How do installment plans work?
Monthly payments or installments are used for almost all business transactions, such as purchases, loans, and even interest-free tax payments are available at most stores using your credit or department store card. However, in many cases, you can save money by paying for your purchase in one payment other products that use monthly installments are personal loans, payroll loans, and even credit cards and the purpose of payment differentiation is to facilitate the settlement of obligations.
However, this term will not work if the debtor does not pay on time or stops paying. This will result in interest and special fees in addition to a bad reputation in Schufa, if one of the most effective benefits of weekly or monthly payments for customers is to avoid late payments or overpayments, is payroll.
Loan repayments are deducted monthly or biweekly as soon as the employee receives his or her salary. According to the National Banking and Securities Commission (CNBV), this makes it the payroll loan with the lowest delinquency rate (3.01%).
Payment in installments in commercial transactions
However, this will simply an adjustment in the invoicing procedures and policies, since these minimum guidelines must be considered:
- If an acceptance or verification procedure is required in the contracts, this will be done within the legal term or the one agreed upon; this provides an opportunity to make corrections in relation to the status of compliance with the obligations acquired.
- If the invoice was not rejected in a timely manner, the law will presume it to be accepted. However, if any correction is required, the term for payment of the obligation will be interrupted. This will start running normally again the day after the requested corrections are made.
- It is important to consider if in the procedure it is required to provide documents for the filing of invoices because in this case the deadlines will not be suspended or extended. The delivery of such support is at the expense of the beneficiary of the operation.
- The electronic invoice will be accepted and will start the deadline if it is guaranteed that the document is authentic, facilitates the identification of the signer, preserves the integrity of the invoice and that the recipient receives it.
- If withholdings with a higher value are wrongly made, compensation must be given.
How to set up payment in installments on your e-commerce site?
The installment payment solutions depend primarily on your CMS, but also on the choice of the actual payment method you use for your customers’ standard payments. For example, in PrestaShop, we have a robust Checkout module for our merchants, allowing them to legitimize orders in one click with a totally harmless sign-in 4x via Paypal. Of course, many installment sign partners are available with our decision, including Oney and Alma.
Best payment method options
Now that you know the main payment methods for an online store, it is important that you analyze each one and check the implementation costs, fees, interest and how much the company will disburse per month to have the services active with other merchants and get information about the operators of the machines, the cards and even the banks they use. To choose the best e-commerce payment method for your business, you need to know the main options on the market. Here are some ways to receive payment from your customers.
- Credit card
- Bank receipt
- Recurring billing
- Paypal
- Credit account