Instalments in Israel
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 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
If you are using Virtual terminal and you select instalments the values selected will be visible at a second step as follows.
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"
}
}