Microsoft 365 FundamentalsDescribe Microsoft 365 pricing and supportMedium

A Microsoft 365 administrator is setting up a new subscription for their organization and needs to choose a payment method. They want a method that allows direct debit from their corporate bank account and is suitable for recurring monthly or annual payments. Which payment method should they select?

  1. APayPal
  2. BPrepaid card
  3. CInvoice (bank transfer)
  4. DCredit card
Show answer & explanation

Correct answer: C. Invoice (bank transfer)

Invoice payment, typically via bank transfer or direct debit, is the standard method for corporate customers who prefer not to use credit cards for recurring large-scale subscriptions. Credit cards are also an option but direct debit is often preferred for bank accounts.

Why the other options are wrong

  • A. PayPal is generally not a primary payment method for large corporate Microsoft 365 subscriptions requiring direct bank debit.
  • B. Prepaid cards are not suitable for recurring subscription payments as they require manual top-ups and lack direct bank account integration for automated billing.
  • D. Credit cards are suitable for recurring payments but may not be the preferred method for direct bank account debit.

Microsoft 365 Invoice Payment

A billing method for Microsoft 365 subscriptions where customers receive an invoice and pay via bank transfer or direct debit, typically used by organizations.

  • Requires a credit check for new customers.
  • Available for monthly or annual subscriptions.
  • Allows payment directly from a corporate bank account.

Memory trick: Invoice for direct bank, cards for quick pay.

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