Clover Platform Docs

Billing lifecycle

Clover generates charges based on the merchant's app usage. Use the Billing > Transactions page on the Developer Dashboard to track these charges through the billing lifecycle. You can see statements showing your disbursements on the Billing > Statements page.

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TIP

When analyzing a charge, note the unique Charge ID on the transaction. Click the status to see the charge details.

Billing lifecycle

The following figure shows the billing lifecycle.

The billing lifecycle showing the happy path and the developer payment status.

Monthly payment workflow

Clover's billing does the following:

  • On the first of the month, bills in advance for subscriptions.
  • Throughout the month creates partial monthpartial month - The first charge is added when a merchant installs a new app and the installation occurs after the first of the month. charges for new installs.
  • Throughout the month creates prorated subscriptionprorated subscription - A merchant subscription tier adjustment, when a merchant downgrades their subscription, or uninstalls an app, and Clover adjusts the charge difference in the current month's advance on the merchant account. charges/refunds for subscription changes and uninstalls.
  • On the first of the month bills for metered events in arrears.
  • On the first of the month begins processing Pending charges and moves them to In Progress.
  • Attempts to debit the merchant's bank account and changes the charge status to Billed.
  • Deposits your share of the charge in the third week of the following month and sets the charge status to Disbursed.
  • Sends you a confirmation email of deposited charges.
  • If the deposit fails, changes the payment status to Disburse Failed. If you see this status, then ensure your bank information is current with Clover.

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IMPORTANT

In order for a disbursement to go through successfully, you must have a current and active bank account with Clover. If your bank account has changed update your bank account.

ACH reject charges

Clover billing does the following if a merchant fails to pay the amount due:

  • Sets the rejected charges to the ACH Reject status.
  • Sends an email to the merchant informing them of the reject and asking the merchant to update their banking information.

In the North America region, if the merchant's bank account is not fixed after an ACH reject, the charges from the next month's transactions are set in the Incurred charge status. Clover Billing:

  • Sets all existing pending charges or refunds to the Incurred status.
  • Sets all subsequent charges or refunds to Incurred.
  • The subsequent monthly statement email will remind the merchant that they need to update their banking information and will include the outstanding balance of Incurred charges

You won't be paid for the Incurred charges until the merchant has fixed their bank account with Clover and Clover was able to collect the amount from the merchant.

In the European Union (EU) region, charges after ACH reject remain in the In Progress status until the merchant fixes their bank account or Clover deactivates merchants who have no been paying over a long period of time.

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NOTE

While the merchant is in a Lapsed account status you can still request refunds for Incurred charges.

After the merchant has updated their banking information Clover will:

  • Change the Incurred charge statuses to Pending.
  • Process the Pending charges on the 1st of the next of the month.

You can reach out to the merchants whose charges are in the ACH Reject charge status and ask them to update their bank information. Merchants can update their bank information by calling the Clover Customer Service number listed on their statement. Merchants must state they want to update their App Market bank account or direct deposit account (DDA).

Alternatively, you can handle this scenario within your app. Clover’s Developer Agreement recommends this as your responsibility in Part 1, section 8.5.

Reasons for ACH Reject

Because Clover serves small and medium businesses we expect occasional issues with merchants paying Clover on time. Reattempts to debit the accounts are based on the ACH processor rules in each region.

Some of the reasons why payments to Clover fail include:

  • Insufficient funds

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NOTE

In North America (NA) region, Clover reattempts to debit the account twice totally. If the reattempt to debit the merchant account fails again, those charges are again set to the ACH reject status. This merchant's account status is changed to Lapsed.

  • Account was closed or doesn’t exist
  • Invalid bank account number or account incorrectly set up
  • Payment stopped
  • Bank account frozen
  • Merchant goes out of business

Processing refunds

Clover calculates prorated refunds when merchants change subscriptions or uninstall an app. If a merchant requests a full refund, you can initiate a refund for the remaining transactions from the Developer Dashboard.

Initiate refunds

On the Developer Dashboard, in the Billing section:

  1. Search for a specific transaction or merchant.
  2. Click a transaction to open the Billing History panel.
  3. Select an app and view the charges on the app in various statuses.
  4. Click a transaction charge to display the Charge Details panel.
  5. Click Refund Charge to refund charges in the Pending, Incurred, In Progress, or Billed statuses.
  6. Clover creates a new charge in the Refund Pending charge status.
  • You can cancel the refund if the charge status is either Refund Pending or Refund Incurred.

Refunds workflow

Refund scenarios for merchant downgrade or uninstalling an app, ACH Reject, and Incurred charges.

The Developer Dashboard enables you to:

  • Initiate full refunds for charges in the Pending, Incurred, In Progress, or Billed charge statuses.
  • Cancel a refund as long as the refund is still Refund Pending or Refund Incurred..
  • See the charge status change to Refund In Progress after Clover begins processing the refund.
  • If the refund completes successfully, the charge status changes to Refunded.
  • If the refund fails, it changes to Refund ACH Reject.

To initiate refunds, follow these steps:

  1. On the Developer Dashboard > Billing section, search for a specific transaction or merchant.
  2. Click a transaction to open the Billing History panel.
  3. Select an app and view the charges on the app in various statuses.
  4. Click a transaction charge to display the Charge Details panel.
  5. Click Refund Charge to refund charges in the Pending, Incurred, In Progress, or Billed statuses.
  6. Clover creates a new charge in the Refund Pending charge status.
  7. If the merchant account is in the Lapsed status, the charge goes into the Refund Incurred charge status. The workflow resumes when the merchant fixes their bank account.
  8. If needed, you can still cancel the refund before it goes to the Refund In Progress charge status.
  9. On the first of the following month the refund charge status changes to Refund In Progress.
  10. After the refund is successful, the charge status changes to Refunded.
  11. If the refund fails, the status changes to Refund ACH Reject.

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NOTE

When charges are in the Disbursed status, you can’t initiate refunds from the dashboard. Contact the Clover App Market team to discuss options for refunding older charges.

Refunds for subscription upgrades and downgrades

When a merchant changes subscription tiers or uninstalls an app, Clover creates a new Refund Downgrade Pending charge, and adjusts the prorated amount in the next billing cycle.

  • If the merchant account is in the Lapsed status, the charge goes into the Refund Downgrade Incurred charge status. The workflow resumes when the merchant fixes their bank account.
  • On the first of the following month, the refund charge status changes to Refund Downgrade In Progress.
  • After the refund is successful, the charge status changes to Refunded Downgrade.
  • If the refund fails, the status changes to Refund Downgrade ACH Reject.

Analyzing a refund

You can track the refund with a unique Refund Charge ID which is associated with the original charge being refunded. View this charge in the Charge Details pane of the transaction.

Alternatively, you can handle this within your app. Clover’s Developer Agreement recommends this as your responsibility in Part 1, section 8.5.

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IMPORTANT

This process fails or remains incomplete if the merchant's bank account is ACH reject. Alternatively, it may debit the wrong account if it has sufficient funds and their bank account isn't updated on the merchant account.

Getting paid

You can view the amount Clover disbursed to you and the transactions in various statuses in the Billing section on the Developer Dashboard. View your monthly statements in the Statements section to see the exact charges to merchants and the amount disbursed to you.

The Billing section shows you the following information on the amounts charged to merchants for your apps and the amounts disbursed to you.

Total Number of Charges: Total number of charges to billable merchants

Total Billable Merchants: Total number of billable merchants

The Statements section shows you the Total Charge and Disbursed amounts for a billing cycle. The disbursed amount is your share of the total charge to merchants. The amount will vary depending on refunds and delays with collecting amounts from merchants. For example, refunding a charge or a delay in collecting a charge from a merchant may cause that portion of your payment to roll over to the next month.

You can see the tax amount against each charge on your statement. See how order totals are calculated.

In the scenario that a merchant was ACH reject and accumulated incurred charges over a long period of time until the merchant reactivated their account, Clover debits the amount in the next month. Clover pays your share 45 days after they collect the amount from the merchant. However, if the amount to be collected is higher than the balance in the merchant's bank account, then the transaction can be ACH reject again. So merchants must be aware that reactivating their account means they may have a large debit amount request from their bank in the following month.

Updated 2 months ago


Billing lifecycle


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