The details of our payment system are included in the contract you signed with Handbid. Here is an overview of the process:
Collecting Funds from Handbid Credit Card Transactions
When you elect to process payments from a winning bidder with the Handbid Integrated Payment system, the collected funds transfer directly to our third party credit card processor (STRIPE). These payments then take about 5-business days to clear the credit card processor and be deposited into Handbid's account.
Once your auction closes, you will need to process all credit card transactions before Handbid will reconcile your auction and release your collected funds. If you are using Handbid to sell tickets we recommend you setup your own STRIPE account and use STRIPE CONNCT so that you can collect the ticket sales prior to the event.
YOU WILL HAVE 30 DAY FROM WHEN YOUR AUCTION CLOSES TO COLLECT FUNDS USING THE INTEGRATED HANDBID CREDIT CARD SYSTEM. You can record offline transactions collected by your Credit Card System, Cash, Check, etc longer than 30 days. Collecting money in a timely manner avoids confusion from your bidders and credit card disputes.
Auction Settlement Process
When you have determined that you are done collecting funds through the Handbid's credit card system (i.e., any unpaid invoices will be handled directly by you using external credit card, cash or check), you need to notify us by emailing email@example.com that you are ready to settle your auction.
Once we receive this notification, we will send you a settlement report to review and sign. The report will contains: revenue summary, auction fees/payments summary, and collections summary (See example settlement report below). We will deduct any unpaid auction fees and credit card fees from the amount collected and bottom line is the final payment in most cases to be sent to you. (If your fees exceeds the amount collected by Handbid the Payment Due will be negative and this will be the amount you owe Handbid)
We will send you a email with a link to electronically sign this report.
Once the report has been signed and all funds have cleared our payment processor, we will process your payment . Your payment can be processed as a paper check or epayment. Either payment option usually takes 5-7 business days from when the check was processed until you will receive the funds. If you would like to receive an electronic payment please let us know and we will send you an invite from bill.com to setup your organization to receive an electronic payment directly to your bank.
If you auction closed over 30 DAYS ago and you still have unpaid invoices, we will notify you that the Handbid payment processing functionality will be disabled soon and a settlement report will be sent to you. You will still be able to record payments via external credit card, cash, check, etc. at this time.
Some important considerations regarding receiving payments from Handbid
- At the end of your auction, your objective needs to be reconciling (finalizing) all unpaid invoices. We will not send a settlement report to you until you have notified us that you have no more money to collect through Handbid credit card system. Once your settlement report has been sent, the Handbid Credit Card system will be disabled for your auction.
- We DO NOT auto-charge credit cards. The reason for this is that it reduces the number of disputes and issues related to payments. We need you to confirm with bidders what their winning totals and purchases are prior to charging cards. Or, have bidders pay directly from their phones.
- If your bidders have simply made a purchase or donation and you have no items to deliver to them, you are welcome to charge their cards directly. Again - this is not automatic so you will need to process their charge in the auction manager or have them process the charge on their phone.
- It is often wise to wait a week or so after the event and confirm everyone has received an invoice and paid, prior to notifying us that your auction is complete. I am sure you are eager to get your funds transferred, but we tend to find adjustments to invoices are necessary in the week following an auction. Reconciliation is much smoother and easier if we get through those adjustments first, before we generate final reports and transfer funds.
- If you need to process a refund after we have sent funds to you, you will either need to refund the bidder directly or we will invoice you and once we receive payment on the invoice we can refund the bidders credit card.