Shop Pay Installments

Shop Pay offers customers the option to pay in full at checkout, or to split their purchase into 4 equal, interest-free installment payments for orders between 50 USD and 1000 USD. There are no additional charges, interest rates, or late fees passed on to customers.

Your customers' credit scores aren't affected if they use Shop Pay Installments. However, if a customer doesn't pay their installment, or they make a late payment, then they might not be eligible to make purchases using Shop Pay Installments in the future.

When a customer views your products, the following information about Shop Pay Installments is displayed:

  • Calculated installment payment amounts
  • Detailed information to customers who want to learn more about Shop Pay Installments
  • The latest compliance and regulatory information

Shop Pay Installments can also improve conversion rates and average order value by letting customers know that they have the option to pay for certain orders in 4 installments.

Getting paid

If you're using Shop Pay Installments, then you'll receive your payout 1 to 3 business days after your customer's payment is completed. Custom payout schedules don't affect Shop Pay Installments payouts. Learn more about receiving payments through Shopify Payouts.

Refunding an order made using Shop Pay Installments

When you refund an order that was made using Shop Pay Installments, you send payment back to the customer. However, the Shop Pay Installments transaction fee isn't returned to you when you issue a refund. Learn more about creating returns and refunds.

Checkout experience for customers using Shop Pay Installments

To use Shop Pay Installments, a customer goes through the following steps:

  1. The customer adds items to their cart.
  2. The customer checks out using Shop Pay.
  3. The customer selects Shop Pay Installments and chooses to pay for their order in 4 installments.

After a customer selects Shop Pay Installments, they review their purchase and are presented with one of the following options:

  • Make their first payment at checkout
  • Make their first payment 2 weeks after the purchase was made

The 3 remaining payments are automatically charged to the customer's debit or credit card every 2 weeks. Customers get an email reminder before each payment is charged.

After the order is completed, you receive full payment for the order upfront, excluding the fee incurred for using Shop Pay Installments.

Eligibility

To use Shop Pay Installments, you need to be based in the US, selling in USD, and have both Shopify Payments and Shop Pay enabled. You can access Shop Pay Installments in the Shopify Payments settings on your store's Payments page.

Shop Pay Installments is powered by Affirm. After you activate Shop Pay Installments, Affirm periodically reviews your online store to make sure that you're in compliance with their prohibited business policy. If you violate the policy, then a message stating that your Shop Pay Installments account is suspended displays in your admin.

The following are examples of some of the reasons your Shop Pay Installments account can be suspended:

  • A password is required to access your online store.
  • The primary currency of your online store isn't USD.
  • The primary language of your online store isn't english.
  • Your store doesn't have an online website.
  • Your business is primarily a Business-to-Business (B2B) service.
  • Your business involves gambling, financial services, or another category that Affirm doesn't support.
  • You're selling regulated products such as alcohol, tobacco, or drug paraphernalia.
  • You're selling prohibited products such as adult toys, currencies, or weapons.

If your Shop Pay Installments account is suspended, then you can contact Shopify support for more information or to appeal your status.

Promote payments through Shop Pay Installments

If you want to promote payments through Shop Pay Installments, then consider the following:

  1. Getting your online store ready by adding the Shop Pay Installment banner to your product page.
  2. Adding a banner and FAQ in your online store.
  3. Promoting Shop Pay Installments through email marketing and paid media. You can use the pre-loaded Shopify Email template. To use the template, you need to have Shopify email installed.
  4. Downloading Shop Pay brand assets.

Before you make your marketing material available to customers, you need to review the compliance guidelines and approved messaging to make sure you are using the correct disclosures, and wording to describe and promote Shop Pay Installments.

Ready to start selling with Shopify?

Try it free