process.
Small Business Accounts
Any small businesses can extend better payment terms to their customers thanks to our platform, relying on the feature that allows to transfer any term payment received. They could also get better terms from their suppliers, offering a newly issued term payment instead of a regular net 30 PO.
Schedule your payments from day one and let the platform do the work. Settle a term payment by installments and your contractor, supplier or friend will get every payment on time, every time.
We do the job for you.
Who gets paid
Who gets paid
* the pricing described above applies to single payments on the Entry Level tier, please contact us or enter the Fees & Limits page in your account profile for the full list of applicable fees, discounts, limits and penalties.
What's PayOnTerm and the Term Payments?
PayOnTerm is a payments platform that leverages on current payment standards such as ACH / E-Check to introduce a new concept in the way of paying: Term Payments. They grant flexibility and automation to payment and collection, becoming a useful product for all kinds of businesses.
A Term Payment is a deferred payment issued on a specific date and due on a future date. It establishes a future payment obligation that may not be revoked, which is supported by a digitally signed contract between the parties, instrumented in a simple and automatic way in human readable PDF format.
This payment agreement is drafted in accordance with the laws of the country where it’s issued, governing its legal commitment. Identification of the parties involved is instrumented on the contracts through digital certificates.
On the due date, the platform will collect the funds from the Term Payment issuer’s account and credit the account of the final Beneficiary.
Once you’ve created an account, you just log into the platform and enter all the payment information in the Create Payment page. First type the payee’s email, then enter the amount to pay and the due date on which you want the payment to settle. You could also add notes or attach any supporting documents.
After you send it, the payee receives a notification, prompting to accept or reject the payment. Once acceptance is confirmed, the payment will become valid and will wait for its due date to initiate the settlement of the funds.
When the due date arrives, PayOnTerm will try to collect the funds from the designated account and pay the beneficiary. In case of insufficient funds, the platform will try to collect the outstanding unpaid funds from other accounts that the issuer has linked.
If there are still insufficient funds to cover the Term Payment in full, the platform will perform a partial payment with the funds available, so at least a part of it will be paid, and then notify all parties that there were insufficient funds for a full collection.
Of course you can, this is one of Term Payments’ main advantages. If you received one in payment, you may use it to pay off a debt or an invoice right away. The new beneficiary will collect on the Term Payment’s due date.
It’s not necessary to issue a new one, nor synchronize the collection of your receivables with your payables, since you may use one of the receivables you already have. You will be sponsoring the payment upon transfer, to guarantee its settlement in case of insufficient funds at the time of collection.
If you issued a Term Payment and once the due date arrives you don’t have all the funds available on any of accounts linked to the platform, we’ll take the available funds in order to perform a partial payment. We’ll then notify the beneficiary that, although some of the funds committed have been paid, there were insufficient funds to cover the payment in full.
Eventually, if the Term Payment was passed along the payments chain, we’ll try to collect the unpaid amount from the outstanding account balances of any of its backers, to try to cover the final beneficiary in full.
If funds are insufficient even then, we’ll mark the payment as partially paid and retry collection automatically in subsequent days.
The ability to split payments is another of PayOnTerm‘s novel advantages.
All you need is to take a Term Payment you previously received and indicate the exact amount to transfer to a third party. This partial action will split the Term Payment in two fractions. One will be transferred to your beneficiary to pay, while the other remains in your account as funds to be collected on the due date.
Multiple partial actions, up to the Term Payment‘s total, may be ordered at once. The remainder of a split may also be transferred partially or in full at a later occasion.
Of course, you may transfer as many Term Payments as you want, to add to the total amount you need to pay.
Please remember each payment you transfer keeps its original due date, so if you transfer multiple payments for different dates, the recipient will get paid on various occasions until the full amount is covered.
In this case you (or your company), and every other person or company that received and transferred this payment will act as guarantor to the final beneficiary.
This means that PayOnTerm will first debit all the available funds in the issuer´s account and, in the event those funds are insufficient to cover the full amount, will try to collect the unpaid balances from the accounts of any of the guarantors.
This process protects the final beneficiary, increasing the odds of getting paid on time in full. In case of guarantor payment, the platform will automatically reassign Term Payment fractions to each paying guarantor, for the equivalent of the covered amount.
Every time a Term Payment is received by a beneficiary and then transferred to make a subsequent payment, the transferor will remain guarantor of the amount transferred, since the Term Payment is intended as a means to payoff money owed.
This backing lets a recipient accept a payment issued by an unknown party, as long as the sender is a trusted commercial partner who will cover for the amount owed under any mishaps or unexpected delays.
As a Term Payment is transferred over and over, the chain of participants extends further, adding more guarantors and yielding a higher probability of successful collection.
If parties agree on a payment plan, paying every month, week or fortnight, over a period of time, you may issue or request all those payments at once and with no extra hassle. Dates and amounts may even be customized to accommodate a grace period or an advance payment due in the first few days, you set the terms.
All you need to do is create a Term Payment in Installments and we’ll take care of collecting the funds from the payer’s account on each date you establish.
That’s not a problem. If you issue a payment for today, the Term Payment will initiate the settlement procedure right upon acceptance. Please be aware that payments accepted after the daily settlement cut-off time will be processed next day.
PayOnTerm is ready to process all your business payments and collections, not just deferred, bridging the gap from initiation to funds crediting, through a legally binding contract that lets goods or service be delivered based on parties’ agreement.