Immediate Payment | Deposit & Balance

Authorization Payment

Funds authorized and held at the start of the transaction and is charged only upon delivery confirmation. The carrier knows payment is secured. The broker retains assurance that payment follows performance.

Use This Workflow
Security with Flexibility

The Best of Both Worlds for Established Relationships

Authorization Payment balances security with flexibility, directly addressing the structural tension that defines European B2B payments.

Buyers seek extended terms to manage their own working capital. Suppliers need faster settlement to maintain operational liquidity. Authorization Payment provides a mechanism that satisfies both requirements without requiring full prepayment on either side.

Carrier Gets

Guaranteed funds secured before shipment begins. No post-delivery uncertainty.

Broker Gets

Payment follows performance. No prepayment required before delivery is confirmed.

Authorization payment flow diagram

When to Use Authorization Payment

Choose this workflow when trust exists but financial protection is still required.

Established Relationships

You have prior history with the counterparty but still require a financial safety net. Trust is established, but risk is not eliminated.

Moderate Shipment Values

The shipment value doesn't justify full prepayment but still warrants financial protection before the carrier commits assets.

Balanced Commercial Approach

Both parties seek a mutually fair arrangement. The carrier is protected; the broker is not required to pay before delivery.

High-Frequency Operations

Regular partner with consistent volumes. Authorization workflow reduces friction while maintaining the financial controls that protect both sides.

How Authorization Payment Works

A documented, enforceable chain of events that protects both parties.

  • Create the payment request

    Specify Authorization Payment as the workflow. Include all shipment details, amounts, and both parties' information.

  • Send by email to your customer

    Secure, professional, documented delivery to the correct recipient.

  • Customer authorizes, funds held

    Payment is authorized and funds are ring-fenced. The money is committed but not yet transferred.

  • You receive confirmation, shipment proceeds

    Confirmation that funds are secured. You operate with the knowledge that payment cannot be reversed unilaterally.

  • Delivery confirmed, funds released

    Upon delivery confirmation, the authorized amount is captured and transferred to your account.

  • Disputes hold the authorization

    If delivery is disputed, the hold remains until resolution. Documentation provides a clear record for both parties.

Dutch carrier Belgian forwarder scenario
Real Scenario

Regular Trading Partner,
High-Frequency Operations

A Dutch carrier has worked with a Belgian freight forwarder for several months. Volumes are consistent and the relationship is positive. However, the forwarder's standard payment terms are 45 days from invoice, creating persistent cash flow pressure for the carrier.

The carrier proposes shifting to Authorization Payment through CargoPay. For each load, the forwarder authorizes payment before pickup.

Carrier: Eliminates 45-day waiting period. Operates with certainty.

Forwarder: Maintains working capital flexibility. Pays on performance.

The European Context

While SEPA enables cross-border transfers to move as quickly as domestic ones, the processes surrounding those transfers, reconciliation, supplier data management, and cash application, remain manual and time-consuming.

Authorization Payment through CargoPay automates these processes, reducing administrative overhead while providing payment certainty across all EU member states.

Balance Security with Flexibility

Register, verify, and start offering your trading partners a payment structure that works for both sides.

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