Early payment discounts are proven to improve collection times, yet neither Xero nor QuickBooks offers native automation for this feature.
This guide shows you how to automatically apply and manage prompt payment discounts using Paidnice.
What You'll Learn
Creating percentage or fixed-amount discount policies.
Setting time-limited discount periods.
Configuring automatic notifications.
Managing discount application rules.
Step 1: Create Your Discount Policy
Navigate to your group in Paidnice.
Click Add New Automation Policy.
Select Prompt Payment Discount.
Name your policy (e.g., "5% Early Payment Discount").
Step 2: Configure Discount Settings
Discount Type
Percentage: (e.g., 5% off total invoice).
Fixed Amount: (e.g., $10 off regardless of invoice size).
Application Rules
New invoices only: Apply to future invoices.
All unsent invoices: Include existing drafts.
Discount Duration
Set how long customers have to claim the discount:
7 days from issue date (recommended)
X days before due date
Custom period with weekday calculations
Step 3: Set Up Line Item Details
Select your discount chart of account.
Customize the line item description:
Default: "Prompt payment discount (5%)"
Custom: "Save 5% - pay by [date]"
Step 4: Configure Email Notifications
Enable "Send email notification when applied" to:
Inform customers about the discount immediately
Include discount amount and expiry date
Provide payment link with discounted total
Step 5: Advanced Settings (Optional)
Exclude Specific Items
Protect certain revenue streams from discounting:
Click Exclude line items.
Select chart of accounts to exclude (e.g., rent, subscriptions).
Date Filters
Apply discounts selectively:
Only to invoices due after specific date.
Exclude overdue invoices.
Target specific customer segments.