Back in April this year, we excitedly announced a new feature designed to help boost B2B sales - Recourse Fallback, available to all UK and Swedish merchants.

Recourse Fallback allows your customers to continue placing orders using Two, even if they’ve been rejected for credit or they’ve reached their credit limit. 

For example, let’s say your customer has £50,000 worth of unpaid orders and they’ve reached their credit limit with you. Recourse Fallback allows them to continue placing new orders using Two, while you bear the credit risk.

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So, why are we bringing this back up?

Well, other than it being a game-changing feature, merchants like Creoate have seen some amazing success!

“Recourse fallback feature has allowed us to increase our revenue multi fold by allowing us to fund a larger variety of buyers. That in turn has helped to create a history with Two, allow our buyers to grow even further.” Sahil Lamba, Head of Operations, Creoate.

The end result is a 66% increase in Total Order Value this year so far! This is exactly the reason this product was developed at Two - Allowing our merchants to grow their sales and their business while providing the best purchasing experience possible. You can learn more about Creoate's success with Recourse Fallback below where we caught up with Sahil to discuss more!

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More recently, Recourse Fallback has also received an exciting update, including multi-country and multi-currency support! This means Recourse Fallback works when selling to buyers in different countries using different currencies.

Have questions about Recourse Fallback? Check our FAQ section below:

How do I manage Recourse Fallback credit limits?

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!

Who can use Recourse Fallback?

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

How do I know if an order has been placed using Recourse Fallback?

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.

Can Two still reject a customer order, even if it has been placed using Recourse Fallback?

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.

Can I split Recourse Fallback credit limits for a single order?

‍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.