Sometimes, things get a bit tricky when customers pay more money than they owe for an order, and this is known as an "overpayment." This overpayment situation is a bit different from the regular credits you might see in a customer's account. In this post, we'll explain why overpayments happen, what they mean, and how they are managed in Neto.
How an Overpayment is Created
- Payment Exceeds Amount Outstanding: When a customer pays more than the amount owed on an invoice.
- Editing Order Details: Sometimes, an order starts as fully paid but is edited later in the control panel, causing the paid amount to surpass what's owed.
- Backorder System Split: In some cases, if an order is split using the backorder system, the original order might end up being overpaid. However, this overpayment is usually automatically applied as a credit to the new split order without needing manual intervention.
Overpayment as a Credit
When an overpayment is made, it differs from a typical account credit in a few important ways:
- You can easily see orders with overpayments since they appear on the control panel with a negative amount owed on the “Sales Orders->View Orders” page.
- Overpayments are shown as credits in the "account" part of the customer card, along with the related order ID for easy reference and an option to refund from the customer card.
A step-by-step guide to identifying overpaid orders can be found here.
Applying and Managing Overpayment Credits
When customers accidentally overpay, it's essential to have clear procedures in place.
- Applying Credits to Invoices: Overpayment credits can be applied through your control panel the same way that you would apply a manual or RMA credit. It's important to note that these credits won't automatically show up during customer checkout.
- Refunding to Customers: If a customer needs the overpayment back, you can easily refund them. Just head to the customer card interface and click on the "pay refund" button next to the credit amount. This refund, though, stays within the system for proper record-keeping and does not refund the amount outside of Neto.
Making Credits Usable
To make sure your customers can actually use their overpayment credits during checkout, a bit of manual work is needed.
This step involves a two-part process. First, refund the credit to the customer. Then, in your control panel, add it as a manual credit. Adding the credit as a manual credit on the customer’s card allows the customer to checkout on the website using the available credit, which they cannot do with an overpayment credit.
You, as a retailer, need to grasp overpayments to effortlessly handle complex transactions. Implementing clear protocols for applying, refunding, and converting overpayment credits will make improving online storefronts and payments a breeze for your customers.
