Overview
Summary
Chargebee aims to enhance the user experience for merchants reconciling offline payments (bank transfers, checks) specifically in countries like Norway, Sweden, Finland, Denmark, etc. This UI/UX case study focuses on implementing a robust Payment Reference Number system, streamlining the reconciliation process.
Team Members
Kiran Kumar (Designer)
Anshuman Manur (UX Writer)
Aakash Nair (Product Manager)
YEAR
March 2023
Duration
4 Weeks
Role
Product Designer
The Challenge
Problem Statement
When a Chargebee merchant receives an offline payment through bank transfer or check, they rely on the bank statement to track these payments. This is because in Chargebee, unlike card payments, there is no automatic link between offline payments and invoices. The bank statement shows details about payments and customers but lacks information about the specific invoice each payment corresponds to. Connecting payments to the right invoices requires a lot of manual work, taking up time and increasing the risk of errors for the merchant.
Example to understand the problem better:
Assume a customer in Norway has 2 unpaid invoices worth $100 and $200.
The customer chooses to clear these unpaid invoices via Bank Transfer.
He makes multiple payments — $50, $30, $70, $50, and $100, respectively to pay off these invoices.
During reconciliation, the merchant struggles to associate these payments with the right invoices because he does not know which payment relates to which invoice.
Business Goals
Simplify the process of reconciling offline payments by creating a unique Payment Reference Number.
Minimize manual tasks for merchants linking offline payments to invoices.
Guarantee precise payment allocations, elevating the overall merchant experience.
Research & Insights
Product Board
To understand our customers' needs, we reviewed all the insights on our product board. The board gathered feature requests from our current customers, new customers, and those we lost.
By analyzing all the data, we found out about the KID number. The KID number (kundeidentifikasjon) in Norway is an abbreviation for "Customer identification". It is used to associate payments with the right customer and the right invoice. In short, the KID number is a Payment reference number.
The purpose of the KID number is to simplify bank reconciliations when offline payment methods are used.
Additionally, it also ensures that customers are making payments towards the right invoice.
Other countries have their version of KID. For example, in Sweden, it is called the OCR number. In Finland, it is called the Finnish reference number. In Denmark, it is called the FIK / GIK number.
Desk Research
Before moving on to the solution based on the data we had. We did some research to find out how other products are creating the payment reference numbers.
JustOn allows the creation of a KID number for
Every customer (OR)
For every Invoice
Customer ID in JustON consists only of digits and hence they can generate KID numbers from this. However, in Chargebee Customer ID is alphanumeric and it's not possible.
Moment creates KID numbers using their customer and invoice numbers.
Tripletex always uses the Invoice number as part of the PR number in KID, OCR, and FIK.
We've identified two potential solutions based on the insights from JustOn, Moment, and Tripletex:
Use the invoice number as part of the PR number.
Generate a unique number that is not tied to the invoice number.
Solution
Our Approach
We decided to adopt a unique number approach that isn't linked to the invoice details as our preferred solution. This decision is based on its simplicity and alignment with the specific requirements and insights obtained through our research.
To make reconciliation easier we needed something that connects offline payments with invoices.
That's where the PRN comes into place,
The purpose of the PRN number is to simplify bank reconciliations when offline payment methods are used.
Additionally, it also ensures that customers are making payments towards the right invoice.
After the implementation of the Payment Reference number in Offline payments:
PRN is common and this can help connect Invoice with Payments. This helps with easy reconciliation.
Key Aspects
User Flows
We thought about the best and easiest way for users to configure the PR Number, making sure it feels straightforward and logical while also being ready for future growth.
Configure Payment Reference Number
Associate a PRN to a New Payment Instruction
Associate a PRN to an Existing Payment Instruction
Design Explorations
We explored various options to make it easy for users to set up the PR Number.
Final Designs
Manage PRN
Create PRNs based on specific country needs and rules.
Configure Payment Reference Numbers
PRN Format for KID
Editing a PRN
PRN Format of Other Countries
PRN page with Configured numbers
Error & Warning States
Manage Payment Instructions
Associate the PRN's to the respective Payment Instruction
Adding a new payment instruction
Associate a PRN to the Payment Instruction
PRN printed in the Invoices
With its respective payment instructions before payment.
In invoice details after payment.
Invoice Details Page
PRN will be displayed on the respective invoice page to make reconciliation easy.
Updated Designs - September 2023
After successfully launching the initial version of this feature, we expanded its availability to include two more countries (Switzerland & Liechtenstein)
Prototype
Please use the full-screen view to have a better experience :D