How do instalment payments work?
The customer picks a number of instalments at checkout. The merchant sends that number in the authorization request, for example Adyen’s installments.value field, and the issuer collects from the cardholder over the following statements. Adyen describes the first instalment being charged at once and the rest every 30 days. Plans vary by market: Adyen accepts 3, 6, 9, 12 or 18 monthly instalments in Mexico and any number from 1 to 99 in Brazil. In Turkey, iyzico’s instalment service returns the options for each card by BIN and lists bank card families such as Bonus, World and Maximum as eligible.
How is the merchant paid?
It depends on the market and the acquirer. Stripe says that for Mexican instalments the merchant receives the full amount minus a fee, as for a normal charge. Adyen pays Mexican instalment purchases in full when the first instalment settles, but in Brazil it pays each instalment as it settles, with a 30-day settlement delay, and offers advances for an extra fee.
Why does it matter?
Where customers expect to split purchases, a checkout without instalments looks expensive. As an illustrative example: a store in Brazil sells a phone for 1,200 reais. In 10 interest-free instalments, the customer sees 120 reais a month. If the acquirer pays each instalment as it settles, the merchant waits about ten months for the full amount, or pays to receive it early.
What are the trade-offs?
Fees grow with the number of months, eligibility depends on issuer and card type, and refunds and reconciliation must follow payments spread over many statements. Stripe supports Mexican instalments only on consumer credit cards from listed issuers.
Where does Omno use it?
Omno does not set instalment terms. Card attributes such as issuing country can be routing conditions, so a merchant can send domestic cards to a connected provider that offers local instalments. Whether instalments are available, and how they settle, depends on that provider and its acquirer.