Startups Stack Exchange Archive

How to allow invoicing between service provider and the customer?

We’re developing a service application. After delivering the service, our service provider will have to generate the invoice and collect the amount, a copy of which will be sent to the customer. We get a percentage of the invoice amount as commission.

According to our business strategy, sometimes the customer may need to pay the cash and some times the service provider.

As our service providers would be less learned people, we also want to make it flexible for the service providers so they are able to update the invoice. Of course the invoice history is saved and visible to the service provider.

Now the problem:

  1. It may be possible for the service provider to update the invoice and reduce the total amount so that he needs to pay less commission.
  2. We could prevent this problem by asking the customer to accept the invoice. When he does it, we could freeze the invoice. But again, why would the customer really bother to do it when he has payed the amount?

Any thoughts here?

Answer 8548

Portugal is said to have a very low fraud rate because every month the government organizes a raffle. They draw some luxury cars to be won by the citizens. To participate they have to show invoices from the previous month. This way they combat black economy by motivating people to ask for invoices when they normally wouldn't. Sounds like an urban legend, but apparently it's not.

So here is one idea:

  1. Have your service providers sign a clause where they can be kicked from service and/or have to compensate you if they continuously do this.
  2. Have them deliver a flyer, asking customers to connect to your site and enter their invoice number and paid amount, or to share their invoice through whatsapp... In exchange give free pizza/services to some lucky participants.

You could use this data to discover dodgy providers, but the plan is that the fact that they know they are being actively monitored should prevent the misconduct altogether.

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