Billing & Payments - Frequently Asked Questions
Everything you need to know about invoices, payments, and charges in Velocity Shipping
Table of Contents
- Billing Modes
- Invoices
- Understanding Your Charges
- When Charges Are Applied
- Wallet & Payments
- COD Settlements
- GST Setup
- Common Questions
1. Billing Modes
Q: What billing options are available?
A: Velocity Shipping offers three billing modes:
| Mode | How It Works | Best For |
|---|---|---|
| Prepaid | Add money to wallet first, then ship | New clients, small-volume shippers |
| Postpaid | Ship now, pay later via invoice | Established businesses with credit approval |
| COD Offset | Your COD collections automatically pay your invoices | High-volume COD sellers |
Prepaid
Q: How does Prepaid work? A:
- Recharge your wallet before shipping
- Shipping charges are deducted from your balance automatically
- You need a positive balance to create shipments
Postpaid
Q: How does Postpaid work? A:
- You get a credit limit (e.g., Rs. 50,000)
- Ship without pre-payment up to your credit limit
- Receive invoices at the end of each billing cycle
- Pay within the grace period (typically 7 days)
Q: What if I exceed my credit limit? A: Shipping is paused until you make a payment or your balance is restored.
COD Offset
Q: How does COD Offset work? A:
- When your COD shipments are delivered and settled, that money automatically pays your shipping invoices
- Great if most of your orders are COD - less manual recharging needed!
2. Invoices
Q: When do I receive invoices?
A: Based on your billing frequency:
| Billing Cycle | Invoice Date |
|---|---|
| Monthly | 1st of each month |
| Fortnightly | 1st and 16th of each month |
Q: What charges are included in my invoice?
A: Your invoice includes all charges from the billing period:
| Charge Type | Description |
|---|---|
| Shipping | Forward delivery + RTO charges |
| Smart Features | WhatsApp, AI Calls, RTO risk score |
| Early COD | Fee for faster COD settlement |
| Weight Difference | Extra charges if actual weight exceeds booked weight |
| Platform Fee | Platform usage charges (if applicable) |
Important: How Charges Are Allocated
Q: Why does my RTO charge appear in a different month's invoice?
A: Charges appear in the invoice for the month when the event happened, not when the order was placed.
Example:
- You booked a shipment in January - Forward charge in January invoice
- It became RTO in February - RTO charge in February invoice
This is normal and ensures your invoices accurately reflect each month's activity.
3. Understanding Your Charges
Q: What are the different types of charges?
A:
| Charge | When It Applies |
|---|---|
| Forward Shipping | When your shipment is delivered |
| RTO Shipping | When a shipment is returned to you |
| COD Handling | For cash-on-delivery shipments |
| Weight Difference | If actual weight is higher than declared |
| WhatsApp Messages | Per message successfully sent |
| AI Calls | Per minute of call duration |
| Early COD Fee | If you opt for faster COD settlement |
Q: Which charges include GST?
A:
| Charge | GST |
|---|---|
| Shipping (Forward & RTO) | 18% GST |
| Weight Difference | 18% GST |
| Smart Features (WhatsApp, AI) | 18% GST |
| Early COD | 18% GST |
| Platform Fee | 18% GST |
4. When Charges Are Applied
Q: When are charges deducted from my account?
A:
| Charge Type | When Applied |
|---|---|
| Forward shipping | When shipment is delivered |
| COD handling | When COD shipment is delivered |
| Smart Features | When message is sent / call is completed |
| Weight difference | When carrier reports the discrepancy |
| RTO shipping | 72 hours after RTO (see below) |
Why RTO Charges Are Delayed by 72 Hours
Q: Why don't I see RTO charges immediately?
A: We wait 72 hours before applying RTO charges because:
- Sometimes carriers mark shipments as RTO by mistake
- This buffer gives time for corrections
- If the RTO is reversed within 72 hours, you won't be charged
This protects you from incorrect charges!
Q: When am I charged for WhatsApp messages?
A: You're only charged for messages that are successfully sent. Failed messages are not charged.
5. Wallet & Payments
Q: How do I add money to my wallet?
A: Go to Payments - Wallet and choose: Click on + (add fund)
| Payment Method | Processing Time |
|---|---|
| Online (Razorpay/Cashfree) | Instant |
| NEFT/Bank Transfer | 1-2 business days |
| Credit Note | Instant (if available) |
Q: What happens if my balance runs low?
A:
| Your Billing Mode | What Happens |
|---|---|
| Prepaid | Cannot ship if balance is zero or negative |
| Postpaid | Can ship until credit limit is used up |
| COD Offset | Can ship until credit limit is used up |
Tip: Set up low-balance alerts in your dashboard to avoid shipping interruptions!
Q: Can overdue invoices affect my shipping?
A: Yes. If you have unpaid invoices over Rs. 100 past their due date, shipping is paused until payment is made.
6. COD Settlements
Q: How do I receive my COD money?
A:
- Your COD shipment is delivered
- We collect the cash from the carrier
- On your settlement date, we transfer the amount to your bank
- Any deductions (TDS, outstanding invoices) are applied first
Q: What can be deducted from my COD settlement?
A:
| Deduction | Description |
|---|---|
| Outstanding invoices | Unpaid shipping charges |
| TDS | Tax deducted at source (if applicable) |
| Chargebacks | Customer disputes |
| Early COD fee | If you opted for faster settlement |
Q: What is Early COD?
A: Want your COD money faster? Early COD settles your collections before the standard cycle for a small percentage fee.
7. GST Setup
Q: How do I add my GSTIN?
A: Go to Settings - GST and add your GSTIN. Make sure:
- The GSTIN format is correct
- The state code (first 2 digits) matches your registered state
- Your billing address matches the GSTIN state
Q: I have GSTINs in multiple states. Can I get separate invoices?
A: Yes! With State-Based Billing, you can:
- Register GSTINs for each state
- Get separate invoices per state
- Comply with multi-state GST requirements
Contact your account manager to enable this.
8. Common Questions
Q: My invoice amount seems wrong. What should I check?
A:
- RTO timing - RTO charges appear when RTO happens, not when order was placed
- Credit notes - Check if any credits were applied
- Weight differences - Review any weight discrepancy charges
- Still confused? - Contact support with your invoice number
Q: Why can't I ship even though I have balance?
A: This usually happens because:
- You have overdue invoices over Rs. 100
- Your credit limit is exhausted (for postpaid)
- Your account needs verification
Contact support to resolve this quickly.
Q: I was charged for a cancelled shipment. Is that correct?
A:
- Cancelled before pickup - No charge
- Cancelled after pickup - Forward charge applies (carrier already picked it up)
- Returned (RTO) - RTO charge applies after 72 hours
If you believe a charge is incorrect, contact support with the AWB number.
Q: How do I download my invoices?
A: Go to Payments - Invoices to view and download all your invoices as PDF.
Quick Reference
Billing Modes at a Glance
| Prepaid | Postpaid | COD Offset | |
|---|---|---|---|
| Pay before shipping | Yes | No | No |
| Credit limit | No | Yes | Yes |
| COD pays invoices automatically | No | No | Yes |
| Best for | Getting started | Established sellers | High COD volume |
When Are Charges Applied?
| Charge | Timing |
|---|---|
| Forward shipping | On delivery |
| RTO shipping | 72 hours after RTO |
| COD handling | On delivery |
| On successful send | |
| AI Calls | On call completion |
| Weight difference | When reported by carrier |
Need Help?
- Email: support@velocity.in
- Live Chat: Click the chat icon in your dashboard
- Account Manager: For billing-specific queries
We're here to help!