Installment Payments

What is installment payment?

The term “installment payment” is used to describe two different things in e-commerce:

• Installments through a provider: The customer pays in installments to a financing provider, such as Anyday or ViaBill, and the provider pays the store. This is also known as BNPL.
• Deposit and balance payment: The customer pays a portion of the price to the store at the time of ordering and the remainder later, typically shortly before the item is delivered or the experience takes place. This is common for travel, courses, rentals, and pre-ordered items.

Shoporama’s installment plan is the second type. It also has nothing to do with bottle and can deposits, even though it’s also called a deposit.

Why take a deposit?

A deposit makes it easier for the customer to book early, because the larger amount doesn’t have to be paid until later. At the same time, you receive payment right away. When the remainder is due and what happens in case of cancellation are outlined in your terms and conditions.

Installment Payments in Shoporama

• Enable this in your profile: Under Webshop → Product Profiles, check the box for Installment Payments (deposit and balance) and select a fixed amount per item or a percentage of the price. The Travel, Course, and Rental buttons provide a good starting point.
• The date determines this: The deposit is calculated based on the ticket date, the first day of the rental period, or the delivery date of the item. If the date is closer than the number of days before the link is sent, the customer pays the full amount immediately.
• Two orders: The booking is for the deposit. Before the due date, Shoporama automatically creates a backorder and sends the customer a payment link for the remaining balance, including a deadline and a reminder.
• Correct VAT: Each order receives its own invoice with the correct VAT, and together they total exactly the full price.
• Pay in Full Now: Whether using a discount code, gift card, or points; with a subscription or EAN; and with payment methods such as invoice and bank transfer, the customer pays the full amount at the time of ordering.

The customer sees the payment plan in the shopping cart and checkout in the Montana, MontanaB2B, Delaware, and DelawareDK themes. Read the full guide with calculation examples in the article on installment payments.