What is the difference between On Account and Store Credit payment types?

Both “On Account” and “Store Credit” are defined and treated as “Payment Types” in Tagrain. However, there is a subtle difference between the two. 

“On Account” is used for credit sales wherein the customer is not required to pay anything at the time of sale transaction. This will decrease the amount equivalent to the sale from his credit limit. For example, a customer has $3,000 as a credit limit. If this customer pays “On Account” for a transaction $1,200 bill value, the credit limit balance will be $1,800. 

“Store Credit” is used when performing a sale refund to a customer. Retailers reserve the option to pay cash back to customers and rather issue a credit note to the customer like a gift card with the value equivalent to the refund amount. This practice is to retain the customer so that he can come back and buy something else thereby redeeming the gift card.

You must subscribe to and activate the Customer and Credit Management plugin to be able to set credit limits for your customers and define additional payment types like On Account and Store Credit 

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