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Online Payments

Instalments in Israel

Last updated: 22-Mar-2022
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Overview

Instalments allow consumers to pay for a purchase in parts. An instalment typically covers one purchase/order and multiple payments over time.

Instalments differ from a recurring payment because in recurring payments it is not a single purchase, but an ongoing service like bills or subscriptions. In an instalment transaction, a single transaction is sent to the issuer, which in turn splits the total amount into several monthly payments.

instalment

Instalment Types

There are two instalment types: issuer-funded (credit instalments) and merchant-funded (regular instalments).

Issuer-funded (credit instalments)

  • The bank issuing the card to the consumer offers the instalments to the consumer
  • The bank charges the consumer's account in the agreed number of instalments and charges an interest
  • The merchant receives the total purchase amount at once
  • The issuer takes the risk

Merchant-funded

  • The merchant and consumer agree on the number of instalments, free of interest fees
  • The bank charges the consumer's account according to the instalment plan between the consumer and merchant
  • Merchants receive payments as the bank charges the consumer's account
  • The merchant takes the risk

Use cases 

Credit Instalment

You can offer consumers a credit instalment plan with a selection of the number of instalments, subject to the ABS terminal's issuer parameters.

  • The customer will provide the number of instalments
  • This instalment type carries interest fees
  • The payment terms (period, fees, etc.) are between the cardholder and the issuer (Verifone is not part of it)
  • Verifone does not manage the following instalments

Standard instalments 

You can offer consumers an instalment plan with a selection of the number of instalments and an option to set the first instalment amount.

  • The first instalment amount and the number of payments will be decided by the merchant and consumer
  • The amount of the following instalments is the quotient of the total purchase amount minus the first amount, divided by the number of remaining instalments. No interest fees are charged.
  • Verifone does not need to manage the following payments

Set up an instalments transaction via Checkout API

Additional information can be reviewed in the Checkout API documentation located here

1. Configure credit_term schema based on the table. Combinations of fields that are not described in the table will be rejected.

Transaction type credit_term authorization_type capture_now AV (amount=0) 3DS shopper_interaction
Instalments with different first payment INSTALMENT_STANDARD FINAL_AUTH
PRE_AUTH
true
no
no NO MAIL, TELEPHONE
Instalments with equal payments INSTALMENT_STANDARD FINAL_AUTH
PRE_AUTH
true
no
no YES ECOMMERCE
Instalment credit INSTALMENT_CREDIT FINAL_AUTH
PRE_AUTH
true
no
no NO MAIL, TELEPHONE

2. Configure number_of_instalments <= configurations.card.max_number_of_instalments.

  • If number_of_instalments = 1: perform transaction with credit_term=SALE
  • if number_of_instalments > 1: perform transaction with credit_term=INSTALMENT_STANDARD + instalment object 

Instalment standard example:

"configurations": {
        "card": {
            "payment_contract_id": "{{ppc_contract_id_abs}}",
            "dynamic_descriptor": "SNEAKERS DELUXE",
            "cvv_required": false,
            "capture_now": false,
            "authorization_type": "PRE_AUTH",
            "shopper_interaction": "ECOMMERCE",
            "credit_term": "INSTALMENT_STANDARD",
             "instalment": {
                "max_number_of_instalments": 2,
                "down_payment_amount": 10
            }
        }
    }

Instalment credit example:

"configurations": {
        "card": {
            "payment_contract_id": "{{ppc_contract_id_abs}}",
            "dynamic_descriptor": "SNEAKERS DELUXE",
            "cvv_required": false,
            "capture_now": false,
            "authorization_type": "PRE_AUTH",
            "shopper_interaction": "TELEPHONE",
            "credit_term": "INSTALMENT_CREDIT"
        }
    }

 

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