Properly defined payment terms are essential for securing bookings, maintaining healthy cash flow, and ensuring a positive customer experience. OctopusPro provides versatile tools to customize payment requirements for each service you offer—whether that involves collecting deposits, requiring full payment upfront, or using pre-authorization. In this guide, we’ll explain how to configure these settings at the company and service levels, outline best practices for automating payment reminders, and show you how to manage exceptions or overrides for specific scenarios. With a well-structured payment setup, you can reduce no-shows, streamline invoicing, and give your customers a clear understanding of your service costs and payment obligations.

Choosing No Payment without collecting any card details means customers can complete their booking without entering payment information at all. This approach is typically used for:

• Free Services or Promotions: If your service or event is free of charge, no payment details are necessary.
• Trust-Based or In-Person Payment: You may prefer to handle payment manually (e.g., cash on arrival, invoice later) without requiring upfront details.

Key Points About No Payment (No Card on File):

• No Automatic Enforcement: Because no payment information is captured, the system cannot automatically charge or enforce payment at any point.
• Manual Follow-Up: If your service is not free, your team will need to coordinate payment collection separately (e.g., on-site, via invoice, or through another method).
• Overdue Reminders Still Possible: You can still generate invoices and activate automated reminders for overdue payments, but the responsibility to ensure the customer pays remains entirely manual.
• Less Friction for Customers: This option can lower barriers to booking for certain services, though it may increase the risk of unpaid or canceled appointments if payment is required later.

This method suits businesses offering complimentary services or preferring to finalize payment offline. If you need to secure bookings with a deposit, card details, or full payment, consider the other payment options available.

Choosing No Payment at the time of booking means that customers can finalize their reservation without paying any portion upfront. Instead, they must enter valid credit card details, which are stored securely for potential future charges. This approach offers a convenient path to convert bookings without requiring immediate payment, but it also shifts responsibility to your team to collect payment manually later (e.g., when services are completed or at an agreed-upon date).

Key Points About the No Payment Option:

• Card on File:
  Even though no funds are collected upfront, the system keeps the card details to facilitate future charges if needed (for instance, upon job completion or any additional charges).
• Customer Confidence:
  This option can encourage customers who may be hesitant to pay or commit a deposit right away, improving your conversion rate for bookings.
• Staff Oversight Required:
  Since no charge is processed at booking time, your admin or fieldworkers must ensure payment is eventually collected—particularly if a deposit or final balance is due.
• Automation & Notifications:
  You can still utilize overdue invoice reminders or other automated messages to prompt customers for payment if they haven’t been charged by a certain date.

This No Payment method is especially valuable for businesses that prefer to bill customers post-service, or want to lower the barrier to booking while retaining payment details for future charges.

Deposit Payment Requirements & Collection

OctopusPro allows you to secure bookings by requiring a deposit—either a fixed amount (e.g., $50) or a percentage of the total booking cost (e.g., 20%). This feature is designed to reduce no-shows, improve cash flow, and give customers a clear sense of commitment.

1. Fixed or Percentage Amount

   • Fixed Deposit: Charge a set amount value.
   • Percentage Deposit: Collect a specified percentage of the booking total.
   • Service-Level Overrides: You can override these default deposit settings in Service Settings if different services require varying deposit structures.

2. Process Payment On
   When customers book through your customer portal, you can choose when the deposit is actually charged to their card:

   • On booking creation through customer portal

     • The deposit is charged immediately when the customer completes the booking.
     • This ensures every new online booking is financially secured from the start.

   • On booking acceptance by fieldworker or admin

     • The customer provides card details at the time of booking, but the deposit is only charged once a fieldworker or admin approves the booking.
     • This is useful if you prefer to verify availability or finalize details before taking payment.

3. Bookings Created by Admin or Fieldworkers

   • Manual Enforcement: For bookings made internally (e.g., by staff), deposits aren’t automatically charged.
   • Staff Responsibility: The deposit amount is calculated and added to the invoice, but your staff must manually collect or confirm payment from the customer.

4. Automated Deposit Reminders

   • Deposit Payment Reminder for Upcoming Bookings:
     • Enable this automation under Settings > Communications > Automations to send email or SMS reminders to customers who haven’t paid their deposit.
     • The reminder timing (e.g., 1 day or 2 days before the booking start date) is configurable, ensuring customers are prompted well in advance.

5. Partial Payments & Adjustments

   • Partial Payment: The deposit is recorded as a partial payment toward the total. The remaining balance is due per your payment terms.
   • Refunds & Adjustments: If deposits need to be refunded or changed, you can manage these transactions using OctopusPro’s financial tools.

By configuring deposits—along with the timing of when payments are processed—you can better secure bookings, reduce manual follow-ups, and maintain a professional, efficient billing process.

Full Payment

Choosing Full Payment requires customers to pay the entire booking cost upfront, ensuring immediate financial commitment. This option can be enforced in different ways, depending on your operational needs:

1. Process Payment on Booking Creation (Customer Portal)

   • Immediate Charge: When a customer completes a booking through your portal, the full cost is charged right away.
   • Reduced No-Shows: Since the entire amount is paid in advance, customers are less likely to cancel at the last minute.
   • Automated Gateway: If you have an integrated payment gateway, the system processes the transaction seamlessly during checkout.

2. Process Payment on Booking Acceptance (Fieldworker or Admin)

   • Pending Approval: Customers enter their payment details at the time of booking, but the charge is only applied once a fieldworker or admin approves or “accepts” the booking.
   • Operational Flexibility: This approach allows you to verify availability or confirm service details before taking full payment.

3. Full Payment After (X Days)

   • Scheduled Charge: Instead of charging immediately, you can configure the system to collect the full payment a certain number of days after booking creation.
   • Intermediate Option: This is ideal if you need a short grace period before finalizing charges—such as giving customers time to finalize details or cancel without penalty.

4. Admin or Fieldworker Bookings

   • Staff Responsibility: For bookings created internally, the system does not automatically charge customers. Your staff must manually confirm payment.
   • Invoice Generation: The invoice will reflect the full amount, and staff can record the payment once it’s received.

Key Benefits of Full Payment:

• Cash Flow Stability: Receiving the entire service cost upfront improves your revenue consistency.
• Fewer Unpaid Bookings: Eliminates partial or pending balances, reducing administrative follow-ups.
• Professional & Transparent: Customers know exactly what they owe and pay it all at once, minimizing confusion about future charges.

By selecting Full Payment and deciding when the charge is processed, you maintain control over your booking workflow while ensuring services are secured financially from the outset.

Pre-Authorization (Card Pre-Auth)

Pre-Authorization allows you to place a temporary hold on a customer’s credit card for a specified amount without immediately charging it. This approach is particularly beneficial for high-value or variable-cost services where the final price may not be determined until after the work is completed. By using a pre-authorization, you ensure that sufficient funds are available on the customer’s card, providing security for both you and the customer.

1. How It Works

   • Temporary Hold: When the customer provides their card details, a hold is placed for a certain amount (e.g., $100 or 20% of the estimated booking cost).
   • No Immediate Charge: The card is not actually billed at this stage; funds remain on hold until you finalize the transaction or release the hold.

2. Ideal Use Cases

   • High-Value Bookings: For expensive services or items, pre-authorization guarantees the customer has adequate funds.
   • Variable Pricing: If the final cost depends on additional work or materials, you can hold an estimated amount and only charge the exact total upon completion.
   • Damage Deposits: For industries like rentals or accommodations, you can hold a security deposit to cover potential damages, then release or adjust the charge as needed.

3. Processing & Release

   • Completion of Service: Once the service is finished and the final cost is determined, you can convert the pre-authorization into a charge (partial or full), depending on the final amount owed.
   • Release Unused Funds: If the final cost is less than the pre-authorized amount, you can release the difference. If no charge is required, you can void the pre-authorization entirely.
   • Time Limit: Most payment gateways set an expiration window (often 7–30 days) for a pre-authorization hold. If you don’t finalize or release it within that period, the hold expires automatically.

4. Benefits

   • Reduced Risk: Ensures funds are available without committing the customer to an immediate charge.
   • Improved Cash Flow Management: You can finalize or cancel charges based on the actual work performed, avoiding refunds or complicated invoice adjustments.
   • Enhanced Customer Experience: Customers see a pending hold on their card rather than a full charge, which can be more comfortable for higher-cost or uncertain jobs.

By using Pre-Authorization, you strike a balance between securing your bookings financially and offering flexibility to accommodate final cost variations or additional services. This fosters trust and clarity in the payment process for both you and your customers.