Purchase on account: definition and all information

Buying on account is one of the most popular and most used payment methods because it offers a lot of freedom for the consumer. You can find out exactly how this procedure works in this article.

The definition of purchase on account

The invoice purchase can be defined as follows: When purchasing on account, the company sends the ordered goods including the invoice to the recipient. Payment is only made upon receipt of the goods within a specified period.

• In a concrete example, person A would have ordered something in shop XY. The company then sends the package to the person and encloses the invoice for the goods.
• If the consignment has arrived at person A, the person must pay the amount within the period stated on the invoice.
• As a rule, the payment period is 14 days, but it can be shorter in the invoice itself or even set as due immediately. If this period is exceeded, you will first receive a reminder with a corresponding fee.
• Should you ever be unable to pay an amount within the specified period, you should inform the company. This is because there is an option to defer payment with appropriate default interest.

The special features of a purchase on account

Perhaps one of the most important advantages for you as a buyer is that you do not have to provide any details about your account or your credit card.

• You can also check the goods before you have paid for them. This makes returning items of clothing particularly convenient for you as a buyer. That is the reason why buying on account brings a lot of security for you.
• Imagine the following situation: You urgently need an item, but currently you may not have enough money in your account because the salary has not yet been paid. This can be bridged with a purchase on account, because you only have to pay the amount later and then have a sufficient amount again.
• Such purchases always involve a certain risk for the seller, since the company cannot carry out a credit check on every person.

Perhaps you have already noticed that online shopping on a smartphone is more expensive than on a PC. We'll explain why in our next article.