Ooooby's advanced billing and debt management system offers flexibility and efficiency in handling financial transactions, resembling a prepaid service. This system benefits both hubs and customers by facilitating upfront payments, allowing for order modifications, and ensuring smooth financial operations. Here's an in-depth look at how advanced billing, debt-based billing, and related processes work within Ooooby.
Advanced Billing Explained
Advanced billing in Ooooby operates similarly to a prepaid account, where customers pay in advance for their subscriptions. This approach provides several advantages:
Flexibility for Customers: Allows changes to orders as needed.
Financial Advantage for Hubs: Enables receiving payments upfront, enhancing cash flow.
How It Works:
Billing Period Selection: Customers are billed in advance for a chosen period, ranging from one to four weeks or more.
Calculation of Bill: The bill is calculated by considering the subscribed deliveries, products, delivery fees, any discounts, and adjusting for any debt or credit on the account.
Impact of Extras: Once-off extras are deducted from the existing account balance, potentially reducing the duration before the next billing cycle.
Debt-Based Billing
Debt-based billing ensures customers are billed only for the debt incurred on their accounts, essentially bringing their balance back to zero.
Operational Timing:
Initiation: Billing is conducted immediately after an Active Order is completed.
Objective: To charge customers for received items, ensuring account balances are cleared.
Billing Process:
Crew Member Action: Billing is started from the Customer Billing page.
Payment Scheduling: Pending payments are listed on the Scheduled Payments page and customers are notified of upcoming charges.
Payment Execution: Payments are processed early in the morning on the scheduled date, with notifications sent for both failed and successful transactions.
Managing Account Changes and Issues
Automatic Debt Limit Reset: A customer's debt limit may revert to zero if their credit card expires. Updating credit card details resets it to the hub’s default limit.
Updating Card Details: Crew members can update card details on behalf of a customer, typically over a phone call.
Declined Payments: Customers are generally advised to contact their bank for declined payments, as the reasons are usually outside Ooooby’s control. For further information read this article.
Further Information
For further information on billing read these articles:
Conclusion
Ooooby's advanced and debt-based billing systems offer a structured approach to managing financial transactions, providing benefits to both hubs and customers. By understanding and utilising these systems effectively, hubs can maintain a steady cash flow while offering customers the flexibility and convenience they appreciate.