Paying in installments: everything you need to know

The payment in several instalments is omnipresent in the large-scale distribution and on the merchant sites. This financing solution allows you to split the payment of a purchase into several installments. Discover its advantages and how it works in the following lines.

How does payment in installments work?

The principle of payment in several installments is relatively simple. It allows individuals to spread the payment for the purchase of a good or access to a service over 3 or 4 installments. Consumers are also sometimes offered payments over 10, 12 or even 20 instalments.

In concrete terms, instead of paying in full at the time of the transaction, the buyer has the option of paying in installments. On the day of the purchase, the consumer pays the first payment. The other payments will be deducted from his credit card at the dates previously defined in a schedule.

The financial effort is then lower. Payment by instalments is easily accessible. In the majority of cases, merchant sites and merchants use a partner organization to set up the payment in 3 times or the payment in 4 times on their sites.

What are the advantages of a split payment?

The payment in monthly installments benefits both consumers and merchants. For individuals, the financing solution avoids postponing a purchase when the necessary funds are not available. A payment in 3, 4 or 10 instalments allows you to acquire a good or to access a service without paying the total amount required in one go.

The risks of finding oneself in a delicate situation of overdraft or overindebtedness are minimized, since the granting of these financings is conditioned to criteria allowing to verify the authenticity of the customer and to measure his solvency. Payment in instalments is also an excellent alternative to traditional consumer credit.

For merchants, offering payment in instalments on their online store or in their physical store is an excellent way to build customer loyalty and increase sales.

Instalment payments : with or without fees?

Contrary to popular belief, payment in install ments is a paid service. Some fees may be applied. That is why it is always advisable to check the contractual conditions of the service before committing yourself.

In some cases, the cost of the payment facility may be charged to the customer. In this case, the financing organization that takes care of this payment option is obliged to communicate the total cost of the purchase, i.e. the cash price and the fees to the customer before the purchase is validated.

Some brands offer payment in several installments without charge. The cost of financing remains the responsibility of the merchant in order to facilitate the purchase decision.
For more information
Request a demo

They talk about us