By taking advantage of automated electronic payments, you save time and money.

Our commitment to you:
Because we value your privacy and respect the trust you’ve placed in us, your bank account will not be debited for any other billing or customer numbers than what you have specified on your authorization form. In addition, the individuals authorized to process your automatic payment setup must obtain special clearances, operate under strict business controls and undergo regular management reviews.

Most importantly, nobody will be able to access your bank account. So if an invoice is issued and does not get designated for automated payment, even you will not be able to authorize it to be direct debited.

 

Electronic payment process and methods

You initiate automatic payment authorization by filling out and signing the Direct Debit authorization form (PDF, 50KB). Mail this completed authorization form, along with a voided check, to your IBM Customer Support Representative (CSR) for processing. The form specifies the types of invoices to be paid using automated payment, and defines the agreement between you and IBM. It also documents the payment timing, normally 15 days after the invoice date. Remember, as long as the timing is no more than 15 days from the invoice date, you'll receive a 0.25% discount off the invoice price.

Next, we’ll record your bank routing and account numbers in a highly secure and confidential database along with your customer number(s), the types of billing you've specified and the payment timing. Your authorization form and voided check are kept in a securely locked file, and only a very few authorized individuals can access this information.

You will receive invoices according to your chosen billing type and the contracts governing the invoices. For example, if you' have specified contract services, and you have a supportline contract with quarterly billing, you will receive an invoice early in each calendar quarter. Invoices will show the particular products and services, billing period and other pertinent details as well as the date the automatic transfer will occur.

Once you receive your invoice, you review it for accuracy. If everything is correct, you do nothing and the payment will be processed. However, if you notice inaccuracies, or need the debit amount changed or stopped altogether, you can contact us using the phone number in the invoice’s upper left corner or email a request using the email address that appears on your invoice. As long as at least three workdays remain before the automatic payment date, we can make the change before the payment occurs.

On the payment due date, our accounts receivable system receives your bank routing and account information from the confidential database and electronically transfers it to our bank. Our bank then electronically communicates with your bank to transfer the payment, which clears the invoice from your account. If you've qualified for the discount, the amount of the payment is automatically adjusted.

If post-payment review finds the invoice amount or billing were inaccurate, you can contact us. Within the first ten days after the payment, we can electronically transfer any excess charges back to your account. After that, we can issue you a refund by check.

If you need to modify an automatic payment, including adjusting contracts, customer numbers or bank routing and account information, contact us for an amendment form. We will process the form and implement the changes as quickly as possible.

If you need to end your automatic payment plan, we will need written notification. Although we will try to stop on the date you wish, the automated nature of the process may require more time. Also, if you've only been paying automatically for a short time, and have no previous credit history with us, we may require a cash deposit or credit card number to continue contracted billing.

Occasionally, the automatic payment process fails and your payment does not transfer. If this occurs, your assigned IBM CSR will contact you to make other arrangements for payment. Please note that IBM charges a late payment fee of 2% for payments not received by the 30th day from the invoice date, and no discount is applied if the automatic payment transfer fails.

Electronic payment methods:
IBM supports several electronic payment methods including direct debit, credit card and purchase card (P cards). If desired, you can vary the payment method by invoice type. And if the following details don’t adequately address your questions, you can contact your Accounts Receivable Representative for answers to your specific questions.

If you would like to receive electronic invoices instead of paper invoices, we can transmit them to you electronically using electronic data interchange (EDI). This can eliminate mailing delays, reduce paper-handling costs and save time by feeding directly into your inventory management and accounts payable systems. IBM charges no fee for electronic invoicing.

If you are interested in electronic invoicing, find more information here or contact us.

 

Electronic funds transfers

In addition to the options for recurring payments above, you can gain many of the same electronic payment benefits for non-recurring payments. IBM can receive customer initiated electronic funds transfers (EFT) including Automated Clearing House (ACH) payments and wire transfers (FEDWIRE). Unlike the recurring payments, these EFTs require you to initiate each payment to IBM through your bank rather than IBM drafting the payments on a regular schedule.

You can initiate several types of ACH payments through your bank. Our preferred ACH format is the Corporate Trade Exchange (CTX) that provides both electronic payment and remittance information. We accept other ACH formats and wire transfers, but often you must communicate the remittance information separately to your Accounts Receivable Representative.

If you are interested in using EFTs, please contact your Accounts Receivable Representative.

 

 e-Pay through Invoices On-Line® for IBM

In addition to the options for electronic payments above, you can pay your invoices by credit card our ACH using the web application, Invoices On-Line® for IBM. Viewing and paying your invoices using this method is easy and secure. Find out more.

 

Payment terms

We print invoice payment terms in the heading of each invoice. The overwhelming majority will say, "Payment due upon receipt of invoice - late payment fee may apply."

 

Late payment fees 

If an invoice is subject to late payment fees, it will contain the above header statement. In addition, near the bottom of the invoice we will print the date by which the invoice must be paid to avoid incurring a late payment fee. Most invoices are assessed late payment fees starting 30 days after the invoice date. For maintenance and software license charge quarterly billings, the late payment fee date is the last day of the second month of the quarter.

 

Invoice timing

The timing and frequency of invoices varies with the type of billing as well as with the choices you have made regarding the frequency.

Hardware purchases and one-time software license charges:
We generate invoices every weekday.

Maintenance agreement charges:
For quarterly billing frequency, we generate invoices at the beginning of each calendar quarter (January 1, April 1, July 1, October 1). For one month, six month or one year billing frequency, we generate invoices at the beginning of each month.

Hourly service invoices:
We normally issue these invoices within one week of when the service was performed.

Invoices for recurring software license fees:
We generate normally recurring quarterly invoices at the beginning of each calendar quarter (January 1, April 1, July 1, October 1). For customers who have not yet converted to quarterly billing, we generate invoices for monthly license charges at the beginning of each month.

Invoices for parts:
We generate parts invoices once each week. If you use the toll free number (1-800-388-7080) to order maintenance parts, we usually issue the invoice within 10 days of shipment.

Invoices for consulting and services:
We generate invoices for consulting and services contracts, including business continuity, recovery services and service family offerings, on varying, contract-based schedules. For regularly-scheduled recurring charges, we normally generate invoices at the beginning of the quarter or month to cover the upcoming period. For contracts that bill as services are performed, we will issue invoices weekly or monthly covering services performed over the preceding period.

Invoices for IBM Credit Corporation Financing:
The IBM Credit Corporation generates its invoices a few days before the first of each month, with the invoice date reflecting the first of the month.

 

Modify the reference address, installed-at address or invoice-to address information that appears on your invoices

There are several ways to initiate one of these changes; you can choose the method below that works best for you.


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