Are there any laws regarding late fees on electronic invoices?

UPDATED: Oct 1, 2022

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Are there any laws regarding late fees on electronic invoices?

I was told that it was not legal to include a late fee on an electronic invoice,
that the invoice must be sent by mail to include the late fee. This just doesn’t
sound accurate to me.

Asked on October 19, 2017 under Business Law, Virginia


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

That is not true: a late fee may be included on an electronic invoice. The real issue is that the client/customer/etc. must have had *prior* notice of the fee (such as in the terms of sale, service agreement, etc.) so that by doing business with you after knowing (or at least having the chance to know; obviously, you can't force them to read the terms, but you can at least put the fee in them) of the late fee, they could be said to have agreed to it. You cannot impose a late fee on them without them having had prior notice that paying late could result in one.

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