Allowing installment plans
In this article:
What are installment plans
Installment plans allow your customers to split the cost of your product into multiple payments over time. This makes your higher-priced products more accessible by breaking the total price into smaller, more manageable payments.
Pricing considerations
When setting up installment plans, keep these important points in mind:
- Each installment payment is subject to Gumroad's standard fees.
- If the total product price cannot be evenly distributed across the number of installments, the first payment will be higher to cover the remainder.
- For example, if your product costs $100 and you set up 3 installments, the payments will be $33.34, $33.33, and $33.33.
Customer experience
From your customer's perspective:
- They'll see the installment option at checkout with the payment schedule clearly displayed.
- After the initial payment, they'll receive the product immediately.
- Gumroad will automatically charge their payment method for subsequent installments.
- Customers will receive email receipts for each payment.
FAQs
What happens if a customer's payment fails?
If a payment fails, Gumroad will attempt to charge the customer again. After multiple failed attempts, the customer will be notified to update their payment information and will lose access to the product in the meantime.
Can I update the pricing for existing installment plans?
Updating the pricing or payment schedule for your product will only affect new customers. Existing installment agreements will continue based on the terms at the time of purchase. Even if you completely disable installment plans for your product, active installment plans will continue until they are completed.
Can customers pay off their installment plan early?
Currently, customers must follow the predetermined payment schedule. There's no option for customers to pay the remaining balance early.
What happens if I delete a product with active installment plans?
Deleting a product will cancel all active installment plans, and your customers will no longer be charged for future installments.
Are installment plans available for all product types?
No, we do not support installments for memberships or products with Pay What You Want pricing.