Instalments

About

Instalments are a popular payment plan method that allows customers the flexibility to pay a bill over a predetermined time period in regular, pre-set amounts, rather than all at once. Instalments are popular in areas with low credit penetration and high credit card interest rates (for example, Mexico and Brazil are two regions where instalments are very popular). Typically, the interest rates on instalments are lower than that of prevailing credit rates.

This page reviews the basics of how to use instalments with Reach.

Conceptual Overview

Displaying Instalments

There is a fee involved when using financing, but it's up to the merchant whether the customer pays the fee, if the merchant pays the fee, or if both contribute to the fee. This graphic shows how to display instalments when the customer pays the full fee.

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Calculating the Financing Fee

Financing Fee = Consumer Total * Instalment Rate rounded to the correct number of units for the currency.

So for a BRL order of $816.55 BRL and selecting 6 instalments at 7.3% rate the financing fee would be (816.55*0.073) = 59.60815, rounded to 2 units, $59.61 BRL.

This table shows what the merchant would put in the /checkout or /create API request depending on who is paying the financing fee. The ConsumerPrice is always the price displayed to the customer.