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Auto Pay FAQ

Find out answers to commonly asked questions about using the AutoPay function in Cut+Dry.

Apr 25, 2025

Overview

Cut+Dry Pay allows either your Accounts Receivable (AR) team or your customers to set up automatic payments for an account. Once both a payment method and schedule (e.g., Net Terms or every Monday) are selected, payments will be processed automatically.

Find the answers to common questions below.


Auto Pay FAQ

How do Auto Pay schedules work?

  • Customers receive reminders 48 hours before the payment is processed. The reminder includes:
    • The total amount due
    • The payment method that will be used
  • Customers can log into their account to update payment information before the transaction runs.
  • Once a payment is processed, customers receive a receipt confirming the transaction.

How are credits applied?

  • By default:
    • If the invoice total is larger than the credit: Credits are automaticallyapplied to invoices.
    • If the credit is larger than the invoice total: The invoice will be paid, and the remaining credit will be held for future invoices.
  • Exception: Some distributors do not process invoices until the total balance is greater than the credit amount.
  • There are no partial credits—credits must be used in full.

What happens if an Auto Pay transaction fails?

Here is the process flow if an automatic payment fails:

  1. Both customer and distributor receive a failure notification.
  2. The customer can update payment details, and the system will retry the transaction the next day.
  3. If the second attempt fails, another notification is sent.
  4. A third and final attempt will be made; if it fails again, a final failure notification is sent to both the AR team and the customer.
  5. From there, the distributor’s policy will determine the next steps.

Can I disable Auto Pay?

  • Both customers and distributors can remove Auto Pay at any time.
  • Exception: Some distributors may have a mandatory policy that requires customers to use Auto Pay for online payments.

What happens if a manual payment (check, cash, or in-app) is made?

If a manual payment (check, cash, or in-app) is made toward an invoice, that invoice will not be included in the next autopay transaction.