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Can Square add a late fee option for unpaid invoices?

Beta Member

Can Square add a late fee option for unpaid invoices?

I was wondering if you guys could create a late fee option built in to the invoice platform.

1 Verified Answer
Joe
Verified Answer

Re: Can Square add a late fee option for unpaid invoices?

Hi @ARenee - this is a great question. An automated invoice fee would be considered a feature request, as of now. But we may be able to suggest a work around.

 

If your customer has an outstanding invoice that has yet to be paid, you can edit the invoice to include a 'late fee' line item. This action would include the fee in the final cost for the customer to fulfill. 

 

I hope this is helpful! 

14 Replies

How are people handling late fees for unpaid invoices? We have had a long standing policy of applying a small percentage late fee per day for unpaid accounts. Is there an existing functionality for this within the invoice module, or has anyone created a work around? 

Super Seller Alumni

There is no late fee option but you can just edit the invoice and add a item called Late fee and add the fee.  Then save and send the invoice again for payment.

Square Community Moderator

Hi @ARenee - this is a great question. An automated invoice fee would be considered a feature request, as of now. But we may be able to suggest a work around.

 

If your customer has an outstanding invoice that has yet to be paid, you can edit the invoice to include a 'late fee' line item. This action would include the fee in the final cost for the customer to fulfill. 

 

I hope this is helpful! 

I would also be interested in this as an automated feature.  Either an automated (by date) late fee or discount that can be put onto invoices

Square Community Moderator

@jenbrooke

 

Noted! We'll keep you posted with updates around this request. 

Hello,

 

We would like the ability to configure automatic late fee's on past due invoices. Should have two options

 

1) Add fee to current invoice

2) Add fee to next invoice if re-accruing.

 

Not only will this generate more revenue for us but for Square as well so it's a win-win.

Also set fee or percentage options.

 

Thanks!

I would like to also say this would be a handy option. For a business owner that has several customers that happen to be late often, it would help to have the system automatically add the late fee to help us get out of the trap of sending out several reminders and then finally adding the fee. Being able to say it is automatically added would help the customers understand they need to resolve it within x amount of time. 

I would suggest that the feature has an option to allow invoice reminders to be sent on a selected timeline and after the account has not been satisfied after your selected grace period that square automatically adds the fee to the third reminder. 

 

My suggested timeline would be as follows:

1. Payment fails and the initial reminder is sent out. 

2. Customer has not paid the invoice after 24hrs. Another invoice is sent with a notice about late fees being added after the payment is 5 business days late. There would also be an option to turn off the late fees if the customer has reached out to make other arrangements with you. Just a simple checkbox to suspend the late fee schedule. 
3. Customer has not contacted us or paid their invoice, It has been 48 hrs and a reminder is sent with a notice explaining that the late fee of 'the agreed-upon amount' is going to be applied to the account tomorrow. 

4. The customer has not contacted us or paid the invoice and the late fee is added to the invoice and resent letting the customer know of the new total. 

 

Notes: It would be nice to have a text field/template that you can add additional information about the late fee. Like if after 90 days the services stop and the account is sent to collections or something similar. 

Beta Member

I agree, a late fee option would be excellent. Even an option to compound interest on past due invoices would be great. Hope this can be considered.

Agreed!! Late fee option in form of interest rate on outstanding amount