My guess is that those customers want to set up an account to be invoiced by you. This means they would probably not pay with a credit card, but instead by a check. You send them the invoice, their accounting department sends out a check.
This is how most larger companies handle their accounts payable. They don't pay with credit cards, but by check. One downside to this is that your payments will often be much slower than by credit cards. Usually, the quickest you'll be paid by check is 30 days. Many companies hold on to their money for 60 or even 90 days before paying vendors.
This can be a tough transition for some small businesses, because your costs are going out, but payment can be slow coming back.
Hope that helps,
Thanks for the pointers, Barky Dog! I hope you were as enlightened about it as I was, pmtesting! Do they also set up an account so you, the vendor actually does the bookkeeping for them ? Your invoice goes out once a month or so which lets them keep tabs on spending in bulk ?
Account for direct cash or cheque
"On Account" means they would like you to bill them.
How you bill them and the way you get your money is entirely different. I operate an accounting firm and everything is done on account. Trust me when I say, there are days when I stare at my AR and wish it would disappear faster =)
But on the bright side, I switched my customers to "automatic credit". Which means, I send their charges through an ecommerce vendor and the funds are automatically withdrawn from their account on a certain date and time. It's not a fixed amount as I have to fill them in according to services and amount per client.
It's handy because after awhile, clients expect the charges. It is just as efficient as a credit card processor and many credit card companies offer this service. The downside is, if the client doesn't have the funds ready and it ends up bouncing (just like a check). You will get hit with service charges and so on.
Normally, I only recommend extending "on account" to clients that have good credits and because I review their financials, I know if they can afford it or not.
I hope this helps!