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Glossary: Finance and Payments
Glossary: Finance and Payments

Defining the terms HoneyBook uses for finance and payments.

Updated over a week ago

Cash/check transaction

One of the ways your client can pay you. Since this transaction type is handled outside of Honeybook, processing times can vary and HoneyBook will not assess a transaction fee.


Bank transfer

One of the ways your client can pay you. This transaction type involves your client entering their bank details when checking out. Transaction fees are lower than a payment via credit card, but processing times are higher if your client pays via bank transfer.

Also known as: ACH transfer


Cardholder Entered payment

One of the ways your client can pay you via credit card. This transaction type has your client enter their credit card details when checking out. Transaction fees are higher than bank transfers, but processing times are faster.


Card on File payment

One of the ways your client can pay you via credit card. This transaction type has your client use their saved credit card details when checking out. Transaction fees are higher than bank transfer, but processing times are faster.


Dispute

How your client let’s their bank know that they do not recognize the charge or disagree with it. When your client starts this process, you, their bank, and HoneyBook all come together to figure out if the client should pay the charge. If your client disputes a charge, HoneyBook will reach out to you.

Also known as: chargeback


Dispute fee

If your client files a dispute with their bank, a dispute fee of $10 USD will be assessed alongside the disputed amount being withdrawn from your linked bank account (or withheld from future payments). This fee is assessed by Stripe, HoneyBook’s payment processor.


Fraud

A payment, usually made with a credit card, that the cardholder did not authorize.

Types of fraud can include, but aren’t limited to: overpayments, alternative refunds, card activity fraud, and friendly fraud.


Overpayments (fraud)

Usually appears as a client asking to be billed for additional services that weren’t agreed upon or that you don’t offer, then wire the payment for those additional services to an unrelated bank account.


Alternative refund (fraud)

Usually appears as a client paying more than required, then reaching out to you to have that surplus sent outside of the credit card network. This can usually sound like the client claiming the card was closed, so you should refund the surplus by check or wire transfer.


Card activity fraud

Usually appears as someone using a card to make purchases that isn’t the cardholder. This type of fraud is combated using chargebacks. The bank that issued the card that was used will have final say on whether a transaction was fraudulent or not.


Friendly fraud

Usually appears as a client making a legitimate transaction, then later disputing the charge. This can be on accident or a deliberately fraudulent attempt to get the funds back.


Bank holidays

Days of the year that banks close. These usually will fall on nationally recognized holidays (like President’s Day). Payments will not process on these days, but will process the following business day (Mondays through Fridays).


Autopay

An option your clients can turn on to automatically make payments on the invoices you send them. This is not available for recurring invoices, as those already work by automatically charging your client.


HoneyBook Finance

The suite of features in HoneyBook that covers payment management, bank details, instant deposits, and transfers. The business checking account, debit card, and features available only for account holders is also included in this suite of features.


Cashflow

How money flows in (income) and out (expenses) of your bank account. Keeping this positive is a requirement for your business to be healthy.


Authorized hold

Pending transactions that vendors may place on your bank account, making some funds unavailable while the transaction is pending. This is done to check if you have sufficient funds for the purchase.

Still have questions? Feel free to send us a message by clicking the Question Mark icon on any HoneyBook page. Our team is always happy to help!

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