This article explains the upfront (prepaid) billing procedure on Deel (sometimes called the Advance Fee payment) and how clients can use billing credits to pay eligible Deel fees on the platform.
Please note that Deel billing credits are maintained at the organization level, and a client cannot direct credits to be applied only for a specific entity, team, or product.
In this article:
Upfront (Prepaid) Billing and Deel Billing Credits (DBC)
How Upfront (Prepaid) Billing Works
How Deel Billing Credits (DBC) Are Applied
Product Fees Covered by Billing Credits
Upfront (Prepaid) Billing and Deel Billing Credits (DBC)
Generally speaking, upfront (prepaid) billing is agreeing to pay Deel for all fees at the beginning of a contract and committing to an agreed-upon number of products or contracts over a predetermined duration. Invoices will be generated once the client agrees to sign an order form.
Once a client commits to that order form, Deel will generate at least one Upfront Billing Statement. After the client pays the upfront statement, billing credits will be added to the account.
These credits are used to pay all covered fees, and this will lower the amount that the client must pay.
Deel billing credits become available in the account as soon as the first upfront billing statement is paid and the funds are received by Deel.
How Upfront (Prepaid) Billing Works
Once clients commit to the Order Form, a Prepaid Credit Invoice is generated. After payment of this invoice, Deel Billing Credits (DBC) are automatically applied to eligible Deel service fee invoices.
Clients no longer need to manually select "Apply Prepaid Billing Credits to invoice"—the system will handle this process automatically. If the available credits do not cover the full amount of fees, the client will only need to pay the remaining balance.
How Deel Billing Credits (DBC) Are Applied
Org admins can review the billing credit balance in the Billing & Payments card under Organization Settings.
Step 1: After the client commits to the Order Form, a Prepaid Credit Invoice is generated.
Step 2: During the payment flow, Deel Billing Credits are automatically applied to eligible service fee invoices. Clients can click the edit pencil icon to disable this automation or adjust the amount of credits allocated.
Product Fees Covered by Deel Billing Credits (DBC)
Clients can use Deel billing credits to pay for the following:
- Contractors
- Fixed amount SaaS fees
- % amount SaaS fees
- Deel Premium fee
- Deel COR
- EOR
- EOR fees
- Global Payroll
- US Payroll Fees
- PEO
- Deel HR
- Entity Creation and Maintenance Fees
- Standalone service fees
- Equipment
- Hofy Equipment fee
- Background check
- Deel Engage
- Benefit Contract Fee
- Health Insurance Fees
- Standalone mobility fees
- Legal Consulting Fees
- Legal Equity Fees
- Late Payment Fees
Fees that are included in an EOR worker's invoice are not covered by billing credits. This may include EOR benefits, mobility, and equipment fees.
Please contact us to learn more.
FAQs
[ACCORDION] When are invoices paid, and when are they issued?
The number of invoices clients receive and when, will depend on the length of the contract and the payment term agreed to. They can be paid in installments of annually, semi-annual, quarterly, and monthly.
Example: 1-year agreement, $12,000 Annual Cost
Annual: One invoice of $12,000
Semi-Annual: Two invoices of $6,000 each
Quarterly: Four invoices of $3,000 each
Monthly: Twelve invoices of $1,000 each
Note: The logic outlined in example one applies to recurring fees. One-time implementation and upfront costs will always be included in the first invoice of a specific year.
Invoice Cadence
For contracts created after June 17, 2024:
- The initial invoice is issued immediately after the Order Form contract is signed and is due according to the net terms specified.
- Subsequent invoices will be issued consistently on the 25th of the prior month.
- For example : If the period starts on April 1, then its invoice will be issued on March 25.
For contracts created before June 17, 2024:
- The first invoice is issued as soon as the contract is created.
- Subsequent invoices are issued 10 days before the next contract cycle start date.
[ACCORDION] When do billing credits become available on the client's account?
Deel billing credits become available in the account as soon as the first upfront billing statement is paid and the funds are received by Deel.
This means that billing credits can only be applied after the payment for the first upfront statement has been received and processed.
[ACCORDION] Is an order form legally binding?
Yes, an order form is a legally binding agreement between the customer and Deel.
It outlines commercial terms and the fees the customer is expected to incur, including any discounted pricing, and specifies the amount Deel will bill the customer ("Order Cost") for each year of the order term.
[ACCORDION] Can clients specify which billing credits go toward which worker types?
No. Billing Credits are per Organization, and they're used flexibly for any fees and for any applicable workers within that single organization.
For example, Deel can't specify which credits will apply to EOR, and which go to Global Payroll fees.
[ACCORDION] Why do clients still receive invoices if they prepay?
Even though Deel Billing Credits (DBC) cover eligible fees, invoices are still issued for accurate revenue recognition and client budgeting purposes. These invoices reflect the services used and the application of available billing
[ACCORDION] What happens if a contract ends early?
Prepaid fees are not fully refundable. However, clients may be able to use their Deel Billing Credits toward other services. Please contact Deel support for more details on how unused credits can be applied.
[ACCORDION] Why is the bill in USD?
Deel charges fees in USD, so the fees negotiated in Upfront Billing should be in USD. The Deel Billing Credits (DBC) will be held in USD, and there won’t be any FX fees charged when the credits are used toward fees when the client makes payments.
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