Gift cards work by being present as credits on an invoice. If a customer redeems a gift card to pay a past-due invoice that is currently in dunning, you will need to take a couple of steps to apply the credits correctly.
To use a gift card to pay a past-due invoice:
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Close the past-due invoice to remove it from the dunning process.
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Generate a new invoice. This new invoice will then include the applicable credits from the gift card, and the payment will be correctly applied to the balance.
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