Deferred payment or payment upon shipment?

Deferred payment: the buyer is debited in a single installment at a later date.

Payment upon shipment: the buyer confirms the total amount at the time of the order but is partially charged before each shipment.

In both cases, payment is made after the order has been validated, in compliance with DSP2 regulations. If the shipment takes place after 7 days or in several installments, payment upon shipment is obligatory.

From a technical and regulatory point of view, order management differs slightly depending on the chosen payment method. These differences involve the capture delay, which depends on the authorization validity period.

Example scenario based on your stock status:

Stock status	Recommended payment type	Maximum capture delay	Payment guarantee
Shipping trigger guaranteed within a maximum of 7 days	Deferred payment	7 days	YES
Shipping trigger not guaranteed within 7 days	Payment upon shipment	180 days	Depending on the scheme*

^{* See chapter Liability shift for payment upon shipment}

When the buyer places an order, you must determine the type of payment to be used.

Shipping trigger guaranteed within a maximum of 7 days:

Make a deferred payment. Indicate a deferred capture delay to the payment gateway (within the limit of the authorization validity period).

The gateway initiates the cardholder's authentication process (challenge or frictionless) with the issuer, then makes the authorization request using the authentication data.

The transaction amount is blocked on the cardholder's card to guarantee the availability of funds.

The card is debited according to the requested capture delay within the authorization validity period.

You must initiate payment and shipment within this timeframe.
Shipping trigger not guaranteed within 7 days:
Make a payment upon shipment.

If stock status is uncertain and shipment may take longer than 7 days, apply the SHIPMENT_MULTIPLE_AUTHORISATION use case in the payment form.

The gateway identifies this as a payment upon shipment with multiple authorizations and applies a regulatory compliance process.

See Payment upon shipment operating principle for more details.

Use case

Your buyer orders 3 products (EUR 35, EUR 25 and EUR 14.12), for a total amount of EUR 72.12. He or she pays in full, but the card will not be debited immediately.

All products are in stock and shipped simultaneously:

Make a deferred payment.
The payment is triggered on the requested capture date, within the validity period of the authorization.
The total amount (72.12 EUR) is debited in a single transaction.

The products are out of stock:

Make a payment upon shipment with multiple authorizations.
The buyer is authenticated for the total amount (72.12 EUR) at the time of the order.
The buyer is charged progressively with each shipment:
- 3 days after the order, you initiate shipment of product n°1. The buyer is charged EUR 35.
- 10 days after the order, you initiate shipment of product n°2. The buyer is charged EUR 25.
- 20 days after the order, you initiate shipment of product n°3. The buyer is charged EUR 14.12.
If the transaction is made using the CB network, all three transactions will be covered by a payment guarantee, as all shipments occur within 30 days following the order.

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Deferred payment or payment upon shipment?