Contents

Installment Sales

Installment sale is a sale in which you permit your end customers to purchase a product and pay for it in installments over an installment period. A commission fee is charged when purchasing in installments (calculated as a percentage of an order price value).

When purchasing in installments:

  • The customer's 1st payment amount in the receipt is smaller.
  • The customer can start using a product immediately after paying the first installment - no waiting for the order to be fully paid.

Installment payments can only be applied to an entire order. The customer cannot purchase one product in installments and the other one without it in a single order. The installment functionality is available only to Individuals when paying with a bank card.

By default, the option to pay in installments is not available on the checkout page. To use the functionality, preliminary enablement is required.

Workflow scenario

If payment in installments is available and the customer is on the checkout page, then this customer has a choice how to place their order: using the option to pay in installments or making a standard purchase. Payment in installments is available if the following conditions are met:

  • The option to pay in installments is enabled for a checkout page.
  • There are no products that can only be purchased by Companies on the checkout page.
  • The order is for Individuals.
  • The payment method selected supports the option to pay in installments.
  • If there are dynamic products at checkout, the checkout page does not contain any products that are ineligible for installment sales.

Installment payments are executed as follows:

  • The customer makes the first installment payment when paying for the order manually (the card gets linked)
  • The second and third installments are paid automatically via recurring payments.
    A recurring payment is a payment made without participation of a cardholder (in an automatic mode) with the consent of this cardholder and according to a pre-approved schedule (including when certain events occur).
  • The number of installment payments necessary to be made to pay for the order is three.
  • The customer makes their first installment payment when paying for the order, the remaining installment payments are made automatically in accordance with a payment schedule.
  • The payment schedule is calculated for the order and is not changed later (a payment due date can be shifted if a payment attempt is unsuccessful).
  • The payment frequency is once per calendar month.

When paying for an order in installments, a special set of emails is sent to the customer:

  • Upon order payment:
    • Instead of a standard email concerning order payment details, an email containing a payment schedule is sent.
    • Two sales receipts are sent instead of one.
  • Prior to making the 2nd and 3rd installment payments:
    • The day before an estimated auto-payment date, an email containing a reminder of an upcoming account debiting is sent.
  • If a payment error occurs, an email containing the details of the error is sent.
    For more information, see the description of a negative test case.
Installment purchase emails when installment payments are successful

If automatic payment of the 2nd and 3rd installments is not performed according to the payment schedule:

  • 2 more attempts are made on the second and on the third day from the payment due date estimated (3 payment attempts altogether).
  • If all the attempts fail, the email concerning the payment error is sent to the customer (one email after the third unsuccessful attempt)
  • If the customer fails to make the 2nd installment payment, then its amount is included into the amount of the 3rd installment.
  • If the last attempt to pay the 3rd installment also fails, then the automatic payment processing stops.
  • In case of payment errors, no shifting of estimated payment due dates happens.
Payment error processing

A commission fee is charged when purchasing in installments.

The commission fee can be paid:

  • At the customer's expense - in this case, the commission fee amount will be added to the order price.
  • At your expense – in this case:
    • When the installment payment option is selected on the checkout page, the order price amount will not change.
    • The commission fee amount will be deducted from your remuneration when making mutual settlements.

The installment functionality is at the stage of testing and launching.
Please contact support if you would like to enable the installment payment option on the checkout.