The purpose of this article is to guide merchants on how to enable late fees customers.
Directions
Proceed through the following steps to enable late fees for an account:
Step 1: Log in to the Dashboard
Step 2: Users
Step 3: Search user
Step 4: Edit User Detail View
Step 5: Billing settings
Step 6: Checkbox
Step 7: Update
Late Fee Invoices Details
Note:
Because payments are rarely late by exact monthly increments, commercial contracts usually prorate interest daily.
Note:
interest is not calculated on other, late fee invoices.
Example calculation
Refer to the example below:
Note: in the example below the 1.5% monthly interest rate is used.
Invoice ID: 123456789
Invoice Principal Amount: $2,000
Annual Rate: 1.5% × 12 months = 18% APR
Daily Rate: 18% ÷ 365 = 0.0493% per day
Daily Charge: $2,000 × 0.000493 = $0.986 per day
Total for 90 Days: $0.986 × 90 = $88.74
Line item amount or the late fee invoice: $88.74
