Dynamic Discounting

Dynamic Discounting is a feature that allows merchants to offer a discount in exchange for earlier payments.

There are 2 types of Dynamic Discounting:

  • Linear 
  • Step

Linear Dynamic Discounting


Step Dynamic Discounting


Setting up Dynamic Discounting

1. You will find a new tab under settings inside the Paystand Dashboard.


2. The first step is to create a Dynamic Discounting plan in the Paystand Dashboard. This is done by clicking on Create New DD Plan button and filling in the requirements based on what you want.

  • Chose a plan name
  • Select de default net terms.
  • If you choose a Step Dynamic discounting, you can set up to 3 steps with specific discounts.
  • If you choose a Linear Dynamic discounting, you need to choose a maximum discount that will be decreasing according to the net terms selected.
  • This feature can be enabled/disabled for credit cards.


How to apply Dynamic Discounting

1. Once the plan is created, we need to create a billing portal to assign the plan to a payer. Go to Integration > Billing portal > Create Configuration


2. Fill the billing portal form with the desired checkout configurations, switch the toggle to enable Dynamic Discounting and choose the DD plan you want to apply.


Once all the configurations are set, click on Create Preset button on the bottom.

3. Now, a preset URL key has been created and the next step is to add it to an email template in Netsuite. 

This is done by going into Netsuite and adding a custom preset at the end of the Pay Now link embedded in the email template.


Example of email template in netsuite with dynamic discounting preset key:


GL Impact

After the payment is made by the payer, the invoice status will go from Open to Paid in Full.

A Discount Item line will be added to the Summary of the Invoice with the total amount that was discounted.

Let’s say a payer paid a $1,000 dollar invoice with a 1% dynamic discounting applied.

GL Impact

AR = Debit $1,000

Sales = Credit $1,000

Other Income = Debit $10




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