What does Due on Receipt mean on an invoice?

Due on Receipt (sometimes written as 'Due Upon Receipt') means the client is expected to pay as soon as they receive the invoice — typically within 24 to 48 hours. It is the fastest standard payment term in professional invoicing, outpacing Net 7, Net 15, and Net 30 by days or weeks. It signals to the client that you expect prompt payment without a formal multi-day window.

Is Due on Receipt legally enforceable?

Yes, as long as the term was disclosed in your contract and/or on the invoice before the work was delivered. 'Due on Receipt' is a recognized payment term in U.S. commercial law. The challenge is that it does not specify an exact due date (unlike 'Net 7' which implies a 7-day window), so late fees may be harder to enforce unless you clarify in your contract what 'receipt' means — typically the invoice send date.

When should I use Due on Receipt?

Use Due on Receipt for: small transactions under $500, one-off deliverables where you need immediate payment, clients with a proven track record of paying quickly, rush or emergency work where you took on the job quickly, and digital-only deliverables where payment via Stripe or PayPal can be completed in minutes. Avoid it for large invoices with corporate clients who have multi-step AP processes — they simply cannot accommodate it, and insisting creates friction.

How is Due on Receipt different from Net 7?

Both are short payment terms, but Net 7 provides a defined 7-day window that is unambiguous and easier to enforce. Due on Receipt implies immediate payment but does not specify an exact deadline, which can create ambiguity about when a late fee kicks in. For most practical purposes, Net 7 is a cleaner term — it communicates urgency while giving the client a concrete deadline. Due on Receipt is slightly more aggressive and works best for very small amounts or digital transactions where one-click payment is possible.

What if a client says their company policy requires Net 30?

This is legitimate pushback from corporate clients — their AP process genuinely cannot accommodate same-day payment. Rather than insisting on Due on Receipt, negotiate to Net 7 or Net 14 as a middle ground, or require a 50% deposit upfront so only the remaining balance is on their Net 30 terms. For very small transactions, you can also require payment before delivering the final files — which effectively achieves the same result as Due on Receipt.

How do I follow up on a Due on Receipt invoice that hasn't been paid?

Send a brief follow-up 48–72 hours after the invoice if payment has not arrived. Keep it short and professional: 'Just checking in on Invoice INV-041 ($350) — our payment terms are Due on Receipt, and I haven't seen the payment come through yet. Here's the payment link for your convenience.' If 7 days pass without payment, apply your late fee policy and send a firmer overdue notice.

Payments

What is Due on Receipt?

Due on Receipt means payment is expected immediately upon receiving an invoice — typically within 24–48 hours. Learn when to use this payment term, how to write it on an invoice, and how to handle pushback from clients.

What Does Due on Receipt Mean?

Due on Receipt (also written as "Due Upon Receipt" or abbreviated "DOR") is a payment term specifying that the client should pay the invoice immediately upon receiving it — typically within 24 to 48 hours. It is the fastest standard payment expectation in professional invoicing, ahead of Net 7, Net 15, and Net 30. Unlike Net terms, which build in a defined number of days before payment is due, Due on Receipt sets no formal buffer period. Payment is expected as soon as the invoice is in the client's hands. For freelancers and contractors, Due on Receipt works best for: - Small, discrete transactions (under $500–$1,000) - One-off deliverables where work is complete - Digital products where the client receives immediate access - Trusted repeat clients with consistent on-time payment history - Rush or emergency work where you expedited your schedule

Due on Receipt vs. Other Payment Terms

| Term | Payment Window | Cash Flow | Best For | |---|---|---|---| | Due on Receipt | 0–48 hours | ⭐⭐⭐⭐⭐ | Small amounts, trusted clients | | Net 7 | 7 days | ⭐⭐⭐⭐ | Most freelance work | | Net 15 | 15 days | ⭐⭐⭐ | Mid-size business clients | | Net 30 | 30 days | ⭐⭐ | Corporate clients | | Net 60 | 60 days | ⭐ | Large enterprise | The practical difference between Due on Receipt and Net 7 is about a week of cash flow — meaningful for small transactions, but not a reason to damage a client relationship by insisting on immediate payment when they have a standard 7-day process.

How to Write Due on Receipt on an Invoice

On your invoice, include: `` Payment Terms: Due on Receipt Due Date: [Invoice date] (upon receipt) Late Fee: 1.5% per month on balances unpaid after 48 hours Pay Now: [Your Stripe or PayPal payment link] `` The payment link is essential. A client who receives a Due on Receipt invoice with a direct Stripe link can pay in under 60 seconds. Remove that friction and most clients pay immediately. Always send the invoice the same day you deliver the work — if you wait 3 days to send it, "Due on Receipt" becomes ambiguous about when the 48-hour window started.

When Due on Receipt Works Best

Small transactions. A $200 invoice should not sit in Net 30 limbo for a month. Due on Receipt is proportionate for small, fast projects. Digital deliverables. When you send a Figma file, a final video edit, or a completed article, the client has received value immediately. Due on Receipt matches the delivery speed. Post-payment-delay clients. If a client has previously paid late, switching to Due on Receipt (or even payment before delivery) recalibrates the relationship. One-time clients. With no established relationship, Due on Receipt or a 50% deposit + 50% on delivery structure protects you from non-payment risk. Rush work. If a client needed something done in 48 hours, they can pay in 48 hours. Rush work on Net 30 terms is rarely worth it.

When Not to Use Due on Receipt

Large corporate clients typically have AP processes that run on weekly batch payment cycles, require manager approval, and have pre-set Net 30 terms with all vendors. Insisting on Due on Receipt with a Fortune 500 client creates unnecessary friction — their AP system may not even be able to process a payment within 48 hours. Large invoice amounts. A $15,000 invoice with Due on Receipt terms may seem aggressive, even if the work was delivered in full. Net 7 or Net 14 is more appropriate for large invoices. Ongoing retainer relationships. A monthly retainer works better on a recurring fixed schedule (e.g., invoice on the 25th, due the 1st) than as a series of Due on Receipt invoices.

Handling Client Pushback

"Our company requires Net 30." For corporate clients, this is a legitimate policy you cannot override. Offer Net 7 or Net 14 as an accommodation for a small vendor exception, or require 50% upfront to reduce your exposure. "I'll pay you at the end of the month when I run payroll." Acknowledge the constraint but hold your position: "I completely understand your cash flow timing — our terms are Due on Receipt. If it's easier, I can set up a Stripe payment link and you can schedule the payment for a specific date within the next 48 hours." Small business clients are often more flexible than they initially appear. "The invoice wasn't approved yet." Send the invoice only after approval, then use Due on Receipt. Alternatively, add an approval step before delivery: "Once you confirm you're happy with the deliverable, I'll send the final invoice." "I didn't receive the invoice." Resend and confirm receipt directly: "I've resent Invoice INV-041 — can you confirm it arrived? If Stripe works better for you, here's a direct payment link."

Due on Receipt and Late Fees

The challenge with Due on Receipt and late payment fees is defining when a fee starts accruing. "48 hours after receipt" is imprecise — when exactly did they receive it? To keep enforcement clean, specify in your contract: "Invoices due on receipt are considered overdue 48 hours after the invoice send date. A finance charge of 1.5% per month applies to invoices unpaid after 48 hours." Using the invoice send date as the starting point (not delivery confirmation) is more enforceable because it is objectively timestamped.

A Real Due on Receipt Example

A freelance copywriter delivers 3 product descriptions to an e-commerce founder. The work is delivered and the invoice sent simultaneously at 9 AM: Invoice INV-2026-041 - Amount: $450 - Terms: Due on Receipt - Payment link: [Stripe link] - Late fee: 1.5% per month after 48 hours By 11 AM the same day, the founder clicks the Stripe link and pays. The copywriter receives the funds in their Stripe account within minutes. Total time from work delivered to payment received: 2 hours.

Use Eonebill to Send Due on Receipt Invoices

Eonebill lets you configure Due on Receipt as your default payment term. Every invoice you create automatically includes your Stripe payment link — making one-click payment the path of least resistance for every client. For clients on longer terms, you can override the default on any individual invoice. Related: Net 7 Explained · Payment Terms Guide · How to Get Paid Faster · Invoice Templates