Payment Models (Merchant Types)
Splitit offers two payment models: Core and Managed. Core plans pay you your portion each time your shopper makes a payment during the lifecycle of a plan, using your designated processor (see list). Managed plans pay you in full shortly after plans are generated (less fees), and Splitit is the only provider you’ll need: We fund you and we provide detailed reporting and shopper-relationship management throughout the lifecycle of the plan—thus essentially requiring nothing more from your end.
The Core plan model is normally utilized by merchants that have adequate free cash flow and thus are willing to take a longer DSO (Days Sales Outstanding) in exchange for a lower transactional price. Note that Core plans require more invoicing transactions than Managed plans (both from your processor and from Splitit), so they also entail a slightly heavier accounting workload.
Under Core, you get paid after each shopper installment. So once a Splitit plan is initiated, you will receive a payment each time a shopper makes an installment payment—until the full amount is paid.
The diagram below shows the payment schedule for an example Core plan covering a $1000 purchase that will be paid in four installments by the shopper, 30 days apart. (Fees to Splitit are paid separately via invoice 30 days after the respective installments).
With Managed plans, you receive the full amount of your shopper's purchase on day one (minus fees), and Splitit handles everything else for the remainder of the plan—collecting from the shopper and reporting the details to you. Essentially, after plan initiation, you can sit back and let Splitit handle all remaining administrative and accounting duties, as there will be nothing more for you to do.
The diagram below shows the payment schedule for an example Managed plan covering a $1000 purchase to be paid in four installments by the shopper, 30 days apart. Fees are deducted from the total payment that you receive from Splitit at the beginning of the plan.