Definition
Due on receipt is a payment term meaning the client is expected to pay as soon as they receive the invoice. In practice it signals payment within a day or two. It is common for small jobs, retail-style services, and clients who pay immediately by card or bank transfer.
Also called: Payable on receipt, Due upon receipt
Due on receipt in practice
Due on receipt is the fastest standard term but gives the client no defined deadline, which can make it harder to say precisely when the invoice is "late". Some businesses pair it with a note such as "payment within 3 days".
Frequently Asked Questions
When is a due on receipt invoice overdue?
Technically immediately, but most businesses treat it as overdue after a short grace period of 3 to 7 days. To avoid ambiguity, consider Net 7 instead.