Your payment terms control when an invoice is considered overdue. They do not control when you can pay it — you can always pay any invoice whenever you want.
#The terms you may see
- Due on Receipt — payment is due immediately. The invoice is past due the day after it is issued.
- Net 1 — due the next day.
- Net 15 — due 15 days from the invoice date.
- Net 30 — due 30 days from the invoice date.
- Net 45 — due 45 days from the invoice date.
The exact term that applies to your account is set during onboarding. You can see what it is at any time in Billing > Overview, in the Payment Terms card at the top of the page.
#How terms appear on each invoice
Every invoice shows two dates:
- Invoice date — the day the invoice was issued.
- Due date — the day payment is expected, calculated from the invoice date plus your term.
The invoice list at Billing > Invoices sorts by either of these. Open any invoice to see both clearly.
#What happens after the due date
If an invoice is not paid by its due date, its status flips and you may see a reminder email. See Overdue invoices for what happens next and how to bring an account current.
#Changing your terms
Payment terms are part of how your account is set up. If you think the term on your account no longer fits — for example, you have grown into larger orders and want longer terms — reach out to your account team. We will look at it with you.
#A note on terms vs. credit
Your payment term works alongside your credit settings. Terms decide when an invoice is due. Credit decides how much can be on the books at once. Merch has two credit concepts that can apply to your account:
- Open-balance credit limit — caps the total invoiced-but-unpaid amount across all open invoices. See Credit limits.
- Fulfillment credit limit — caps how much in-flight (allocated but not yet invoiced) work your account can carry, on accounts with spend controls enabled. See Fulfillment credit limit.
These two limits are independent of each other and independent of your payment term.