Early-payment discounts

An early-payment discount gives customers a reason to pay now, not on the last day. For example: 2% off when they pay online within 10 days of the invoice date.

Turn it on

1. Make sure online payments are on: the discount is taken when the customer pays online.

2. In Settings, under Early-payment discount, tick Offer an early-payment discount.

3. Choose the discount (0.5% to 5%) and the number of days.

4. Choose where discounts are recorded in your accounting software, or leave the default.

5. Click Save changes.

It applies to invoices dated from the day you turn it on, so nobody gets a discount on an invoice you already sent without one.

What customers see

• Their payment page shows the discount next to each invoice that qualifies, with the date it ends, and charges the lower amount.
• If you leave Email customers about it when a new invoice arrives ticked, they get one short email telling them how much they'll save.
• Only whole invoices qualify: not ones already part-paid, late-fee invoices, or invoices on a payment plan.

In your accounting software

We record the payment, then the discount, so the invoice shows as paid in full. In Xero that's a credit note allocated to the invoice; in QuickBooks it's a credit memo applied to the invoice, using an Early payment discount item we create for you. Ask your accountant how discounts affect sales tax or GST.

To stop offering it, untick it and save. Discounts already taken aren't changed.