Sell More, Win More, Grow More: Two Releases Recourse Fallback For Maximum Sales

Our mission at Two is, and always has been, to make selling on net terms as easy as selling on card. That’s why we built Two - The highest credit limits for net term sales using the simplest B2B checkout on the market.

In that time, we’ve also learned a lot about how we can continue improving our B2B solutions for our merchants. Which is why today, we’re delighted to announce a new feature available for our Guest Checkout, Trade Account, Order Creator and Instalments products - Recourse Fallback.

What is Recourse Fallback?

Recourse Fallback is a new feature that allows you to offer the best checkout experience possible. Using Recourse Fallback, your customers can continue placing orders using Two, even if they’ve been rejected for credit or they’ve reached their credit limit. This protects your customer’s purchasing experience while still enabling automated invoicing and upfront payments to you.

For example, let’s say your customer has £50,000 worth of unpaid orders using their entire £50,000 limit provided by Two. Recourse Fallback allows them to continue placing new orders using Two, and you bear the risk in case the customer isn’t able to pay Two back.

Using Recourse Fallback further extends your selling potential, tapping into even more customers you can sell to. The only difference between a Recourse Fallback order and a regular order is that you take on the credit and fraud risk.

How does Recourse Fallback work?

Each merchant is assigned a maximum Recourse Fallback limit by Two for you to access to distribute as you see fit. You decide which of your buyers has access to this feature and what their Recourse Fallback limit should be. We designed this feature to be self-service for total merchant control, available via both the Merchant Portal and API. After all, you know your customers best.

How do I start using Recourse Fallback?

To start using Recourse Fallback, simply get in touch with your Account Manager at Two or via support@two.inc.

Once this has been set up for you, you’ll see a new tab in the Merchant Portal called On Recourse under Customers. This will show you the total Recourse Fallback limit, current Recourse Fallback exposure across all your customers, and remaining Recourse Fallback limit across all customers.

Individual customer Recourse Fallback limits will also show per customer.

Can a buyer still be rejected if they have sufficient recourse limit left?

Yes, in order to protect you, we will still run a check on the most serious “red flags” about the Buyer, for example, if their company is being dissolved or is in severe arrears. We always inform you about the recourse rejection reason, which should happen very rarely, and you can write to us at support@two.inc to challenge it.

A note from the Two team

We recently caught up with Daniel Remenyfy, one of the key players behind this new feature, to hear more about Recourse Fallback and what it means for you and your customers.

What inspired the development of the new Recourse Fallback feature and how do you envision it changing B2B transactions?

“As a member of the Product team here at Two, I often have to make difficult decisions about what problems we solve first for our customers. This wasn’t one of them - there was an overwhelming merchant demand for a feature like this, thanks to the strong relationships they have with their customers.  This means they’re willing to go to great lengths to make sure they can check out using Two, even if the customer’s credit limit is exhausted.

Recourse Fallback makes it possible for our merchants to do exactly that! Our merchants still get paid in advance but also bear the risk. Because of that, we can offer more beneficial pricing on these orders.”

Can you tell us a bit more about how Recourse Fallback works with our API?

“So actually, Recourse Fallback can be used across our whole product portfolio; both inside our Merchant Portal and through our API. This allows full flexibility - our merchants can either decide to manually review their limits and their buyers’ exposure using our Merchant Portal, or they can set up their backend to tweak the rules automatically on the fly. Our API guarantees to give full visibility at any moment in time. We also only offer an order for recourse if it fits within our merchants’ predefined recourse limits.”

From your perspective, what are the most significant benefits that merchants will see with this feature?

The biggest challenge before launching this feature was that our merchants couldn’t get enough of Two! Jokes aside, merchants were often forced to use a secondary and inferior invoicing solution when their buyers had reached their credit limit. As you can imagine, that’s a huge pain point. This feature allows the merchant to trust Two as their end-to-end B2B payment provider, get paid out right away for these orders, and let Two take care of the post-sales journey.

Are there any plans to expand or enhance the Recourse Fallback feature in the future?‍

Sure! Even though Recourse Fallback is designed to maximise sales, we still have multiple layers of protections in place to check for “red flag” behaviour from the buyers before we allow a merchant to take on this type of order. Moving forward, we would like to allow our merchants to challenge these decisions in a structured flow, if they decide to proceed with the order despite our warning.

FAQS

You can manage customer Recourse Fallback credit limits directly from the Merchant Portal. Navigate to the Customers tab, select the Customer you would like to set up on recourse (you also have the option to search for customers using the search bar), and then hit the “on recourse” toggle. You can also update your customers’ recourse limits at any given time, as well as filter for Orders on recourse. Check out this Loom video for more help!

Any of our merchants in the UK and Sweden. The feature is not currently available in Norway.

If you are integrated directly via the API, any GET call will tell you if the order / instalment plan is on recourse or not, even before the order is fulfilled. You can also see it in our Merchant Portal by navigating to the Orders tab, both in the filter options, as well as browsing an individual order’s details.

Yes. We reserve the right to reject orders, even if placed using Recourse Fallback in case we identify any significant red flags (such as a buyer being blacklisted). This, however, should be extremely rare.

No, we currently do not offer a “partial Recourse Fallback feature”, so an order will either be fully on Recourse Fallback, or not at all. This means that your customer either needs to have a sufficient available credit limit, or sufficient available buyer recourse limit at their disposal to place an order. You can however decide to split your order into two on your own side, to maximise the utilisation of your credit limits - but this will mean your buyer will get two invoices.


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Sell More, Win More, Grow More: Two Releases Recourse Fallback For Maximum Sales

Our mission at Two is, and always has been, to make selling on net terms as easy as selling on card. That’s why we built Two - The highest credit limits for net term sales using the simplest B2B checkout on the market.

In that time, we’ve also learned a lot about how we can continue improving our B2B solutions for our merchants. Which is why today, we’re delighted to announce a new feature available for our Guest Checkout, Trade Account, Order Creator and Instalments products - Recourse Fallback.

What is Recourse Fallback?

Recourse Fallback is a new feature that allows you to offer the best checkout experience possible. Using Recourse Fallback, your customers can continue placing orders using Two, even if they’ve been rejected for credit or they’ve reached their credit limit. This protects your customer’s purchasing experience while still enabling automated invoicing and upfront payments to you.

For example, let’s say your customer has £50,000 worth of unpaid orders using their entire £50,000 limit provided by Two. Recourse Fallback allows them to continue placing new orders using Two, and you bear the risk in case the customer isn’t able to pay Two back.

Using Recourse Fallback further extends your selling potential, tapping into even more customers you can sell to. The only difference between a Recourse Fallback order and a regular order is that you take on the credit and fraud risk.

How does Recourse Fallback work?

Each merchant is assigned a maximum Recourse Fallback limit by Two for you to access to distribute as you see fit. You decide which of your buyers has access to this feature and what their Recourse Fallback limit should be. We designed this feature to be self-service for total merchant control, available via both the Merchant Portal and API. After all, you know your customers best.

How do I start using Recourse Fallback?

To start using Recourse Fallback, simply get in touch with your Account Manager at Two or via support@two.inc.

Once this has been set up for you, you’ll see a new tab in the Merchant Portal called On Recourse under Customers. This will show you the total Recourse Fallback limit, current Recourse Fallback exposure across all your customers, and remaining Recourse Fallback limit across all customers.

Individual customer Recourse Fallback limits will also show per customer.

Can a buyer still be rejected if they have sufficient recourse limit left?

Yes, in order to protect you, we will still run a check on the most serious “red flags” about the Buyer, for example, if their company is being dissolved or is in severe arrears. We always inform you about the recourse rejection reason, which should happen very rarely, and you can write to us at support@two.inc to challenge it.

A note from the Two team

We recently caught up with Daniel Remenyfy, one of the key players behind this new feature, to hear more about Recourse Fallback and what it means for you and your customers.

What inspired the development of the new Recourse Fallback feature and how do you envision it changing B2B transactions?

“As a member of the Product team here at Two, I often have to make difficult decisions about what problems we solve first for our customers. This wasn’t one of them - there was an overwhelming merchant demand for a feature like this, thanks to the strong relationships they have with their customers.  This means they’re willing to go to great lengths to make sure they can check out using Two, even if the customer’s credit limit is exhausted.

Recourse Fallback makes it possible for our merchants to do exactly that! Our merchants still get paid in advance but also bear the risk. Because of that, we can offer more beneficial pricing on these orders.”

Can you tell us a bit more about how Recourse Fallback works with our API?

“So actually, Recourse Fallback can be used across our whole product portfolio; both inside our Merchant Portal and through our API. This allows full flexibility - our merchants can either decide to manually review their limits and their buyers’ exposure using our Merchant Portal, or they can set up their backend to tweak the rules automatically on the fly. Our API guarantees to give full visibility at any moment in time. We also only offer an order for recourse if it fits within our merchants’ predefined recourse limits.”

From your perspective, what are the most significant benefits that merchants will see with this feature?

The biggest challenge before launching this feature was that our merchants couldn’t get enough of Two! Jokes aside, merchants were often forced to use a secondary and inferior invoicing solution when their buyers had reached their credit limit. As you can imagine, that’s a huge pain point. This feature allows the merchant to trust Two as their end-to-end B2B payment provider, get paid out right away for these orders, and let Two take care of the post-sales journey.

Are there any plans to expand or enhance the Recourse Fallback feature in the future?‍

Sure! Even though Recourse Fallback is designed to maximise sales, we still have multiple layers of protections in place to check for “red flag” behaviour from the buyers before we allow a merchant to take on this type of order. Moving forward, we would like to allow our merchants to challenge these decisions in a structured flow, if they decide to proceed with the order despite our warning.

FAQS

You can manage customer Recourse Fallback credit limits directly from the Merchant Portal. Navigate to the Customers tab, select the Customer you would like to set up on recourse (you also have the option to search for customers using the search bar), and then hit the “on recourse” toggle. You can also update your customers’ recourse limits at any given time, as well as filter for Orders on recourse. Check out this Loom video for more help!

Any of our merchants in the UK and Sweden. The feature is not currently available in Norway.

If you are integrated directly via the API, any GET call will tell you if the order / instalment plan is on recourse or not, even before the order is fulfilled. You can also see it in our Merchant Portal by navigating to the Orders tab, both in the filter options, as well as browsing an individual order’s details.

Yes. We reserve the right to reject orders, even if placed using Recourse Fallback in case we identify any significant red flags (such as a buyer being blacklisted). This, however, should be extremely rare.

No, we currently do not offer a “partial Recourse Fallback feature”, so an order will either be fully on Recourse Fallback, or not at all. This means that your customer either needs to have a sufficient available credit limit, or sufficient available buyer recourse limit at their disposal to place an order. You can however decide to split your order into two on your own side, to maximise the utilisation of your credit limits - but this will mean your buyer will get two invoices.


‍

Talk to an expert

Want to read more?

Two launches world’s first integrated in-store B2B solution with Flow Retail and Eplehuset

In partnership with Flow Retail and Eplehuset, Two is happy to announce the world's first integrated in-store B2B payment solution! Read more about the partnership here.

Bildeler.no Achieves 96% Acceptance Rate for B2B Customers with Two

Bildeler needed help accepting more B2B sales to grow their business. Find out how Two helped them achieve a 96% acceptance rate!

Global Partnership Between Two and Viola Credit Allows 1.8 Billion EUR in Transactions

‍Two is thrilled to announce a new partnership with tech-driven global alternative credit asset manager Viola Credit, a leader in financial support and services.