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  • #995124
    paul.gangemi86
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    Hi,

    I’m looking at adding some type of payment installment or reoccurring payment option to my cart. (Woocommerce on wordpress) I already have this plugin to take cards (http://www.sydneyecommerce.com.au/product/nab-transact-woocommerce/)

    If a customer purchase $1500 worth of product, instead of paying all at once I’d like to give them the option of paying this in installments, eg $500 over 3 payments, paid fortnightly or whatever combination I allow.

    I’m assuming there are many ways to do this?
    – Setup a direct payment
    – Just bill their credit card on the designated dates
    – Other ways?

    Would there be credit checks that need to be done?

    Curious if anyone has done this before and what they have discovered?

    ie if I choose to bill their card, what happens if they cancel the card and disappear?

    Thanks.

    #1200117
    nduell
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    • Total posts: 57
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    Hi Paul,

    It would be best to do some research into the Cart software that you are using and what options/ extensions are available for subscriptions. Payment gateways like stripe and paypal offer subscription payments with an ending period, which sounds like what you are after.

    Which cart software are using? I am sure a member here will have some guidance on what can be done. If it WordPress based website and cart extension, I can definitely give you some guidance.

    Cheers,

    Nick

    #1200118
    LucasArthur
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    paul.gangemi86, post: 236979, member: 80448 wrote:
    Hi,

    I’m looking at adding some type of payment installment or reoccurring payment option to my cart.

    If a customer purchase $1500 worth of product, instead of paying all at once I’d like to give them the option of paying this in installments, eg $500 over 3 payments, paid fortnightly or whatever combination I allow.

    I’m assuming there are many ways to do this?
    – Setup a direct payment
    – Just bill their credit card on the designated dates
    – Other ways?

    Would there be credit checks that need to be done?

    Curious if anyone has done this before and what they have discovered?

    ie if I choose to bill their card, what happens if they cancel the card and disappear?

    Thanks.

    This has been raised a few times before, not my forte although there are several things to consider – such as what web site are you using?

    Most facilities are done this way via a plugin, such as subscriptions with woocommerce and sure there are similar in other carts… What is important to note, if this is what you are asking, is can you just charge the card over 3 instalments? The answer, i think is no due to the legalities of keeping credit card details on file :(

    If you are retaining the goods, i feel there would be no need to do a credit check? unless you are doing the goods on a $0 payment upfront and client gets goods upfront.. IF this is the case, i would consider using an intermediary that is geared towards doing this and has contracts already arranged (GE finance etc etc like the big retailers use when doing this type of service)..

    It can be done, just ensure you dont try and cut corners and do things manually or against the credit card storage rulings etc etc…

    Look forward to other more details responses.

    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1200119
    paul.gangemi86
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    Hi Nick and Jason, thanks for both your responses. I have updated my original post to add some extra information.

    The reason why I didn’t use stripe in the first place is because of the fees they charge, as my products have very low margin, ie around 30% every bit I can save on transaction fees is significant.

    Saying that I can have the traditional card payment with the NAB transact plugin with low fees for if they want to pay upfront and I could have the stripe subscription as another option where I could always add a couple of dollars for allowing the customer to make payments in installments.

    My concerns are because of the high value electronic items I sell, what if someone decides to purchase $10k worth of items on a payment plan then just cancels the card or disappears?

    #1200120
    LucasArthur
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    paul.gangemi86, post: 236982, member: 80448 wrote:
    My concerns are because of the high value electronic items I sell, what if someone decides to purchase $10k worth of items on a payment plan then just cancels the card or disappears?

    Does this mean you are willing to let them leave your store WITH items on a payment plan? This would require much more than just the options we suggested above, it requires legal docs and so forth and credit checks etc and even if you did this you are still burdening the chance of someone doing a runner and then chasing it in court which can also be expensive.. As suggested in my original reply though you may want to partner with someone (a credit agency) that does this already…

    There may be other solutions, but again not my forte.

    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1200121
    LucasArthur
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    Also, as you appear to be running Woo, you may also want to check this out to see if it meets your expectations:
    https://woocommerce.com/products/woocommerce-subscriptions/

    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1200122
    arrowwise
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    Running recurring billing relies on rock solid systems. Not sure if driving this out of a woocommerce plugin ticks all those boxes? It might be worth weighing up to run it via your accounting / billing system and synchronize back to woocommerce if necessary.

    As suggested you have the pertinent checks and balances on purchase / value risk too.

    #1200123
    nduell
    Member
    • Total posts: 57
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    Hi Paul,

    As Jason has suggested you potienially could use WooCommerce’s subscription plugin to create a limited period subscription with your current payment gateway ( it does support WooCommerce’s version NAB transact plugin, so it seems it should work with sydneyecommerce.com.au version, according to there website NAB does support recurring card payments via NAB Transact Batch or Scheduled Payments. ).

    Otherwise, you will be able to use it with Stripe, which has slighting higher fees by 0.25%.

    Generally speaking online payment plans are always have a higher cost than the single price. So don’t be afraid to increase the cost.

    It sounds like the issue is more the check and balances of the customer, with the higher prices of the items you are selling I would suggest offering a “apply for payment plan” and send these users to a form that would allow you to register users and capture more detailed information, then only allow the subscription based pricing to those users/customers. Gravity forms would be a great plugin for this as you can hook in ABN lookup, capture geolocated addresses and you can set it up so that you can review each user’s application before making the subscription model available.

    Obviously, as you are taking on more personal information of the user, you be need to take extra security measures. There are Gravity Form extensions that can force SSL on forms and encrypt entry data to ensure the data is kept safe.

    Cheers,

    Nick

    #1200124
    eWAY
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    • Total posts: 524
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    Hi there Paul,

    Maclean from eWAY here. I would strongly suggest against trying to achieve this with a standard payment gateway.

    Why?

    If a user cancels their card or doesn’t have the funds available then you have no recourse. They’ve got the product and they’ve still got 2/3rds of their money.

    There are a few services popping up in Australia that facilitate installments/payment plans for you however they handle the collection of the funds for you so that you don’t lose out.

    Check out: “zipPay” and “Afterpay”. They’ll transfer you the full amount when the visitor checks out and will then you don’t have to worry about collections, they have their own payment plan with the customer.

    If you’re interested in chatting about how eWAY can be a great option for your card payments then drop me a PM and I’ll have a success agent get in touch. We can come up with pricing that meets what you need.

    Either way, good luck with your endeavours!

    Maclean

    #1200125
    John Debrincat
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    paul.gangemi86, post: 236982, member: 80448 wrote:
    My concerns are because of the high value electronic items I sell, what if someone decides to purchase $10k worth of items on a payment plan then just cancels the card or disappears?
    Hello Paul,

    Go and take a look at Zipmoney (http://www.zipmoney.com) this is a service where you can offer immediate financing on your website. The finance is generally approved immediately and you get the full funds in 24 hours or so.

    Zipmoney take the risk and your fees are based on the interest free period that you offer to your customers.

    It is a really neat solution for online stores selling high value items. It takes the responsibility to collect the money and cover the risk off you.

    Recurring payments like eWAYs ReBill and others have their place but not as an option to financing unless you are prepared to carry the risk.

    Hope that helps.

    John

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