Lob Credits

Source Link: https://help.lob.com/account-management/billing/lob-credits
# Lob Credits ## What are Lob Credits? * Lob Credits have a 1:1 USD value and can be used for print and mail usage and related taxes. * Fund your Lob Credits as needed (or automate the process) to ensure you have sufficient funds prior to sending mail. * Have visibility and control over your Lob Credits balance in the Lob dashboard. We are committed to optimizing your direct mail experience and serving you within the most ideal framework. With Lob Credits, you’ll have full control over your expenses, can plan and budget more effectively, and can benefit from greater financial predictability. The following is an overview we encourage you to review with your Accounts Payable and Finance departments to understand how to fund your mail sends with Lob Credits. ## How do I fund my Lob Credits? A customer will fund their Lob Credits differently depending on what payment process/method they prefer, but they can do it ad-hoc, or take advantage of available automation to support ongoing funding. Select the situation that applies to you to learn more.

I have a payment method on file with Lob (I pay via Credit Card or ACH auto-draft)

* You can fund your Lob Credits using your payment information on file, i.e., Credit Card or ACH “pull." * You can do this anytime ad-hoc on the Lob Dashboard OR you can set up autopay, either based on a regular schedule or threshold. #### Funding Lob Credits (payment method on file): 1. From the Billing > Lob Credits tab, select "Add Credits" 2. On the Add Lob Credits screen fill out: * Funding Type: * One-time Payment * _Want to automate? See below for more on_ [_auto pay_ ](#set-up-auto-pay)_options_ * Payment Method: Credit Card or ACH auto-draft * Will auto-populate from Payment Method on file (Billing -> Payment Method), or you can Edit. * Credit card payments will incur a 3% processing charge. 3. Confirm action 4. You will receive an email notification when funds are posted and Lob Credits are available for use. (You can indicate who should receive Lob Credits notifications under Billing > Preferences.) #### Set up Auto Pay You can automate payment to ensure funds are always available when you need to send mail. There are two types of [Auto Pay - Recurring](#auto-pay-recurring) (based on time) and [Auto Pay - Threshold](#auto-pay-threshold) (triggered from user-defined Lob Credit balance). #### **Auto Pay - Recurring** 1. From the Add Lob Credits screen, select Funding Type: Recurring 2. Fill in: * Name * Cadence * Weekly: Initiates payment for the user-defined amount on the 1st, 8th, 15th, and 22nd of the month * Monthly: Initiates payment on the 1st of each month * Quarterly: Initiates payment on the 1st day of each fiscal quarter (Jan 1, Apr 1, July 1, Oct 1) * Amount 3. Payment Method is separate from Funding Type; after you up the trigger, you can select payment method. 4. Confirm action. #### **Auto Pay - Threshold** 1. From the Add Lob Credits screen, select Funding Type: Threshold 2. Fill in: * Name * Threshold Amount: When Lob Credits balance is less than this amount, payment will be triggered * Refill Amount: When a payment is triggered, it will be for this amount 3. Payment Method is separate from Funding Type; after you up the trigger, you can select payment method. 4. Confirm action.

I DO NOT have a payment method on file with Lob (I pay via Invoice)

Many Accounts Payable teams require documentation to send funds. With that in mind, we’ve made it easy to generate a customizable invoice-on-demand from the Lob dashboard to send to your Accounts Payable team to request funds for your Lob Credits. This feature is exclusive to Enterprise customers. Upgrade your [Print & Mail edition](https://dashboard.lob.com/#/settings/editions) to gain access to this mail format, or reach out to our [sales team](https://www.lob.com/sales) to learn more. #### **Generate a Lob Credits invoice-on-demand:** 1. From the Lob dashboard, under Billing > Lob Credits you will select “Add Lob Credits” 2. From the Add Lob Credits screen, fill out the following to generate an **invoice-on-demand:** * Funding Type: * One-time Payment * _Want to automate? See below for more on_ [_Auto Invoice_](#set-up-auto-invoice) * Payment Method * Net Terms (choose your own net terms to coincide with your Accounts Payable policies and processes) * Requested By (auto-generated) * Note to your Billing/AP Dept (Description of what the funds are for) * PO# _(optional)_ * AP Email (auto-generated from Billing Preferences) * Additional Email(s) to send to _(optional)_

3. Confirm action 4. You will receive an email notification when funds are posted and Lob Credits are available for use. (You can indicate who should receive Lob Credits notifications under Billing > Preferences.) #### Set up Auto Invoice You can automate the generation of invoice-on-demand to ensure funds are always available when you need to send mail. There are two types of automation, [Auto Invoice - Recurring ](#auto-invoice-recurring)(based on time) and [Auto Invoice - Threshold](#auto-invoice-threshold) (triggered from user-defined Lob Credit balance). #### **Auto Invoice - Recurring** 1. From the Add Lob Credits screen, select Funding Type: Recurring 2. Fill in: * Name * Cadence * Weekly: Generates an invoice for the user-defined amount on the 1st, 8th, 15th, and 22nd of the month * Monthly: Generates on the 1st of each month * Quarterly: Generates on the 1st day of each fiscal quarter (Jan 1, Apr 1, July 1, Oct 1) * Amount 3. Payment Method is separate from the Auto Invoice triggers; after you up the trigger, you can choose which option is most appropriate for your needs. #### **Auto Invoice - Threshold** 1. From the Add Lob Credits screen, select Funding Type: Threshold 2. Fill in: * Name * Threshold Amount: When Lob Credits balance is less than this amount, an invoice will be triggered * Refill Amount: When an invoice is triggered, it will be for this amount 3. Payment Method is separate from the Auto Invoice triggers; after you up the trigger, you can choose your payment method.

For contracted customers, the Lob dashboard defaults to the method outlined in your payment terms. To update, please reach out to your Account Manager. ## How soon will I be able to use my Lob Credits? {% hint style="warning" %} You must have sufficient Lob Credits to send mail; therefore, it is essential to understand the process and timing of funding your Lob Credits. {% endhint %} Lob Credits will be available when funds are fully settled in Lob Bank accounts; you will receive an email notification when this occurs and Lob Credits are available for use. Lob will continue to accept multiple forms of payment methods; reference [Lob Payment Methods ](lob-payment-methods)for more information on this and funds availability. * **For credit card,** Lob Credits will typically be available immediately upon successful charge. * **For all other payment methods**, timing will depend on your Accounts Payable processes, as well as payment method and funds availability. _Sample timing for Lob Credits availability for invoice-on-demand:_ {% tabs %} {% tab title="Ex: Net 0" %} The timing of adding Lob Credits is dependent on **net terms set by the customer and your internal approval processes.** For example, if your Accounts Payable department has net 0 terms, you will want to create a Lob Credits invoice-on-demand at least a week before you need to send mail.

Customer generates Lob Credits invoice-on-demand; invoice is sent to customer’s Accounts Payable department	Day 0
Customer's net terms and AP processing time	+1 days
Bank processing time to settle funds	+3-5 business days
Total	~6 days from the date of request

{% endtab %} {% tab title="Ex: Net 30" %} The timing of adding Lob Credits is dependent on **net terms set by the customer and your internal approval processes.** If your Accounts Payable department has net 30 terms, you will want to create a Lob Credits invoice-on-demand at least 35 days prior to the day you need to send mail.

Customer generates Lob Credits invoice-on-demand; invoice is sent to customer’s Accounts Payable department	Day 0
Customer's net terms and AP processing time	+30 days
Bank processing time to settle funds	+3-5 business days
Total	~35 days from date of invoice request

{% endtab %} {% endtabs %} Please coordinate between the individual who is initiating the request for replenishment and Accounts Payable to ensure there is proper lead time for any internal approvals and payment initiation to ensure there are sufficient funds in your Lob Credits accounts prior to sending mail. {% hint style="success" %} To ensure sufficient funds at the time of send, you can automate adding Lob Credits: * If you have a payment method on file, set up [Auto Pay ](#set-up-auto-pay) * If you do not have a payment method on file, set up [Auto Invoice](#set-up-auto-invoice) {% endhint %} ## Managing Lob Credits In the dashboard, under Billing there is a tab called Lob Credits; from here you can view and manage your Lob Credits: * View your Lob Credits balance * Add Lob Credits * Manage automated schedules (click the small arrow in the upper left of auto schedule information block) * Detail tabs: [Activity](#activity) & [Statements](#lob-credits-statements) ### Lob Credits Activity On the Lob Credits landing page, click on Activity to view Pending and finalized, or Posted, Lob Credits activity such as usage drawdowns, Lob Credits added, and print & mail adjustments.

Activity dashboard

### Lob Credits Statements Because you are pre-funding your mail sends, you will receive a monthly statement. Lob Credits monthly statement will include beginning balances, usage, replenishments, credits/adjustments, sales tax, and ending balances. * A monthly statement will be sent to the Accounts Payable email accounts we have on file. If you would like to edit this, see Billing > [Billing Preferences](..#redeeming-account-credits-6) in the dashboard. * Additionally, Lob Credits statements will be available in the Lob dashboard, under Billing > Lob Credits > Statements

sample Monthly Statement

### User permissions for Lob Credits * **Admin:** Can create and edit payment methods, add lob credits, create invoices, update Billing preferences * **Read/Write:** Can add lob credits, create invoices * **Read:** Can see Lob Credits balance ## Invoices All invoices and their statuses will still be available under the Billing > Invoices tab. * **Because you are pre-funding your mail sends,** **Lob will no longer be issuing invoices for your print & mail usage.** You will, however, receive a [monthly statement.](#will-i-get-a-monthly-statement-for-my-lob-credits) * Upon conversion to Lob Credits, you may receive TWO final invoices: One for usage during the month prior to your transition date, and one for any mail that was _created_ before conversion but _sent_ after conversion. * If you create invoices-on-demand to fund your Lob Credits, these will be visible in your Lob dashboard. * Platform subscription payments, Address Verification services, Premium Support, Professional Services, Lob Audiences, and any related taxes, will all be invoiced as usual per your customer agreement/order form.

Invoices dashboard

## Will I be notified when I run out of Lob Credits? {% hint style="success" %} Yes! Regardless of how you send direct mail with Lob, all users will be notified when your Lob Credit balance reaches zero via email and in the dashboard. {% endhint %} Additionally, * **Print & Mail API:** You will receive a 200 OK API response even if Lob Credits balance reaches zero. After 5/1, if Lob Credits balance is below zero, mailpieces will be placed into “[Funding Hold.](#what-if-i-do-not-have-enough-lob-credits-for-my-campaign)” * **Campaigns API:** You will receive a 200 OK API response even if their Lob Credits balance reaches zero. After 5/1, you will receive a 422 error response if you do not have enough Lob Credits. Mailpieces will be placed into “[Funding Hold](#what-if-i-do-not-have-enough-lob-credits-for-my-campaign).” * **Campaigns tool:** You will be presented with an estimated cost of your Campaign and can place the order. Beginning 5/1: * A pop-up will be presented if you do not have sufficient Lob Credits * You will be directed to Add Funds & Place Order. * You will be able to add funds almost immediately (with a credit card on file) OR be directed to Billing to fund your Lob Credits. * In either case, your Campaign will be saved as a Draft

### Who will get Lob Credits notifications? Under Billing > [Preferences](https://dashboard.lob-staging.com/billing/preferences), Admin users can indicate which Accounts Payable emails receive Lob Credits notifications (Lob Credit availability, zero balance, etc.). You can also opt-in to receive an email notification if your Lob Credits dip below a certain threshold (that you determine).

{% hint style="success" %} To ensure sufficient funds at the time of send, you can automate adding Lob Credits: * If you have a payment method on file, set up [Auto Pay ](#set-up-auto-pay) * If you do not have a payment method on file, set up [Auto Invoice](#set-up-auto-invoice) {% endhint %} ## Funding Hold If you do not have enough Lob Credits to send mail, i.e., when Lob estimates there are insufficient funds to send mailpieces, they will go into _Funding Hold_ status. **Mailpieces will still be created, but not sent.** You can view the total dollar amount of mailpieces in Funding Hold on the Lob Credits home screen.

Once Lob receives payment, we will re-evaluate all mailpieces in Funding Hold and release the paid mailpieces to a printer. Mailpieces will be released first in, first out (FIFO) based on Date Created. If your payment does not cover all mailpieces in Funding Hold, those that are not paid will re-enter Funding Hold. {% hint style="warning" %} **Canceling mailpieces in Funding Hold** This functionality is on our roadmap; if you need to cancel mailpieces in Funding Hold, please contact [[e-mail].](mailto:[e-mail]) {% endhint %} ## Other FAQs

Do Lob Credits expire?

Lob Credits will not expire. Any amounts due at the end of the contract or termination of the customer relationship will be refunded, after final reconciliation.

I already paid a Prefund Amount, what will happen to that?

At launch, your Prefund Amount balance will automatically be converted to your Lob Credits Beginning Balance. All mail usage ordered and sent from that date forward will be deducted from your Lob Credits balance. You may not need to take immediate action upon launch as you will likley have Lob Credits to draw from, but we do recommend understanding the process (and timing) around funding your Lob Credits, so you can replenish in advance of sending mail.

My company requires every invoice to be tied to a specific Purchase Order, how will this work if Lob is not issuing usage invoices any longer?

When you create a Lob Credits [invoice-on-demand](#i-do-not-have-a-payment-method-on-file-with-lob-i-pay-via-invoice) you can input a Purchase Order number (optional field); your Accounts Payable department will then be able to match the invoice to the approved PO.

My company issues monthly or quarterly budgets, how will I manage my Lob Credits with my budget?

However you fund your Lob Credits, there is an option to set up automation so you can ensure funds are always available when you need to send mail. * [If you have a payment method on file with Lob,](#i-have-a-payment-method-on-file-with-lob) you can set up autopay to occur on a set cadence, or at a certain threshold. * [If you DO NOT have a payment method on file with Lob,](#i-do-not-have-a-payment-method-on-file-with-lob) you can set up recurring invoice-on-demand generation (weekly, monthly, quarterly, etc.) for Lob Credits You will need to keep in mind that any ad-hoc, high-volume campaigns will need advance financial planning to ensure sufficient Lob Credits are available in your account before campaign execution. To ensure there are sufficient funds to send mail when needed, it is recommended that you have at minimum quarterly budgets/PO set up and approved (vs. monthly or less).

I send mail irregularly, or on a quarterly or annual basis; do I need to maintain a minimum balance at all times?

No! You can manage your Lob Credits any way you would like, as long as there are sufficient funds before you send mail.

Will I be notified when I am about to exceed my mailing limits, which have various pricing tiers and overage fees?

Your Account Manager will closely monitor your subscription and mailing limits, and let you know proactively when you are reaching your limit. We plan on building features to improve this experience after our initial launch.

I need to manage multiple Billing Groups separately as each department has a different budget; how will this work?

Billing Group is not currently supported. In a future release (target Q3), you will have the ability to allocate Lob Credits to one or many Billing Groups.

I have multiple Billing Groups, but I want to manage my Lob Credits at the account level, not at a Billing Group level; how will this work?

Billing Group is not currently supported. When the ability to support Billing Groups has launched (target Q3), you will be able to manage Lob Credits at the account level. Usage will be deducted from your Lob Credits on a “first in, first out” basis.