Paying on an installment plan is not a new idea. People have been doing it for a long time now for large life purchases like houses and cars. But here’s a twist: what if your online customers could buy more ‘everyday’ merchandise or services your store on an installment plan? What if these purchases worked just like regular credit card purchases, and could be made through your existing payment gateway? What if your customers could purchase in installments through their own existing Visa and MasterCard credit cards, without having to fill out a new credit application? What if such purchases were completely interest free? It would give your customers a new and attractive payment option, and most likely, increase your sales conversion.
Paying Over Time
Splitit provides installment billing services for online merchants. Here’s how it works: you add Splitit to your payment options, giving your customers the choice to pay by regular, interest-free installments instead of with a traditional credit card charge. When your customer chooses the Splitit option, he/she also selects the number of interest-free installments they want to pay. Splitit authorizes the full purchase amount on the customer’s existing Visa or MasterCard credit card. Then it charges them for the first installment — either immediately, or when the purchase item is shipped. Each month, Splitit reauthorizes the outstanding balance when the previous authorization is about to expire. Then it charges the purchaser’s credit card until the plan is finished, making the entire process better for the customer as well as the merchant.
Customers can make easier (and more likely) purchase decisions when they have the option of making interest-free payment with installments, through their existing credit card accounts. It is well known that many online customers abandon their shopping carts and do not follow through on a contemplated purchase. With Splitit, your customers have a new payment option without the need for a new payment mechanism. There is no need for an online customer to interrupt a purchase transaction – and possibly, abandon it — to apply for a new credit card; interest free installments make it easier for your customers to stay within their monthly budgets; and an additional payment option provides your customers with more choice and convenience. This can be helpful especially if a customer is contemplating the purchase of a big-ticket item.
Online customers tend to be more in tune with the business side of technology and new ways to make purchases. They expect convenience, choice, and a speedy, secure checkout. Splitit gives them all these things. Because the purchase is made through a credit card account, your customer does not lose benefits – he still builds up points, miles or cash back with a Splitit purchase. The charge shows up on his monthly credit card statement. He doesn’t have to worry about his card’s APR.
And as an online business, Splitit makes it easier for you to gain conversions because it allows you to offer your online customers more payment choices, a range of interest-free installment payment schedules and a tool which helps them manage their cash flow. The interest savings you pass along to your customers may also make it less necessary for you to use sales and promotions to entice them.