Payment method clause: Copy, customize, and use instantly
Introduction
A payment method clause outlines the types of payment methods accepted for transactions under the Agreement. This clause ensures that both parties clearly understand how payments will be made, providing a framework for the payment process and helping to avoid any disputes related to payment procedures.
Below are templates for payment method clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard payment method clause
This version includes basic provisions for payment methods.
All payments under this Agreement will be made via [preferred payment method, e.g., bank transfer, credit card, PayPal]. Payments will be made to the following account or recipient details:[Party B’s name or bank account details][Payment account number, if applicable] Payments are due [X] days after the invoice date unless otherwise specified.
Payment method clause with provision for multiple payment options
This version applies to multiple payment options.
[Party A] may make payments using any of the following methods:Bank transfer to [Party B’s bank details]Credit card payment (Visa, MasterCard, American Express)PayPal transfer to [Party B’s PayPal email address]Check payable to [Party B’s name] The payment method will be chosen by [Party A] at the time of payment, and any associated transaction fees will be borne by [Party A].
Payment method clause with provision for late payments
This version applies to late payments.
Payments made under this Agreement are due within [X] days of the invoice date. If payments are not made within the specified period, [Party B] reserves the right to impose a late fee of [X]% of the outstanding amount per day/week. The late fee will apply to all unpaid balances after [X] days.
Payment method clause with provision for third-party payment
This version applies to third-party payment.
[Party A] may choose to make payments via a third party, provided that [Party A] informs [Party B] in writing at least [X] days prior to the payment date. The third party must be authorized to make payments on [Party A]’s behalf, and [Party B] agrees to accept payments from the third party in the same manner as if made by [Party A].
Payment method clause with provision for escrow payments
This version applies to escrow payments.
For the duration of this Agreement, [Party A] agrees to deposit the agreed-upon amount into an escrow account managed by [Escrow Agent]. Payments will be released to [Party B] based on the completion of agreed milestones or deliverables, as verified by both parties. The release schedule and conditions will be outlined in the milestone schedule.
Payment method clause with provision for foreign currency transactions
This version applies to foreign currency transactions.
All payments under this Agreement will be made in [specified currency, e.g., USD, EUR]. If payments are made in a foreign currency, the exchange rate used will be the rate provided by [Bank/Financial Institution] on the date the payment is processed. Any exchange rate fees or differences will be borne by [Party A].
Payment method clause with provision for electronic payments
This version applies to electronic payments.
[Party A] agrees to make payments via electronic funds transfer (EFT) to [Party B]’s designated bank account. Electronic payments must be processed by [Party A] within [X] days of the invoice date. [Party B] will provide [Party A] with bank account details necessary to complete the transfer.
Payment method clause with provision for prepayment
This version applies to prepayment.
[Party A] agrees to make a prepayment of [X]% of the total contract value before the commencement of work under this Agreement. The prepayment will be credited against the final invoice. The remaining balance is due upon completion of the work or delivery of the final product, as outlined in the payment schedule.
Payment method clause with provision for payment via credit card
This version applies to credit card payments.
[Party A] agrees to make payments using a credit card. The accepted credit card types are [Visa, MasterCard, American Express, etc.]. Payments will be processed immediately upon receipt of the invoice, and any processing fees associated with credit card payments will be borne by [Party A].
Payment method clause with provision for installment payments
This version applies to installment payments.
Payments for the total contract amount will be made in installments according to the following schedule:First payment of [X]% due upon contract executionSecond payment of [X]% due upon delivery of [specific milestone]Final payment of [X]% due upon completion of the project Each payment will be made via [preferred payment method] as specified in the payment schedule.
Payment method clause with provision for payment via wire transfer
This version applies to wire transfer payments.
All payments under this Agreement will be made by wire transfer to [Party B]’s designated bank account. Bank details for wire transfers are as follows:Bank Name: [Bank Name]Account Name: [Account Name]Account Number: [Account Number]SWIFT/BIC Code: [SWIFT Code]
Wire transfers must be completed within [X] days of receipt of the invoice.
Payment method clause with provision for payment terms
This version applies to payment terms.
[Party A] agrees to make payments for all invoices issued under this Agreement within [X] days of the invoice date. Payments will be made by [preferred payment method], unless otherwise agreed upon by both parties in writing. Late payments will be subject to [X]% interest per month, calculated from the due date.
Payment method clause with provision for credit-based payments
This version applies to credit-based payments.
[Party A] agrees to make payments under this Agreement using a line of credit provided by [Party B]. Payments will be drawn from the credit line and applied to the outstanding balance on a monthly basis. [Party A] will ensure that the credit line is sufficient to cover payments and any associated fees.
Payment method clause with provision for adjustment of payment terms
This version applies to adjustment of payment terms.
Either party may request a change to the payment method or schedule by providing written notice at least [X] days in advance. The requested changes must be mutually agreed upon in writing, and any adjustments to the payment terms will be reflected in a revised payment schedule.
Payment method clause with provision for wire transfer fees
This version applies to wire transfer fees.
[Party A] agrees to cover any fees associated with wire transfers, including bank fees or intermediary bank charges. The total payment amount will reflect the wire transfer fees, ensuring that the full invoice amount is paid to [Party B].
Payment method clause with provision for dispute over payment method
This version applies to dispute over payment method.
If a dispute arises regarding the method of payment or the amount owed, both parties agree to resolve the matter through negotiation or, if necessary, alternative dispute resolution methods such as mediation or arbitration. Payments will be held in escrow pending resolution of the dispute.
Payment method clause with provision for multiple payment methods
This version applies to multiple payment methods.
[Party A] may choose to make payments using any of the following methods:Bank transfer to [Party B]'s designated accountCredit card (Visa, MasterCard, American Express)PayPal to [Party B]'s PayPal account
The method chosen for each payment will be at [Party A]’s discretion, and any applicable transaction fees will be borne by [Party A].
Payment method clause with provision for advance deposit
This version applies to an advance deposit.
[Party A] agrees to make an advance deposit of [X]% of the total contract amount before work begins. This deposit will be credited towards the final invoice, and the remaining balance will be due upon completion of the deliverables.
Payment method clause with provision for electronic wallet payments
This version applies to electronic wallet payments.
[Party A] may make payments through electronic wallet services such as [PayPal, Venmo, etc.]. Payments will be made to [Party B]'s account on the relevant platform. The payment will be considered complete once the funds have been successfully transferred and accepted by [Party B].
Payment method clause with provision for early payment discount
This version applies to early payment discount.
[Party A] will receive a [X]% discount on the total invoice amount if payment is made within [X] days of receipt of the invoice. This discount will only apply if the full amount is paid using one of the accepted payment methods, including bank transfer or credit card.
Payment method clause with provision for automatic payment
This version applies to automatic payment.
[Party A] agrees to set up automatic payments for all amounts due under this Agreement. Payments will be made via [credit card, bank transfer, or other method] on the [X] day of each month. [Party A] will ensure that sufficient funds are available to cover each payment.
Payment method clause with provision for payment disputes
This version applies to payment disputes.
In the event of a dispute regarding any payment, [Party A] agrees to notify [Party B] within [X] days of the disputed payment. Both parties agree to work in good faith to resolve the issue promptly. Until the dispute is resolved, the undisputed portion of the payment must still be made.
Payment method clause with provision for payment via cheque
This version applies to payment by cheque.
[Party A] agrees to make payments via cheque, payable to [Party B], at the address specified in the Agreement. All cheques must be submitted within [X] days of receipt of the invoice. Any cheque that is returned due to insufficient funds will result in a late payment penalty as outlined in this Agreement.
Payment method clause with provision for recurring payments
This version applies to recurring payments.
[Party A] agrees to make recurring payments of [X] amount every [month/quarter/year], via [bank transfer, credit card, etc.], until the total contract value is paid in full. The first payment will be due on [specific date], with subsequent payments made on the [specified day] of each [month/quarter/year].
Payment method clause with provision for reimbursement payments
This version applies to reimbursement payments.
[Party B] will be reimbursed for any pre-approved expenses incurred in the performance of the Agreement. Reimbursement payments will be made via [bank transfer, PayPal] within [X] days of receipt of valid receipts and supporting documentation.
Payment method clause with provision for foreign currency payments
This version applies to foreign currency payments.
[Party A] agrees to make payments in [specified currency, e.g., USD, EUR] for services or deliverables provided by [Party B]. If payments are made in a currency other than the specified one, the exchange rate used will be determined by [Bank/Financial Institution] on the date the payment is processed.
Payment method clause with provision for milestone-based payments
This version applies to milestone-based payments.
Payments for the work completed under this Agreement will be made in accordance with the following milestone schedule:First payment of [X]% upon completion of [Milestone 1]Second payment of [X]% upon completion of [Milestone 2]Final payment of [X]% upon completion of [Milestone 3] Payments will be made via [bank transfer/credit card] within [X] days of completion of each milestone.
Payment method clause with provision for PayPal payments
This version applies to PayPal payments.
[Party A] agrees to make payments via PayPal to the email address [Party B’s PayPal address]. Payments should be processed within [X] days of receiving the invoice. [Party B] will cover PayPal transaction fees unless otherwise agreed upon.
Payment method clause with provision for split payments
This version applies to split payments.
If the total payment for services exceeds [X] dollars, [Party A] may request to split the payment into two or more installments. Each installment will be due [X] days apart, and payments will be made using [preferred payment method, e.g., bank transfer or credit card].
Payment method clause with provision for wire transfer fees
This version applies to wire transfer fees.
[Party A] will cover any wire transfer fees incurred during payments under this Agreement. If [Party A] chooses to pay via wire transfer, [Party A] will ensure that the full invoice amount is transferred, including any associated fees. [Party B] will not be responsible for these fees.
Payment method clause with provision for payment via ACH transfer
This version applies to ACH transfers.
Payments will be made via ACH (Automated Clearing House) transfer to [Party B]’s designated bank account. [Party A] will ensure that all ACH transfers are completed within [X] days of receipt of the invoice. [Party B] agrees to provide necessary bank details for ACH payments.
Payment method clause with provision for credit limit on payments
This version applies to credit limit on payments.
[Party A] agrees to make payments up to a maximum credit limit of [X] per billing cycle. Any payment exceeding this limit must be approved by [Party B] before being processed. [Party A] will be notified if the payment exceeds the limit, and payment will be delayed until approval is received.
Payment method clause with provision for early settlement discount
This version applies to early settlement discount.
[Party A] will receive a [X]% discount on the total invoice if the payment is made within [X] days of the invoice date. This discount will be applied to the final payment due under this Agreement, and the payment method must be [preferred payment method].
Payment method clause with provision for no payment method changes
This version applies to no changes in payment method.
Once agreed upon, [Party A] will not change the payment method without prior written approval from [Party B]. If a change in payment method is required, [Party A] will submit a written request at least [X] days prior to the next payment due date.
Payment method clause with provision for payment via cryptocurrency
This version applies to cryptocurrency payments.
[Party A] agrees to make payments via cryptocurrency (e.g., Bitcoin, Ethereum) to [Party B]’s designated cryptocurrency wallet address. The exchange rate for cryptocurrency payments will be determined at the time of payment based on the current market value. Transaction fees associated with cryptocurrency payments will be borne by [Party A].
Payment method clause with provision for installment payment due dates
This version applies to installment payment due dates.
The payment for services under this Agreement will be made in [X] equal installments. Each installment payment is due on the [X]th day of each month, starting on [start date]. Payments will be made via [bank transfer, credit card, etc.] as agreed.
Payment method clause with provision for payment adjustments
This version applies to payment adjustments.
If [Party A] makes a partial payment or if there are adjustments to the payment due to discrepancies or refunds, [Party B] will provide an updated invoice reflecting the adjusted amount. [Party A] agrees to pay the adjusted amount within [X] days of receiving the updated invoice.
Payment method clause with provision for overpayment handling
This version applies to overpayment handling.
If [Party A] overpays an invoice, [Party B] will notify [Party A] and either refund the overpaid amount or apply the overpayment toward future invoices. Any overpayment must be reported within [X] days of receipt of the payment.
Payment method clause with provision for payment receipt acknowledgment
This version applies to payment receipt acknowledgment.
[Party B] will send an acknowledgment of receipt for each payment made by [Party A]. The acknowledgment will be sent via email or other mutually agreed communication methods. If no acknowledgment is received within [X] days of making the payment, [Party A] is required to notify [Party B].
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