Prepayments and Pay Upon Invoice

Introduction

SmartPay support two invoicing models, Prepayments and Pay Upon Invoice, designed to accommodate different merchant billing strategies. Both models are available through API-only integration and enable merchants to handle invoicing seamlessly while offering a tailored payment experience to their customers. Prepayment is suited for scenarios where payment is required before goods or services are delivered, helping merchants secure funds upfront and reduce the risk of non-payment. Pay Upon Invoice, on the other hand, is typically used in B2B transactions or for established customers, as it enables them to receive the goods before completing the payment. This approach offers greater flexibility and can strengthen customer relationships by accommodating their internal payment processes.

These invoicing methods are exclusively available via the API-only integration. By using the API-only flow, merchants retain full control over the user experience and can embed invoicing logic directly into their own checkout systems. In the API request, the distinction between the two models is made using the type enumeration parameter. This simple enum-based distinction enables merchants to dynamically configure the desired invoicing flow depending on customer type, risk profile, or business model.

For more information, visit API-only Payment Authorization.

Workflows and Transaction Types

SmartPay Integration Flow for Merchants

Please visit the Integration Journey for more details.

Prepayments and Pay Upon Invoice represent a simple one-time transaction flow, where the customer provides their payment details, and the payment is immediately authorized and captured through API calls. The process does not support recurring billing, subsequent charges or additional interactions beyond the initial payment request.

Communication with the Customer

tip

Since Prepayment and Pay Upon Invoice processing is async, make sure Notification service is available and integrated.

SmartPay's notification system ensures customers are informed about their prepayment activity, including:

• Confirmation of funds added to their prepaid account.
• Notifications of balance usage, expiration, or low balance reminders.
• Updates related to subscriptions or recurring deductions using prepaid balances.