Installments transaction Follow
In This Article:
- How does the authorization work in Installments transactions?
Installments transactions are only possible in ILS and Israeli credit cards.
In general, Installments transactions are quite unique in Israel.
The idea behind the Installments transaction is to split the transaction sum for a longer period and to reduce the financial commitment in the short term of the cardholder.
How does the authorization work in Installments transactions?
Authorization will reduce as long as the future Installments capture.
For example, in an Installments transaction of 1000 ILS in 4 Installments, the authorization of the cardholder will initially be 1000 ILS. Now, with each capture Installment, the authorization will decrease as well.
See breakdown below:
In the first month, the cardholder will pay 250 ILS and the authorization frame will be 750 ILS
In the next month, the cardholder will pay another 250 ILS and the authorization frame will be 500 ILS.
The month after the cardholder will pay another 250 ILS and the authorization frame will be 250 ILS
In the fourth (and last) month, the cardholder will pay the last 250 ILS and his authorization frame will also be released completely.
The merchant by default will receive the funds on a monthly schedule.
However, in order to receive the full sum of the transaction (although the cardholder will continue to pay the transaction in installments), we recommend joining our Discount service.
How to create an Installments transaction?
log in to your account -> Similar to creating a single transaction,
Navigate to the -> Transactions -> Create new
Select -> OpenvPOS
And fill out all the fields:
Product name - What is the product/service you charge for
Price - Amount to charge
Currency - Currency to use
Installments - Number of installments
When finish click -> Insert payment details
* Please notice, we must enter the full amount and not the relative payment amount.
In case of creating a payment request where the cardholder is the one who enters the transaction details, there is the option to limit the number of Installments payments to a fixed number to limit the cardholder choice of Installments.
For example, We chose to limit the number of Installments to “up to 6” Installments, the cardholder will see the payment request as follow:
When is the credit reflected in the payer's credit details?
Once the transaction credit is made in the clearing account, the credit will be reflected in the customer's credit details within 5 business days.