Collecting Partial Payments and Using Multiple Cards

In this article:

• When to Use Partial Payments vs. Payment Plans
• Enabling Partial Payments on Invoices
• Setting Minimum Payment Amounts
• Client Experience: Paying Invoices with Partial Payments
• Common Use Cases for Partial Payments
• Best Practices for Partial Payments
• Next Steps

When to Use Partial Payments vs. Payment Plans

Both partial payments and payment plans help clients pay over time, but they serve different purposes and work in distinct ways.

Use Payment Plans When:

• You need automated, scheduled installments (not client-initiated) 
• You're setting up recurring billing for ongoing services 
• You want the system to automatically charge saved payment methods without client action 
• You need structured billing with predictable payment dates

Payment plans are ideal for packages, programs, memberships, or any situation requiring multiple scheduled payments over time.

Learn more about Setting Up Payment Plans in Practice Better →

Use Partial Payments When:

• Clients need flexibility to pay when ready (not on a fixed schedule)
• The client needs flexibility in payment timing and amount
• Clients want to use different cards for different portions
• You're handling one-time flexibility rather than ongoing billing
• Clients need to pay down a balance gradually at their own pace

Partial payments are perfect for clients facing temporary financial constraints, those who want to split payment across two or more different funding sources (like HSA + personal card), or situations where payment timing is uncertain.

💡 Tip: Payment plans provide structure and automation. Partial payments provide flexibility and client control. Choose based on your billing relationship and client needs.

Enabling Partial Payments on Invoices

Partial payments are disabled by default on all invoices. You must intentionally enable this option when creating or editing an invoice.

Setting Up Partial Payments

1. Create a new invoice or open an existing invoice to edit.
   • Learn more about Creating and Managing Invoices in Practice Better →
      
2. Scroll to the Payment Options section (near the bottom of the invoice).
    
3. Ensure Accept payment for this invoice using Practice Better is checked.
   
    
4. Select the radio button for Allow client to make partial payment(s).
   

Once selected, the Partial Payment Options section appears below, where you'll configure the minimum payment required.

Setting Minimum Payment Amounts

When partial payments are enabled, you define how much the client must pay each time they make a payment. This prevents clients from making tiny incremental payments and ensures meaningful progress toward the balance.

Two Options for Minimum Payments:

1. Percentage-Based Minimum

Set the minimum as a percentage of the original invoice total.

Example:

• Invoice total: $300
• Minimum percentage: 25%
• Minimum payment required: $75 (calculated automatically)

When to use: When you want payments proportional to the invoice size, or when you're working with variable invoice amounts and want consistent payment ratios.

2. Flat Amount Minimum

Set a specific dollar amount that must be paid each time.

Example:

• Invoice total: $300
• Flat minimum amount: $200
• Minimum payment required: $200

When to use: When you have a specific payment structure in mind, or when you want to ensure the first payment covers a substantial portion of the balance.

How to Configure Minimum Payments:

1. After enabling Allow client to make partial payment(s), the Partial Payment Options section appears.
    
2. Select Payment type:
   • Percentage – then enter the percentage amount (e.g., 25, 50)
   • Flat amount – then enter the dollar amount (e.g., 200.00)
      
3. The system calculates and displays the minimum payment amount based on your selection.
    
4. Click Save to apply the partial payment settings to the invoice.

Client Experience: Paying Invoices with Partial Payments

Understanding what clients see helps you guide them through the payment process and answer questions before they arise.

How Partial Payments Work for Clients

When you enable partial payments on an invoice, clients gain complete control over their payment timing and card usage. 

Payment flexibility:

• Make as many partial payments as needed or available until the balance reaches $0
• Pay the minimum amount or pay more (including full balance) at any time
• Choose when to make each payment — no automatic charges or scheduled due dates
• Use the same card for all payments or switch cards between payments

Payment method usage freedom:

• Same payment method for all payments — convenience and consistency
• Different payment method for each payment — access to multiple funding sources
• Mix and match payment methods — use whatever card has available funds at payment time
• Switch payment methods between payments — no restrictions or limitations

This flexibility is especially valuable when clients want to maximize HSA/FSA benefits, combine gift cards with personal cards, or manage payments across different accounts.

💡 Tip: When clients ask about splitting payment across different cards, confirm their invoice has partial payments enabled and walk them through the split-payment process.

What Practitioners See

As clients make partial payments, you'll see updates in real-time:

Invoice status tracking:

• "Partially Paid" status after first payment (until fully paid)
• Updated remaining balance displays after each payment
• Payment history shows each transaction with date, amount, and payment method used
• Email receipts sent to both you and client for every payment

No action required from you:

• Clients control when they pay
• System automatically updates balances
• Receipts generate automatically
• Invoice closes when balance reaches $0

📍 Note: Invoice reminders work the same way for partially paid invoices as they do for unpaid invoices. If you have automated invoice reminders enabled, clients will continue receiving them until the invoice is paid in full.

First Payment: Opening the Invoice

What the client sees when opening the invoice payment page for the first time:

1. Invoice details (date, number, line items, total amount).
    
2. Under Payment amount, two options appear:
   
   • Pay full amount due (e.g., $150.00)
   • Pay minimum amount due (e.g., $37.50)
      
3. They select Pay minimum amount due if they want to make a partial payment.
    
4. Under Payment method, they select Credit card.
    
5. They enter their card information or select a saved card if available.
    
6. They click Submit Payment.
    
7. Upon successful payment, they receive an email receipt.

What happens next:

• Invoice status changes to "Partially Paid"
• Remaining balance displays for their next payment
• They can return anytime to continue paying

Subsequent Payments: Continuing to Pay Down the Balance

Each time the client returns to pay more toward the invoice:

1. They open the invoice again (from email link, invoice reminder, or Client Portal).
    
2. The invoice displays the updated remaining balance.
    
3. Under Payment amount, they select from:
   • Pay full amount due (remaining balance)
   • Pay minimum amount due (only appears if remaining balance is greater than or equal to the minimum)
      
4. They select their payment method:
   • Use the same card from previous payments (if saved)
   • Enter a completely different card
   • Use any card they prefer
      
5. They submit the payment and receive a receipt.

This process repeats until the invoice is paid in full. Clients have complete control over timing; there are no automatic charges or scheduled due dates.

Example progression showing client-initiated payments:

• Original invoice: $500
• Minimum payment: $150 (30% of original invoice)
• Payment 1: Client pays $150 using HSA card → Remaining balance: $350
• Payment 2: Client pays $150 using personal Visa → Remaining balance: $200
• Payment 3: Client pays $150 using same Visa → Remaining balance: $50
• Payment 4: Client pays $50 (final balance, less than minimum) → Balance: $0 ✓ Paid

📍 Note: The minimum payment is always calculated based on the original invoice amount, not the remaining balance. In this example, the minimum stays $150 throughout, even as the balance decreases.

Final Payment: When Balance Drops Below Minimum

When the remaining balance becomes less than the minimum payment requirement:

What the client sees:

• Only Pay full amount due appears (showing the remaining balance)
• "Pay minimum amount due" option is no longer available
• They must pay the final balance to complete the invoice
• They can still choose which card to use for this final payment

What happens after final payment:

• Invoice status changes to "Paid"
• Client receives the final receipt
• Invoice closes and downloadable PDF shows complete payment history
• All partial payments are recorded with dates and amounts

Example:

• Original invoice: $100, minimum 25% ($25)
• Payment 1: $25 (HSA card) → Balance: $75
• Payment 2: $25 (personal Visa) → Balance: $50
• Payment 3: $25 (different Mastercard) → Balance: $25
• Payment 4: $25 (any card) → Balance: $0 ✓ Paid

This automatic adjustment prevents situations where clients can't close an invoice because the remaining balance is smaller than the minimum payment requirement.

Common Use Cases for Partial Payments

Partial payments work best for specific billing scenarios. Here are real-world situations where this feature shines:

Best Practices for Partial Payments

Set realistic minimums:

• Don't set minimums too low (like 10%) or clients may pay tiny amounts and drag out invoice resolution. A 30-50% minimum ensures meaningful progress while still providing flexibility.

Communicate expectations:

• Let clients know upfront if an invoice has partial payments enabled. Explain they can make multiple payments until the balance is paid, but clarify your expectations for payment completion timeline.

Track partially paid invoices:

• Monitor invoices in "Partially Paid" status regularly. If a client hasn't made progress in several weeks or months, follow up to ensure they haven't forgotten or encountered issues.

Consider payment plans for structured billing:

• If a client needs more than 3-4 payments OR needs automatic scheduled charges, shift to payment plans with fixed installment dates rather than relying on partial payments.

Document payment arrangements:

• Use invoice notes to record any verbal agreements about payment timeline or structure, especially for larger balances that will take multiple payments.

Review payment history:

• When clients make multiple partial payments, review their payment pattern in the invoice history. This helps you understand their payment capacity for future service pricing.

Next Steps

Now that you understand partial payments and multiple card usage, explore these related topics:

• Managing Client Billing Information → Learn how to store, charge, and protect client payment methods.
• Setting Up Payment Plans in Practice Better → Create structured installment schedules for ongoing billing.
• Creating and Managing Invoices in Practice Better → Master all invoice features and payment options.

Partial payments give your clients flexibility when they need it most, while keeping your billing process manageable and professional. Our support team is here if you have questions about enabling partial payments or need help with complex billing scenarios!