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What is such payment option called? (pay several times before getting product)

Discussion in 'White Hat SEO' started by loginname, Apr 16, 2017.

  1. loginname

    loginname Regular Member

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    Hi

    I'm helping a friend setup a webshop and he insist he want a payment option that works like this: The customer can pay split up payment of an item into several payments, and only if last payment is done the item is shipped..

    This is something I have not heard of. I have heard of where you get the product first and then contine to pay for it months after delivery... I have been arguing with my friend if this is what he mean. But it isn't

    The intention is that he cannot credit check every customer over the world. that is why he want customer to split payment into several payments..

    I don't know what this is called. Any suggestions that can help me would be great. I don't know the name of it so it hard to google it.....
     
  2. loginname

    loginname Regular Member

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    Customer can either pay for the goods at once or split it up into several payments. when splitting goods is sent when all payments are complete
     
  3. HoNeYBiRD

    HoNeYBiRD Jr. VIP Jr. VIP

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    Honestly i'm not sure, if such thing exists.

    Maybe try to look for "paying in installments" on Google and weed out solutions like BillMeLater/PayPal Credit for instance, because that's not what your friend wants.

    This looks promising: https://www.splitit.com/, although the same deal, you need to ship the product with the first installment.
    This is how it works:
    "Customer pays for his purchase using Splitit; an installment plan is created
    Splitit authorizes the full amount of the purchase on the shopper’s existing credit card and holds their credit line for the entire amount
    The first installment is charged a few seconds after the purchase authorization or upon shipping
    Splitit reauthorizes the outstanding amount when the previous authorization is about to expire
    Splitit will charge the shopper’s credit card every month until the plan is finished, reducing the hold on their credit line each month by the payment amount"

    This is a viable model, i don't think that shipping the product just after the last installment has been paid, would be a viable a model.
     
    Last edited: Apr 16, 2017
  4. teysuro

    teysuro Registered Member

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    I've never heard of it and I've made many webshops over the years, I doubt it exists.

    Why would anyone ever choose to pay this way?
     
  5. Revmatch

    Revmatch Newbie

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    I have never heard of something like that. If it wasn't for you/your friend dealing with international customers I'd just say do payment plants. The Splitit model is cool though
     
  6. primeCS

    primeCS Regular Member

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    Actually in financial sense, this can be workable.

    The seller just have to work out the interest rates on each payment received, and then provide rebate onto the item's original price when it is being delivered at the end of the last installment.

    In other words, the seller's pocket works as a bank to pays interest to the buyer's deposit, and this interest is used to offset part of the selling price of the item.

    I don't know what is this called, and I don't know if such thing exist.

    But I know that this is a very miserable way to buy something.
     
    Last edited: Apr 16, 2017
  7. Revmatch

    Revmatch Newbie

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    Or motivation for some people who are impulsive. I could think of a few broke friends who would do this but It's hard to gauge if it would take off.
     
  8. primeCS

    primeCS Regular Member

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    Definitely not for me.
    What if the shop owner closes down and disappear after my 99th payment?
    And there goes my diamond ring.

    I mean, with a bank, i know my deposits are safe (to some extend).
    But a webshop? Why shld i trust u with my money and i dont get my goods?? How do i know u wont run away with my money?

    The shop owner will have a lot to think about.
     
  9. zanderzero

    zanderzero Jr. VIP Jr. VIP

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    As others have stated, I have never heard of such a thing, but could work out.
     
  10. Tosmekop

    Tosmekop Jr. VIP Jr. VIP

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    OMG I'd be so pissed!
     
  11. primeCS

    primeCS Regular Member

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    On second thought, I reckon that this model will not work out.
    Here's why....

    Imagine today you buy a brand new laptop from Cruel Webshop for $2400. You set up a contract to pay $100 x 24 months.

    By the end of 24 months, the same laptop could be only selling for only $1200 becos the model is now old and ugly.

    Imagine you have waited 2 years and paid almost $2400 and have not even touched your new laptop, while other people are only paying $1200 and they get it immediately. (Now u look like an idiot)

    Now thats why i said its a miserable way to buy things. No one with the right mind will do this.
     
  12. HoNeYBiRD

    HoNeYBiRD Jr. VIP Jr. VIP

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    This thing or a version of this literally existed in the communism for cars in my country. You paid the price of the car and often you waited years to get to use it finally.

    Yes, this can be a reason, why this wouldn't work. although, if you let's say allow only 4 installments total, paid once monthly, the decrease in value wouldn't be that big for most items or there wouldn't be any.

    I think what you mentioned above, the trust issue would be the bigger problem. Without a bank backing the shop, it's not viable at all and even then, the demand for such service is still questionable.
     
  13. SERPTurbo

    SERPTurbo Jr. VIP Jr. VIP

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    The whole point of paying in instalments or on monthly basis is to get the product RIGHT NOW, so essentially you end up buying something you can't afford to pay for outright, however you are financially capable of paying for it in bits for an X period until the total is cleared.

    What kind of a retard is going to pay for a product x months without getting it beforehand? You might as well just save up the money during that period and go buy whatever you wanted to buy in the first place paying the full cash amount.

    Your friend needs to learn how transactions take in place before he starts selling anything.
     
  14. Debian

    Debian BANNED BANNED Jr. VIP Premium Member

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    The technical term would be layaway I guess. But I've never seen it used in online businesses.
     
  15. loginname

    loginname Regular Member

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    Think I need to talk to my friend tomorrow about this. He is no techie, but he says he have friends in Canada saying this exist. If I say it don't exist he say I don't understand it... LOL

    The intention is that if a poor guy buy the product he can make several small payments until he has paid the complete item.

    ok, I need to ask my friend to check with his friends in Canada what this payment solution is named, or atleast name me a webshop that is using it.
     
  16. SERPTurbo

    SERPTurbo Jr. VIP Jr. VIP

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    If the buyer doesn't get the product after the first payment, then this payment method makes no sense - why pay monthly for something that you are only going to get once you have cleared all the payments? As I said above, you could just save up and then go buy whatever you wanted.