---
title: Account credit and prepaid balances
slug: account-credit-and-prepaid-balance
category: Payments & Billing
url: https://alaga.io/help/article/account-credit-and-prepaid-balance
audiences: business_owner, manager, staff
updated: 2026-10-24
source: Alaga Help Center
---

# Account credit and prepaid balances
Account credit is money a client has paid ahead. They can spend it on anything: a groom, a bath, daycare or products. Whatever they don't spend stays for next time.

You don't need a package for this. Packages are for a set number of visits. Account credit is a dollar balance.

## Where to find it

Open the client's profile. The **Account credit** card shows the balance, for example "$100.00 available". Click **Show history** to see every change.

## Add credit when a client prepays

1. On the **Account credit** card, click **Add credit**.
2. Enter the **Amount ($)**.
3. Under **How was it paid?**, pick **Cash**, **Check**, **Card (terminal)** or **Other**.
4. Add **Notes** if you like, for example "Prepaid for September".
5. Click **Add credit**.

The money is recorded in today's payments under the method you picked. It shows in the history as a prepayment.

You need the **Process payments** permission. Owners always have it.

## Spend it at checkout

When the client has a balance, checkout shows a **Prepaid balance** box above the payment choices, for example "$100.00 available · covers this $65.00".

1. Click **Use prepaid balance ($X)**.
2. The amount comes off the balance and the sale is paid.

**Credit is never used on its own.** Staff always tap to use it. If nobody taps, the client pays the normal way and keeps the balance.

You can also pick **Credit** in the list of payment methods. It shows how much is available.

If the balance doesn't cover the whole bill, the box only appears when the sale is on an invoice. The credit pays part, and the rest stays due to be paid another way.

A deposit on an appointment is kept as account credit too. Then the box says **Deposit on file** and the button says **Apply deposit**.

## Spend it when marking an invoice paid

1. Open the invoice and click **Mark Paid**.
2. Use the **Prepaid balance** box, or pick **Account credit ($X available)** as the **Payment method**.
3. If the credit only covers part of it, Alaga says how much stays due. The invoice becomes partly paid.
4. Click **Mark Paid** to finish.

## Adjust the balance

Use **Adjust** to correct a balance when no money changes hands. For example, to fix an opening balance from your old system, or give goodwill credit.

1. Click **Adjust** on the card.
2. Choose **Add** or **Remove**.
3. Enter the **Amount ($)** and a **Reason**.
4. Click **Save adjustment**.

The balance can't go below zero. The change is kept in the history. You need the **Issue refunds** permission.

## Convert credit into a package

If the money was really meant for a package, click **Convert to package**. This opens the sell-package window for this client with **Account credit** already picked as the payment. The button only shows when there is a balance.

See [Packages and memberships](/help/article/packages-and-memberships).

## Related

- [Giving a discount, loyalty reward or promo code](/help/article/discounts-loyalty-and-promo-codes)
- [Taking payment before checkout](/help/article/taking-payment-before-checkout)
- [Deposits for repeat no-shows](/help/article/appointment-deposits-for-repeat-no-shows)