How are late fees assessed?

Introduction:

Understanding how Resolve adds late fees to accounts is essential for both our merchants and customers. In this article, we will provide insights into the process of how Resolve applies late fees to delinquent invoices, ensuring transparency and clarity in our fee structure.

Late Fee Application Process:

Late fees are applied to delinquent invoices at specific intervals. Resolve follows a clear process for adding late fees to accounts:

1. 30 Days:
   • When an invoice is 30 days delinquent, Resolve applies a late fee, which includes:
     • 3.5% of the current invoice balance + $29
2. 60 Days:
   • For invoices that reach the 60-day delinquent mark, Resolve calculates the late fee as:
     • 3.5% of the current invoice balance, including fees + $29
3. 90 Days:
   • Once an invoice is 90 days delinquent, Resolve imposes a late fee, consisting of:
     • 3.5% of the current invoice balance, including fees + $29

Collections Fee (90 Days Delinquent):

In addition to the late fees applied at 90 days delinquent, Resolve may also apply additional collections fees to all open invoices. This collections fee helps cover administrative costs associated with managing severely delinquent accounts.

Credit Line Hold (15 Days Past Due):

It's crucial to be aware that when an invoice becomes 15 days past due, Resolve may place a temporary hold on the credit line associated with the account. This proactive measure is implemented to prevent further transactions until the outstanding payment is resolved.

Can a late fee be waived?

Sometimes. We review every request, and these are the situations where we can usually help.

When we can usually waive a fee:

• Your payment was already on its way. If you sent payment before the fee was added, or within a few business days of it, send us your proof of payment.
• The delay was on our side. For example, a payment was applied to the wrong invoice, or reminder emails didn't reach you because of a problem on our end.
• It's the first time. If your account has a good payment history and this is your first late invoice, we may waive the fee once as a courtesy.

How to request a waiver:

Email help@resolvepay.com with:

• The invoice number(s)
• The reason you're asking
• Proof of payment, if you've already paid. This could be a check number and mail date, an ACH trace number, or a bank confirmation.

We'll reply once it's reviewed. If the fee is waived, you'll get an email notification. 

For further information or if you have questions regarding late fees, credit holds, or any other aspects of Resolve's services, don't hesitate to explore our related articles or reach out to our support team.

Quick Links:

• Why is my customer's account on a credit hold? And how do we remove the credit hold?
• Request Credit Line Reinstatements
• Void Invoice
• Applying a credit note balance to an open invoice
• Waive late fee on non-advanced invoices