Can you charge a customer's card on file for an overdue invoice?

The Problem: Why It Matters

For B2B finance teams, overdue invoices present a significant challenge. When an invoice is 45 days late, the pressure to recover the outstanding balance is immense. However, charging a customer's card on file without explicit authorization can lead to chargeback disputes, damaging the customer relationship and potentially resulting in financial losses. Businesses need a way to secure payments without jeopardizing customer trust.

How Most Providers Handle It Today

In the current landscape, many providers offer solutions that involve directly charging a customer's stored card details when an invoice is overdue. While this might seem convenient, it often falls short due to the lack of explicit customer agreement. This can lead to chargebacks, which are difficult to contest and often result in lost revenue. Additionally, this approach can strain the relationship with the customer, as it lacks transparency and mutual consent.

ARPilot's Approach: Solving the Problem Differently

ARPilot takes a distinctive approach by prioritizing customer authorization from the outset. Instead of directly charging stored card details, ARPilot provides a payment link that customers can use themselves or allows them to enroll in an installment plan that automatically charges their card or bank account on pre-agreed dates. This method ensures that all payments are authorized and transparent, significantly reducing the risk of chargebacks.

The system's AI-driven capabilities draft outreach communications and manage the full cash cycle, including payment plans with customer self-enrollment and automatic ACH or card charging. Every action is queued for human approval, ensuring that no automated communication is sent without oversight.

Key Benefits and Measurable Outcomes

ARPilot's solution delivers several key benefits:

• Transparent Transactions: By securing upfront authorization, businesses can conduct transactions transparently, maintaining customer trust and minimizing disputes.
• Automatic Charging: Payments are automatically processed on agreed dates, reducing manual follow-up and ensuring timely collections.
• Quick Customer Action: Payment links allow customers to act in just two clicks, streamlining the payment process.
• Immediate Charge Failure Alerts: Failed charges are flagged the day they occur, allowing finance teams to address issues promptly.
• Consistent Coverage: The platform ensures every invoice is tracked and acted upon, not just those from the loudest accounts.

By utilizing ARPilot, businesses can improve their invoice-to-cash cycle efficiency, enhance customer relationships, and secure their cash flow.

FAQ

What happens if a payment fails?

If a payment fails, ARPilot immediately flags the issue, allowing finance teams to address it promptly. This ensures that any disruptions in cash flow are minimized and resolved quickly.

How does ARPilot ensure customer consent for payments?

ARPilot provides payment links and installment plan options that require customer action and consent. This upfront agreement reduces the risk of chargebacks and maintains transparency.

Can ARPilot integrate with our existing accounting system?

Yes, ARPilot integrates seamlessly with QuickBooks Online via bidirectional sync and can connect with other systems through REST API, CSV import, or a custom adapter under an Enterprise agreement.

Is there a risk of unauthorized transactions with ARPilot?

No, ARPilot's architecture requires human approval for all customer-facing actions and write-backs to the accounting ledger, ensuring that no unauthorized transactions occur.

What is the cost structure of ARPilot?

ARPilot offers a free tier for up to 10 invoices a month, with a Starter plan at $99 per month and a Professional plan at $299 per month, which includes API access. Enterprise options are available with negotiated SLA, and payment-plan volume carries a basis-points fee.