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Net Billing – How It Works
With Net Billing, the Approved Chargeback Claims are deducted from a customer’s monthly bill. This eliminates the back and forth of funds with Signifyd paying out the claims, and then the customer repaying Signifyd for successfully reversed chargebacks.
Net Billing is a feature that can be added onto any of the below services:
- Guaranteed Fraud Protection (GFP)
- Chargeback Recovery + INR coverage (CBR+INR)
- Customers on Complete Chargeback Protection (CCP) will have the claims payout method default to Net Billing
Benefits of Net Billing
- Reduces accounting work for the customer, engaging only their Accounts Payable function, rather than both Accounts Receivable and Accounts Payable.
- For international merchants, there will be no additional fees to worry about such as wire transfer fees and/or bank exchange rates that are deducted from their total claim reimbursements.
What You Will See
Customers will receive a monthly General invoice, which includes:
- Guaranteed Payments - charges for Guaranteed orders
- Chargeback Reversals - charges for any chargebacks successfully reversed (this is where Signifyd has paid a chargeback but the customer or Signifyd has won the chargeback with their payment provider, and thus, did not incur a loss)
In the Payment section, it will list the credits to net against the invoice, which includes:
- Approved chargeback claims - covered chargebacks
- There will be an invoice number link that customers can view the details of the order IDs and amounts
- Credits - funds deducted for any cancelled Guarantees, remaining credit balance from previous month, or any miscellaneous adjustments
- If there is a credit card on file in the customer’s account, it will be deducted as a payment to Signifyd
In the Note section, there will be a report link that the customers can view all the details of the guarantee payments, chargeback reversals and approved claims.
Here is an example of how the monthly invoice appears for Net Billing:
Guaranteed Payment Invoice
Approved Chargeback Claims
How Does It Work With A Monthly Minimum?
The monthly minimum applies to the Guaranteed Payments, not the net total after claims have been taken off.
Example: Merchant has a monthly minimum of $1000. This month, their Guaranteed Orders come to $1200 but their chargeback claims are $400, giving a net total of $800. Will the merchant still have to pay $1,000 as that’s their monthly minimum? No. As they met their monthly minimum with the Guaranteed Orders of $1200. The merchant will pay $800.
Is There a Detailed Breakdown of the Claims That Constitute the Credit?
Yes. The itemised statement breakdown CSV (linked in the Guaranteed Payments Invoice) includes details of the charges, chargeback reversals, and claim payouts. Claims will show a negative total and say CLAIM_APPROVED along with order ID, Investigation ID, date, and chargeback reference.