Shop Pay Installments

Shop Pay offers customers the option to pay for their order in full at checkout, or to pay in installment payments for orders from 50 USD to 17,500 USD.

Your customers can choose between the following installment payment options at checkout:

  • Four, biweekly, interest-free payments, for orders from 50 USD to 999.99 USD.
  • Monthly payments for orders from 150 USD to 17,500 USD. Monthly installment orders are interest-bearing from 10 to 30% APR, and may be paid in three, six, or twelve months depending on the purchase amount.

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

  • Calculated installment payment amounts.
  • Detailed information for 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 installment payments.

Activate Shop Pay Installments

If you're eligible to use Shop Pay Installments, then you can activate it.

  1. From your Shopify admin, go to Settings > Payments.
  2. In the Shopify Payments section, click Manage.
  3. In the Shop Pay section, check Shop Pay Installments.
  4. Accept the terms and conditions, and then click Save.

Refunding an order made using Shop Pay Installments

When you refund an order that was made using Shop Pay Installments, you send the payment back to the customer. If a customer requests a refund for an order they've made monthly payments for, then their paid interest isn't refunded to them. Interest is the cost of borrowing, and isn't refundable.

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 pay for an order using 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 to pay in installments.
  4. The customer reviews all of the installment payment options that are available to them, and then chooses an option.
  5. The customer reviews their purchase, and then makes their first payment at checkout.

The remaining payments are automatically charged to the customer's card based on the payment schedule they choose. 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.

Promote payments through Shop Pay Installments

If you want to promote payments through Shop Pay Installments, then you might consider the following ways to highlight installment payment options through your online store and marketing material:

  1. Get your online store ready by adding the Shop Pay Installments banner to your product page, and your cart page.
  2. On your online store, add a banner and FAQ that explains to your customers how Shop Pay Installments works.
  3. Promote 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. Download the 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.

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