More about Splitit. . .
Zero Interest, Flexible Payment Plans for Consumers
What is the Splitit program?
The Splitit program allows consumers to pay for any product or service via interest-free monthly payments using the credit cards they already have in their wallet. The Splitit program is different than other finance offerings:
High credit card interest rates are completely avoided
- There is no credit check required, credit scores are not affected.
- There is no credit paperwork to fill out.
- Splitit is instant approval or decline within 2 seconds at store screen.
- Business owners look good for offering a service option that benefits consumer for once.
- There is no need to schedule payments or manage another billing cycle.
- There is no fine print or hidden costs/catches.
- Consumers can still enjoy benefits like points, cashback or mileage.
For merchants, Splitit offers several benefits:
- Increases size of average sale
- Minimal disruption/change – Works alongside existing equipment and systems – the merchant does not change credit card processing systems or terminals.
- Simple integration to ecommerce systems (e.g. Magento, Shopify, etc.
- No terminal required – operates on a virtual terminal/tablet with access to the internet
- Lower cost than traditional “over time” programs offered by banks, credit card companies.
- Can operate as a ‘discount’ program
What does the Splitit program cost?
The Splitit program offers consumers interest free financing that does not require an application or credit check.
For merchants, the Splitit program has shown to increase average ticket size, increase sales closing rates and is part of an ‘instant checkout’ process.
Merchants can participate in two ways:
Basic Plan – Non Funded Transactions
- Receive payments every month as the consumer is charged
- Funds will be settled by your processor the same way you are operating today.
- Merchant fees are 1.5% plus $1.50 per installment (in addition to normal credit card processing fees)
- Fees are charged per month
- Receive the full payment up to 3 business days after the consumer’s purchase
- Merchant fees depend upon on the number of installments
- 2-3 monthly installments : 3.0% + $1 per installment
- 4-6 monthly installments : 4.5% + $1 per installment
- 7-12 monthly installments : 7.5% + $1 per installment
- All fees are deducted directly on the full initial payment
- There is a reserve pool equal to 10% of the total purchase which is paid to the merchant at the time of the last installment payment. Some exceptions for large enterprise clients.
Who is behind the Splitit Program?
The Splitit program is supported by CapX Payments, a subsidiary of Prepaid Ventures, that is the exclusive United States agent for the developer and patent-holder of Splitit. CapX Payments is a partnership of industry veterans bringing nearly 75 years of credit card payment experience to the market. Prepaid Ventures, LTD. (www.ppvglobal.com) is one of the leading processors of prepaid debit card and disbursement solutions in the United States. CapX Payments and Prepaid Ventures use cutting-edge technology and decades of financial experience to offer innovative solutions to businesses looking to grow their business.