Everything about installment payment
Payment by installments refers to paying for a product in several installments. You can offer installment payments for your products in various ways with Tentary. Each option comes with its own advantages and disadvantages.
Overview
- Installment payment with Klarna
- Installment payment with PayPal
- Installment payment directly with Tentary
Installment payment with Klarna
If you have a Stripe account connected to Tentary, you can activate the payment option "Klarna" for your shop. Customers then have the option to select payment with Klarna when placing an order.
After clicking "Pay Now," customers will be redirected to Klarna. Based on various criteria, Klarna offers the customer different payment options. One of them is installment payment.
Payment options with Klarna:
- Pay immediately
- Pay in up to 30 days
- 3 interest-free partial payments
- Installment payment
No matter how the customer pays, you always receive the full amount credited to your account (minus the fees from Stripe and Tentary). The payment appears to you as a normal one-time payment, and you are not responsible for debt collection.
Important notes on Klarna
Klarna may not always be displayed in your shop, even if it has been activated. This is correct. Klarna has specific requirements regarding the currency and buyer's country of origin in which it can be used. We automatically check if Klarna is available for the purchase and then display it accordingly.
We have no control over whether Klarna offers installment payments to your customers. This decision lies solely with Klarna.
Installment payment with PayPal
If you have a PayPal account connected with Tentary, you can activate the payment option "PayPal" for your shop. Customers will then have the option to choose to pay with PayPal when placing an order.
After clicking "Pay Now," customers will be redirected to PayPal. Based on various criteria, PayPal offers customers different payment options. One of them is installment payment.
Payment options with PayPal:
- Pay immediately
- Payment after 30 days
- PayPal installment payment
Regardless of how the customer pays, you will always receive the full amount credited to your account (minus fees from PayPal and Tentary). The payment will appear to you as a regular one-time payment, and you will not be responsible for debt collection.
Important notes about PayPal
We have no control over whether PayPal offers installment payment to your customers. This decision lies solely with PayPal.
Installment payment directly with Tentary
As an alternative to the two options above, you can offer installment payment directly and equally to all customers with this option. Simply set up one or more installment plans for a product. These plans will then be automatically offered to customers when making a purchase.
In this case, installment payment is possible via credit card, SEPA direct debit, Apple Pay, and Google Pay. The first installment will be collected immediately, and the remaining installments will be automatically debited monthly. You will thus receive the collected amount (minus the fees from Stripe and Tentary) with each due installment. You will not receive the total amount directly.
The process
Buyers will enter their payment method at the time of purchase, which will be stored by us or Stripe, and future installments will be automatically debited by us. Buyers will not have the option to cancel the installment payment themselves after the purchase.
Seven days before the next due date, customers will receive a reminder about the upcoming payment. If this payment cannot be debited (often due to expired, blocked, or insufficient funds on a credit card), we will automatically send an email with a payment request and a link to set up a new payment method to the buyer. Additionally, the seller will receive an email for information. We will attempt to collect the money from the stored payment method several times in the following 14 days.
If buyers do not comply with the request and we are unable to collect the due payment after 14 days, you can independently forward the claim to a debt collection agency if necessary.
In addition, you can manually trigger a new payment attempt with the stored payment details. If the payment was previously unsuccessful due to insufficient funds, you have a good chance that the payment will go through at some point. You can also send a reminder via email including a note about potential legal actions to follow. This message is not a prerequisite for handing over the claim to a debt collection agency).
Frequently Asked Questions about installment payment with Tentary
What are the requirements for installment payment directly with Tentary?
Activation of this function requires a linked Stripe account. There are no other requirements.
Will installment payment be shown to all customers?
Yes, installment payment with Tentary will be shown to every customer. There is no credit check.
What happens if an installment cannot be collected?
In this case, the buyer will automatically receive an e-mail with a payment request and a link to change the payment method. The seller will also be notified of this situation by e-mail. In the following 14 days, several additional attempts will be made to debit the outstanding installment.
If the buyer neither complies with the payment request nor can the installment due be collected from the deposited payment method within the following 14 days, you can forward the claim to a debt collection agency yourself if necessary.
You also have the option of manually initiating a new payment attempt using the payment details provided. If the payment was previously unsuccessful due to a lack of credit, you have a good chance that the payment can be successfully made during this period. You can also send a reminder by e-mail, including a reference to possible subsequent legal action. However, this message is not a prerequisite for you to hand over the claim to the debt collection agency.
What is stated on the invoice?
If a customer requests an invoice for their installment purchase, the full amount will be shown on the invoice. At the bottom of the invoice, there will be a note stating that it is an installment purchase, and all future payment dates will be listed.
How will the customer know when an installment is due?
All installments and due dates will be listed in the purchase confirmation. Additionally, every customer will receive a reminder via email 7 days before the due date.
When does a customer get access to the product?
The customer receives the purchase confirmation including access to the product directly after the purchase and successful collection of the first installment.
Will the customer still have access to the product if an installment cannot be collected?
No. The customer will not have access until the outstanding installment is paid.
How much should the installments be?
You can set the amount yourself, but we recommend setting the total price of the installments slightly higher than the one-time payment. By offering installment payments, you are providing the customer with an interest-free credit that carries a risk of payment default.
Can the outstanding balance be paid all at once?
Yes, that is possible. In the order, the seller can collect the entire outstanding amount through a corresponding link.