Excuse 5: Payment was sent within terms

Applicability

Payment arriving slightly late

Underlying reasons

Customer sent payment within the term but it arrived outside the term (normal post)
In our case, agreed T&Cs and wording on invoice makes it clear that payment has to arrive within terms. Customer has to allow for postal delays In our case, terms are long enough to allow payment to be sent in plenty of time to arrive
Customer sent payment within the term but it arrived outside the term (delayed post)
As above, but in this case if the customer has allowed a reasonably time for payment to arrive, it may be sensible to let them off Post mark can usually be checked to confirm delay in the post, but obviously should not regularly happen Cannot trust franking machine date as customer controlled, or smartstamp date as stamp can be held before posting.
Customer sent payment by BACS within the term and it arrived outside the term (2 day transfer)
Customer has to be educated on the way BACS works - some genuinely do not understand, especially with some bank transfers being same day. Maybe they could use same day fast payments next time.
Customer sent payment by BACS within the term and it arrived outside the term (bank holidays causing delay)
Customers cannot really say they did not know about the bank holidays

Resolution

If delayed in post, may be sensible to credit anyway. Obviously this should not happen often.
If posted (especially delayed) then suggest payment by Fast Payment, BACS , or card in future.
Educate customer on the way BACS payments work - 2 working days.
Explain that same day transfers are now available (fast payments)
BACS payments delayed by bank holidays are no excuse as bank holidays are known in advance. Suggest customer buys a cheap diary.
Persistent offenders should pay the penalty
We recommend terms requiring payment to arrive in time, as this avoids any "cheque is in the post" excuses.

Note that fast payments can be made on non banking days but show on the next banking day on the statement. This can lead to a payment being made within terms on a non banking day but shown on the bank outside terms. Try to set payment terms not to fall on non banking days to avoid this, and clarify terms in this case. In our terms we define that the payment date is as shown on our statement so as to avoid any confusion.