Lob Credits
What are Lob Credits?
Lob Credits have a 1:1 USD value and can be used for print and mail usage and related taxes.
Fund your Lob Credits as needed (or automate the process) to ensure you have sufficient funds prior to sending mail.
Have visibility and control over your Lob Credits balance in the Lob dashboard.
We are committed to optimizing your direct mail experience and serving you within the most ideal framework. With Lob Credits, you’ll have full control over your expenses, can plan and budget more effectively, and can benefit from greater financial predictability.
The following is an overview we encourage you to review with your Accounts Payable and Finance departments to understand how to fund your mail sends with Lob Credits.
How do I fund my Lob Credits?
A customer will fund their Lob Credits differently depending on what payment process/method they prefer, but they can do it ad-hoc, or take advantage of available automation to support ongoing funding. Select the situation that applies to you to learn more.
For contracted customers, the Lob dashboard defaults to the method outlined in your payment terms. To update, please reach out to your Account Manager.
How soon will I be able to use my Lob Credits?
You must have sufficient Lob Credits to send mail; therefore, it is essential to understand the process and timing of funding your Lob Credits.
Lob Credits will be available when funds are fully settled in Lob Bank accounts; you will receive an email notification when this occurs and Lob Credits are available for use. Lob will continue to accept multiple forms of payment methods; reference Lob Payment Methods for more information on this and funds availability.
For credit card, Lob Credits will typically be available immediately upon successful charge.
For all other payment methods, timing will depend on your Accounts Payable processes, as well as payment method and funds availability.
Sample timing for Lob Credits availability for invoice-on-demand:
The timing of adding Lob Credits is dependent on net terms set by the customer and your internal approval processes.
For example, if your Accounts Payable department has net 0 terms, you will want to create a Lob Credits invoice-on-demand at least a week before you need to send mail.
Customer generates Lob Credits invoice-on-demand; invoice is sent to customer’s Accounts Payable department | Day 0 |
Customer's net terms and AP processing time | +1 days |
Bank processing time to settle funds | +3-5 business days |
Total | ~6 days from the date of request |
Please coordinate between the individual who is initiating the request for replenishment and Accounts Payable to ensure there is proper lead time for any internal approvals and payment initiation to ensure there are sufficient funds in your Lob Credits accounts prior to sending mail.
To ensure sufficient funds at the time of send, you can automate adding Lob Credits:
If you have a payment method on file, set up Auto Pay
If you do not have a payment method on file, set up Auto Invoice
Managing Lob Credits
In the dashboard, under Billing there is a tab called Lob Credits; from here you can view and manage your Lob Credits:
View your Lob Credits balance
Add Lob Credits
Manage automated schedules (click the small arrow in the upper left of auto schedule information block)
Detail tabs: Activity & Statements
Lob Credits Activity
On the Lob Credits landing page, click on Activity to view Pending and finalized, or Posted, Lob Credits activity such as usage drawdowns, Lob Credits added, and print & mail adjustments.
Lob Credits Statements
Because you are pre-funding your mail sends, you will receive a monthly statement. Lob Credits monthly statement will include beginning balances, usage, replenishments, credits/adjustments, sales tax, and ending balances.
A monthly statement will be sent to the Accounts Payable email accounts we have on file. If you would like to edit this, see Billing > Billing Preferences in the dashboard.
Additionally, Lob Credits statements will be available in the Lob dashboard, under Billing > Lob Credits > Statements
User permissions for Lob Credits
Admin: Can create and edit payment methods, add lob credits, create invoices, update Billing preferences
Read/Write: Can add lob credits, create invoices
Read: Can see Lob Credits balance
Invoices
All invoices and their statuses will still be available under the Billing > Invoices tab.
Because you are pre-funding your mail sends, Lob will no longer be issuing invoices for your print & mail usage. You will, however, receive a monthly statement.
Upon conversion to Lob Credits, you may receive TWO final invoices: One for usage during the month prior to your transition date, and one for any mail that was created before conversion but sent after conversion.
If you create invoices-on-demand to fund your Lob Credits, these will be visible in your Lob dashboard.
Platform subscription payments, Address Verification services, Premium Support, Professional Services, Lob Audiences, and any related taxes, will all be invoiced as usual per your customer agreement/order form.
Will I be notified when I run out of Lob Credits?
Yes! Regardless of how you send direct mail with Lob, all users will be notified when your Lob Credit balance reaches zero via email and in the dashboard.
Additionally,
Print & Mail API: You will receive a 200 OK API response even if Lob Credits balance reaches zero. After 5/1, if Lob Credits balance is below zero, mailpieces will be placed into “Funding Hold.”
Campaigns API: You will receive a 200 OK API response even if their Lob Credits balance reaches zero. After 5/1, you will receive a 422 error response if you do not have enough Lob Credits. Mailpieces will be placed into “Funding Hold.”
Campaigns tool: You will be presented with an estimated cost of your Campaign and can place the order. Beginning 5/1:
A pop-up will be presented if you do not have sufficient Lob Credits
You will be directed to Add Funds & Place Order.
You will be able to add funds almost immediately (with a credit card on file) OR be directed to Billing to fund your Lob Credits.
In either case, your Campaign will be saved as a Draft
Who will get Lob Credits notifications?
Under Billing > Preferences, Admin users can indicate which Accounts Payable emails receive Lob Credits notifications (Lob Credit availability, zero balance, etc.).
You can also opt-in to receive an email notification if your Lob Credits dip below a certain threshold (that you determine).
To ensure sufficient funds at the time of send, you can automate adding Lob Credits:
If you have a payment method on file, set up Auto Pay
If you do not have a payment method on file, set up Auto Invoice
Funding Hold
If you do not have enough Lob Credits to send mail, i.e., when Lob estimates there are insufficient funds to send mailpieces, they will go into Funding Hold status. Mailpieces will still be created, but not sent.
You can view the total dollar amount of mailpieces in Funding Hold on the Lob Credits home screen.
Once Lob receives payment, we will re-evaluate all mailpieces in Funding Hold and release the paid mailpieces to a printer. Mailpieces will be released first in, first out (FIFO) based on Date Created.
If your payment does not cover all mailpieces in Funding Hold, those that are not paid will re-enter Funding Hold.
Canceling mailpieces in Funding Hold
This functionality is on our roadmap; if you need to cancel mailpieces in Funding Hold, please contact support@lob.com.
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