Installment Payments

Overview

When creating a program, product or subscription, you have the option of choosing to allow members to pay by an installment plan. This would mean that rather than paying all at once, they can pay equal amounts for a set number of payments.

To do this, you would check the box "Allow Installments" on the program or product edit page, and fill in the information as required:

Initial Payment Amount: If you want them to pay a specific amount, different from the rest of the installment payments right away as they are checking out, enter an Initial Payment Amount. Otherwise leave it blank or enter "0".

Number of Installments: This is how many payments the cost of the program or product will be divided into.

Installments Start: The day that the first installment payment will take place.

Payment Interval: The amount of time that will pass in-between installment payments. 

 

Installments are automatically calculated by taking the total cost of the program, subtracting the Initial Payment Amount (if any), and then divide what's left by the number of installment payments. 

Installment Payment = (Cost of Program - Initial Payment Amount) / Number of Installments

 

Example Installments with Initial Payment

As an example, if the cost of the product is $255 And you enter the following numbers:

This would mean the user would have to pay $55 at checkout. The installment payments would be $50 and their first installment payment would be on May 1, 2015, followed by 3 more payments (1 per month for the next 3 months):

  • At Checkout: $55
  • May 1, 2015: $50
  • June 1, 2015: $50
  • July 1, 2015: $50
  • August 1, 2015: $50

 

Example Installments without Initial Payment

As an example, if the cost of the product is $255 And you enter the following numbers:

This would mean the user would have to pay $0 at checkout. The installment payments would be $63.75 and their first installment payment would be on May 1, 2015, followed by 3 more payments (1 per month for the next 3 months):

  • At Checkout: $0
  • May 1, 2015: $63.75
  • June 1, 2015: $63.75
  • July 1, 2015: $63.75
  • August 1, 2015: $63.75

 

Example Installments with early Installments Start Date

If the Installments Start date is set to a time prior to the member registering for the program, they will be required to pay the first installment payment immediately at checkout.

The Payment Interval is based on the Installments Start date, not the first payment date. So if the Installments Start date is set for May 1, and the user registers on May 15, the Member will still have to pay the second installment on June 1 (if the Payment Interval is set to 1 month).

This could be useful if you want to make everyone in the program have the same second payment date, for example:

If you open registration for programs on July 1, anyone registering for this program will have to pay immediately at checkout.

The second payment for everyone would be 4 months after the Installments Start date - November 1.

 

Processing Credit Card Payments

When a member chooses to pay by credit card, their installment payments will appear as a list of pending credit card payments on their invoice. All credit card transactions are automatically processed over night. 

If any transactions have been declined, you will see a "declined" payment status on the payment transaction and a new pending credit card payment for the same amount will be created. The member will also see the pending credit card payment in their account and can add their credit card details to process the payment. Read more about declined credit card payments.

 

Processing Cheque Payments

When a member chooses to pay by cheque, their installment payments will appear as a list of pending cheque payments on their invoice.

For cheques, you will need to go to each invoice and mark the cheque payment as "paid" once you have received the cheque and completed the deposit. Cheque payments left as "pending" will continue to appear in the Member's account as an outstanding payment.

If you mark a cheque payment as paid, but then the cheque bounces: How to handle Bounced/NSF Cheque Payments

 

Notes

  • If you don't want members to be able to pay by installment, don't check the Allow Installments box. 
  • If you check the box to allow Installments, it will be given as a choice to the customer when checking out to either choose between full payment or installment payment.
  • If some programs do not allow Installments, and others do, the Member will still be able to pay by Installments for the programs that do allow it, but they will be required to pay for the programs that don't allow installments immediately at checkout, as well as any "Initial Payment" amounts indicated by the installments.
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