Payment Terms as Legal Clauses in Terms & Conditions

Clauses for Payment Terms
Disclaimer: Legal information is not legal advice

Payment terms in your Terms and Conditions agreement can help to
protect your business as well as keep your customers informed of
your expectations when it comes to payments.

If your business accepts payments from users through your website
and/or mobile app, you can include specific clauses in your Terms and
Conditions agreement or other binding legal agreement
(such as User Agreement (1)) that discuss the payment terms.
(1) Link to https://termsfeed.com/blog/examples-user-agreements/

Payment terms for SaaS apps

If you have a SaaS apps that allows customers to purchase
subscription plans or pay a regular fee at regular intervals (such as a
monthly recurring bill), you'll may want to consider adding clauses in
your legal agreements that discuss the following:
- Reserving your right to suspend a customer’s service or cancel
the customer's account, and what will trigger you to do so,
- How renewals will be done
- How often a customer will be billed for the service,
- If any refunds are provided for canceled subscriptions/contracts
or other circumstances,
- Reserving your right to change prices of your service at any time

Examples of payment terms clauses

SalesForce (2) includes its payment terms within its Master
Subscription Agreement (3) (MSA). This MSA is the binding agreement
between subscribers to the services of SalesForce, and SalesForce.
A Refund Policy (4) is discussed in Salesforce's agreement, and users
are informed that they cannot decrease their quantity purchased during
the relevant subscription terms.
This is important information for users to have, and for SalesForce to
insert in the agreement.
(2) Link to http://www.salesforce.com/
(3) Link to http://www.salesforce.com/assets/pdf/misc/salesforce_MSA.pdf
(4) Link to https://termsfeed.com/blog/sample-return-policy-ecommerce-stores/

Kissmetrics’ (5) Terms of Use (6) includes a section titled "Fees" to
discuss payments.
Additional sections in the agreement go into more detail about each
aspect of an account, including billing, refunds, acceptable forms o
f payment, how to change your subscription, and how to cancel your
account.
Kissmetrics reserves the right to change fees for its service at any
time. This is added as a clause in their agreement.
(5) Link to https://www.kissmetrics.com/
(6) Link to https://www.kissmetrics.com/terms/

Slack (7) has created a Billing FAQ (8) where questions regarding
payments, payment methods, non-payment, and refunds are answered.
While information on payments from customers is included within the
Slack Terms of Service (9), the Billing FAQ really helps clarify common
questions from customers, such as how to update credit card
information, how invoicing works, and how refunds work.
(7) Link to https://slack.com/
(8) Link to https://get.slack.help/hc/en-us/articles/201723133-Billing-FAQ
(9) Link to https://slack.com/terms-of-service

Clauses for one-time only payments

Regular, non-SaaS businesses or mobile apps allow customers to
make purchases on a one-time basis. This could be anything from
purchasing a pair of shoes, making a hotel reservation, or purchasing
a mobile app.
By nature of the difference in business types of a SaaS business
versus a non-SaaS business, the clauses for payment terms found in
the legal agreements for these one-time purchases businesses differ.

Apple (10) includes one main Terms and Conditions (11)
agreement that covers a number of its services, including
the iTunes Store, Mac App Store, App Store for Apple TV, etc.
The "Terms of Sale" section applies to “all products you pur-
chase through the Services.”
This simple, overarching payment terms clause works well
for a company like Apple that has a number of ways for
customers to purchase electronic media such as songs,
movies, and mobile apps.
(10) Link to http://www.apple.com/
(11) Link to http://www.apple.com/legal/internet-services/itunes/us/terms.html

Teleadapt (12) has a fully separate Sales Terms & Conditions (13),
complete with definitions of key terms used, limitations of liabilities,
and other thorough information regarding sales and purchases.
Sections in its "Sales Terms & Conditions" include "Price", "Payment",
"Delivery", "Buyer’s Default", and others with clauses regarding
payments that work to describe the expectations and obligations
of both the buyers and sellers.
(12) Link to http://www.teleadapt.com/
(13) Link to http://www.teleadapt.com/sales-terms-conditions/20

While the required clauses for payment terms found in the Terms and
Conditions of a SaaS app versus the Terms and Conditions of a one-time
purchase type of business differ, both should aim to describe to
customers the following information:
- What customers are able to purchase,
- How customers are able to make purchases
- If refunds/returns are possible,
- What happens if a customer is supposed to pay for something and
doesn’t,
- Any other information that customers would need or want to know in
order to be fully clear on your payment terms.

Payment Terms as Legal Clauses in Terms & Conditions

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