Concept Definition
What is a payment method on an invoice?
A payment method specifies how a buyer will pay an invoice. Common methods include bank transfer (credit transfer), direct debit, cheque, and card payment. The payment method is encoded in e-invoices using the PaymentMeans code list. In UBL and CII, PaymentMeansCode defines the method.
What are common payment means codes?
Peppol BIS Billing 3.0 uses UNCL4461 codes for payment means. Common codes include:
- 10: Cheque
- 30: Credit transfer (bank transfer)
- 42: Payment to bank account
- 48: Bank card
- 49: Direct debit
- 57: Standing agreement
- 58: SEPA credit transfer
- 59: SEPA direct debit
Frequently Asked Questions
- Is payment method mandatory on a VAT invoice?
- Payment method is not a mandatory VAT invoice field under EU VAT Directive Article 226. However, it is required for effective AP automation and is commonly required by buyer procurement systems. Peppol BIS Billing 3.0 treats PaymentMeans as conditional.
- What payment method code is used for SEPA bank transfer?
- SEPA credit transfer uses PaymentMeansCode 58. SEPA direct debit uses code 59. For general bank transfers not specifically SEPA, code 30 (credit transfer) is used. The appropriate code depends on whether the payment is within the SEPA zone.