Splitit is a payment technology that allows you to offer installment plans to your customers using their existing credit cards. Unlike traditional Buy Now, Pay Later (BNPL) providers, Splitit does not require your customers to apply for a new loan, undergo a credit check, or pay added interest. Instead, it utilizes the available credit on their existing credit card.
This article covers everything you need to know about how the Splitit gateway works, merchant requirements, and how to manage transactions.
How Splitit Works
When a customer chooses to pay with Splitit at checkout, the process works through a pre-authorization system on their existing credit card:
First Installment Charged — The customer's first installment is charged immediately at checkout.
Authorization Hold — The remaining balance of the purchase is placed as a temporary authorization hold on their credit card. This is not a charge; it simply ensures the customer has enough available credit to cover the total purchase amount.
Subsequent Payments — As the customer pays each scheduled installment, the hold on their card decreases until the purchase is completely paid off.
Example: A customer makes a $500 purchase split into 5 installments of $100.
Installment | Amount Charged | Amount on Hold | Available Credit (on a $5,000 limit) |
Payment #1 | $100 | $400 | $4,500 |
Payment #2 | $100 | $300 | $4,600 |
Payment #3 | $100 | $200 | $4,700 |
Payment #4 | $100 | $100 | $4,800 |
Payment #5 | $100 | $0 | $4,900 |
How You Receive Payment
As the merchant, you do not have to wait for the customer to pay off their installments. You receive the full purchase amount immediately upfront (less applicable gateway fees), just as you would with any other standard payment gateway.
Splitit handles the installment collection from the customer internally, so you get paid right away while your customers enjoy the flexibility of paying over time.
Supported Cards
Splitit works with the following credit card brands:
•Visa
•MasterCard
•American Express
•Discover
•Maestro
•JCB
•Diners Club
Please note: Splitit does not support debit cards, prepaid cards, or gift cards, as these do not carry a revolving credit line.
Merchant Eligibility and Supported Regions
To use the Splitit gateway, your business must meet certain eligibility requirements. Splitit is available to merchants in the following regions:
Andorra, Australia, Austria, Belgium, Canada, Cayman Islands, Denmark, Faroe Islands, Finland, Germany, Gibraltar, Greece, Guernsey*, Hong Kong, Iceland, Ireland, Isle of Man*, Israel*, Italy, Jersey*, Liechtenstein, Luxembourg, Malaysia, Malta, Mexico, Monaco, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, UK, and US.
*Some restrictions apply in these regions.
While merchant availability is restricted by region, anyone in the world with a supported credit card can use Splitit to make a purchase from your store.
IMPORTANT: Eligibility is evaluated on a case-by-case basis by Splitit's Sales and Partnership team. Certain business types are prohibited from using Splitit. If you are unsure whether your business qualifies, please contact Splitit Support directly.
Installment Plan Options
Splitit offers flexible installment configurations. As a merchant, you can set your own parameters within Splitit's guidelines, including:
•Minimum and maximum order values for eligibility
•Number of installments (between 2 and 12 monthly installments)
Managing Refunds
Refunds for Splitit installment plans are handled just like any other gateway in Payments AI.
If a customer changes their mind or requests a refund, you initiate the refund directly within Payments AI or ClickFunnels 2.0. This action automatically triggers Splitit to process the refund to the customer.
When a refund is issued:
•Any future installments are immediately canceled.
•Any installments the customer has already paid are credited back to their card.
You do not need to log into Splitit to process the refund; Payments AI communicates with Splitit to handle the logic internally. However, you can view all refunds, payments, and detailed transaction history inside your Splitit merchant account if needed.
Connecting Splitit to Payments AI
To connect Splitit as a payment gateway in Payments AI:
From your Payments AI dashboard, click on Gateways in the top navigation bar.
Locate Splitit under the available gateways and click Connect Splitit.
A new window will open asking for your Splitit credentials. You will need to provide the following information:
Terminal ID: Enter your Splitit terminal ID.
User ID: Enter your Splitit user ID.
Password: Enter your Splitit password.
Once you have entered your credentials, click the blue Connect button.
Upon successful connection, you will be taken back to Payments AI and see a "Successfully Connected" status for Splitit in your Gateways tab.
Note: If you do not have a Splitit account yet, you can click the "Click here to create one" link at the bottom of the form)
If you have any additional questions about setting up or using the Splitit gateway, please contact our Support Team by clicking the support widget in the bottom right corner of this page or email us at [email protected].