Immediate Payment | Deposit & Balance

Authorization Payment

Freight funds authorised and ring-fenced at dispatch, captured only upon proof of delivery. The carrier operates with payment certainty. The forwarder retains assurance that settlement follows confirmed performance.

Deploy This Workflow
Security with Flexibility

The Optimal Balance for Established Lane Partnerships

Authorization Payment resolves the structural tension between carrier cash flow requirements and forwarder working capital optimisation across European B2B freight lanes.

Forwarders seek extended terms to manage their own liquidity. Carriers need faster settlement to sustain fleet utilisation and driver retention. Authorization Payment delivers a mechanism that satisfies both imperatives โ€” no full prepayment required from either party, yet both sides operate with financial certainty.

Carrier Gets

Ring-fenced freight funds before wheels roll. Zero post-delivery payment risk.

Forwarder Gets

Settlement follows verified POD. No capital deployed before service completion.

Authorization payment flow diagram

When to Deploy Authorization Payment

Select this workflow when lane trust exists but financial protection remains non-negotiable.

Established Lane Partnerships

Prior shipment history with the counterparty, but financial risk cannot be eliminated. Trust is proven; exposure is managed.

Moderate Lane Rates

The freight rate doesn't justify full prepayment but still warrants financial ring-fencing before the carrier commits fleet capacity.

Balanced Commercial Terms

Both parties seek equitable lane economics. The carrier is protected; the forwarder deploys no capital before verified delivery.

High-Frequency Lane Operations

Recurring partner with consistent weekly volumes. Authorization workflow reduces settlement friction while preserving the financial controls that protect both sides.

How Authorization Payment Executes

A documented, enforceable chain of events that protects carrier and forwarder alike.

  • Create the freight payment request

    Specify Authorization Payment as the workflow. Include consignment details, lane rates, and both parties' billing information.

  • Dispatch by email to the forwarder

    Secure, professional, fully documented delivery to the authorised billing contact.

  • Forwarder authorises, funds ring-fenced

    Payment is authorised and freight funds are ring-fenced. Capital is committed but not yet transferred.

  • Confirmation received, dispatch proceeds

    Verified confirmation that funds are secured. You dispatch with the certainty that settlement cannot be unilaterally reversed.

  • POD confirmed, funds captured

    Upon proof of delivery, the authorised amount is captured and settled to your carrier account.

  • Disputes hold the authorisation

    If delivery is disputed, the ring-fence remains until resolution. Full documentation provides an auditable record for both parties.

Dutch carrier Belgian forwarder scenario
Live Scenario

Recurring Lane Partner,
High-Frequency FTL Operations

A Dutch FTL carrier has serviced a Belgian freight forwarder's Beneluxโ€“DACH lanes for several months. Weekly volumes are consistent and on-time performance exceeds 97%. However, the forwarder's standard terms are 45 days from invoice, creating persistent working capital pressure that constrains the carrier's ability to scale fleet capacity.

The carrier migrates to Authorization Payment through CargoPay. For each consignment, the forwarder authorises the full lane rate before pickup โ€” funds are ring-fenced, and the carrier captures upon POD submission.

Carrier: Eliminates 45-day receivables cycle. Dispatches with lane-level payment certainty.

Forwarder: Preserves working capital. Settles only on verified POD performance.

The European Freight Context

While SEPA enables cross-border transfers to settle as rapidly as domestic ones, the surrounding processes โ€” reconciliation, counterparty data management, and cash application across multi-entity forwarder organisations โ€” remain manual and resource-intensive.

Authorization Payment through CargoPay automates the entire settlement chain, reducing administrative overhead while providing payment certainty across all EU member states and EFTA corridors.

Secure Lane Revenue Without Sacrificing Forwarder Relationships

Register, verify your fleet, and deploy an authorisation workflow that protects your cash flow while keeping forwarder partners engaged.

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