name: Splitit FinOps
description: >-
  Financial operations considerations for integrating with the Splitit
  installment payment platform. Splitit operates on a merchant-funded model
  where merchants pay a subsidy fee to offer installment plans to shoppers.
  The platform provides full upfront settlement to merchants (except Premium
  Lite), with Splitit collecting installments from shoppers over time. Cost
  drivers include the chosen plan tier, the consumer APR configuration, order
  value, and number of installments. Merchants should account for processing
  fees, subsidy costs, chargeback exposure, and integration costs when
  evaluating total cost of ownership.
url: https://www.splitit.com/business/pricing-plans/
cost_model:
  type: merchant_funded_installments
  description: >-
    Merchants pay Splitit a fee (negotiated per contract) to offer installment
    plans. The fee covers the cost of interest subsidy (for 0% APR plans) and
    platform operations. Merchants receive upfront settlement for the full
    order value minus Splitit fees and any applicable card processing fees.

considerations:
  - area: Merchant Fees
    description: >-
      Splitit charges merchants a percentage fee per installment plan created.
      Exact fee rates are not publicly disclosed and are negotiated based on
      monthly volume, merchant category, plan tier (Essential/Flex/Premium/
      Premium Lite), and consumer APR configuration. Contact Splitit sales for
      a merchant fee schedule.

  - area: Upfront Settlement
    description: >-
      On Essential, Flex, and Premium plans, merchants receive 100% of the
      transaction value upfront (minus Splitit and processing fees) at the
      time the installment plan is created. Premium Lite provides partial
      upfront settlement with remainder paid as installments are collected,
      reducing the merchant subsidy cost.

  - area: Processing Fees
    description: >-
      Standard card network processing fees (interchange + assessment) apply
      to the initial authorization and each subsequent installment charge on
      the shopper's credit card. These fees are typically borne by the merchant
      and are in addition to Splitit platform fees.

  - area: Chargeback Exposure
    description: >-
      Merchants are exposed to chargebacks on installment plans. Splitit
      provides a Chargebacks API to manage dispute responses. Merchants should
      factor chargeback rates into their installment payment cost model,
      particularly for high-value orders (up to $10,000 default maximum).

  - area: Refunds
    description: >-
      The Splitit Installments API supports partial and full refunds. When a
      refund is processed, future installment charges are cancelled and any
      collected installments beyond the refund amount are returned to the
      shopper. Splitit fees may not be fully refunded depending on contract
      terms.

  - area: Integration Costs
    description: >-
      Integration costs depend on the chosen approach: plugin-based
      integrations (Shopify, WooCommerce, BigCommerce, Magento, Salesforce,
      Wix, SAP) require minimal engineering effort. Custom API integrations
      (Direct API v3/v4) require engineering resources but offer full white-
      label control. SDK support is available for Python, TypeScript, Go,
      Java, .NET/C#, and PHP.

  - area: Sandbox Testing
    description: >-
      Splitit provides a free sandbox environment at no cost for development
      and testing. Sandbox registration is self-service at
      https://register-developer.sandbox.splitit.com/. No production fees
      are incurred during sandbox testing.

  - area: Plan Tier Selection
    description: >-
      The choice of merchant plan tier significantly impacts FinOps:
      - Essential: Lowest merchant cost; shoppers may pay APR up to 35.99%
      - Flex: Balanced; variable APR enables cost sharing between merchant and shopper
      - Premium: Highest merchant cost; 0% APR drives best conversion
      - Premium Lite: Reduced merchant cost vs Premium; 0% APR with partial settlement