Understanding Split Payments Online for Easier Transactions

Split payments online are a convenient way to share expenses with others, whether it's splitting a bill with friends or splitting a payment with a business partner.

In fact, a survey found that 70% of online transactions involve some form of split payment.

Split payments can be made through various online platforms, including PayPal, Venmo, and Square Cash.

These platforms make it easy to split payments with others, often with just a few clicks.

You can even set up recurring payments with some platforms, making it simple to split regular expenses.

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A split payment is a transaction method that allows you to divide the total cost of a purchase among different payment sources or methods.

You can use multiple payment options like credit cards, debit cards, UPI, or mobile wallets to split the payment online. This makes it easier to settle bills collectively, especially when shopping with friends.

Split payments provide flexibility and convenience in managing expenses, allowing you to pay according to your means and preferences.

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In physical retail environments, split payments are commonly used, but they can also be employed online with the help of services like Kasheesh.

Here are the common scenarios where split payments are employed:

Split payments can be used by a single person using different payment methods, or by multiple people using the same or diverse payment methods. They can also be used by a single person on monthly instalments, or by multiple people over periods.

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Split payments online offer numerous benefits that make them a convenient and efficient way to handle transactions. One of the main advantages is that they allow you to divide the total purchase cost among multiple payment sources or methods, making it easier to handle bills in group settings.

Split payments are especially convenient when dining out with friends, buying group gifts, or sharing expenses with roommates, as they promote fairness and avoid the burden falling on a single person.

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This flexibility also enables you to pay partially through different payment gateways or use multiple cards or digital wallets, making online transactions simpler and more convenient for everyone involved.

Split payments help in budgeting and managing cash flow efficiently, which is a significant advantage for individuals and businesses alike.

Here are some ways split payments can benefit you:

Split payments also help merchants reduce cart abandonment rates, increase sales, and achieve better business performance by providing customers with the ability to split payment and use different payment methods for the same purchase.

By empowering customers with financial flexibility, businesses can boost customer loyalty and show that they understand customer needs and explore every avenue to cater to modern demands.

Split payments online allow you to divide the total cost of a purchase among multiple payment sources or methods.

You can initiate the split payment process by informing the merchant or cashier about your intention to split the bill, as explained in Example 2. This can be done in-person or online.

Some online retailers, like Crate and Barrel, allow you to pay with a combination of cash and credit cards, enabling you to split payments according to your preferences, as mentioned in Example 4.

You can split your payment through various options, including gift cards and vouchers, credit or debit cards, store reward cards, cheques, and cash, as listed in Example 5.

To process split credit card payments efficiently and securely, you can use a payment gateway like Fondy, which allows you to divide the payment based on your predefined rules, as explained in Example 1.

Here are some common methods for split payments:

Some digital payment apps also support split payments, allowing you to divide the cost among multiple sources or methods, as mentioned in Example 4.

Some online retailers do offer split payments directly on their websites, although it's not the norm.

Target is one of the few retailers that allows you to split a payment between two credit or debit cards, both in-store and on Target.com. Walmart allows paying with multiple Walmart gift cards in addition to one credit card, but doesn't offer the option to split payment among multiple credit or debit cards.

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Amazon does allow using multiple Amazon gift cards in addition to one debit card, but doesn't offer the option to split payment among multiple credit or debit cards. If you want to split your payment across multiple debit cards, credit cards, and pre-paid VISA/Mastercard gift cards, you can use Kasheesh, which allows you to split any online payment across up to five cards.

Here are some online stores that accept split payments:

You can also split payment on Amazon using multiple payment methods at checkout for a single purchase, such as Amazon Pay balance and credit/debit cards.

Split payments online can be a bit tricky to set up, especially when it comes to integrating them with existing platforms. Technical limitations and operational challenges can arise, such as complex integration for retailers that need significant modifications to support multiple payment methods for a single transaction.

Retailers may worry about abandoned carts, which can happen if the checkout process is slowed down or if customers are confused by multiple payment options. This can lead to lost sales, something retailers generally try to avoid.

Adding split payment functionality to existing platforms, payment gateways, or point-of-sale solutions can also create difficulties if the infrastructure doesn’t fully support this type of payments. To avoid this, it’s recommended to build your online business with split payments in mind from the start.

Split payments inevitably make payment processing more complex compared to traditional payment models. Additional processing steps are required to split the full payment amount into separate instalments or handle multiple transactions.

The merchant portal is a crucial part of managing split payments. You can access detailed reports and information about your split payments through your Fondy merchant account.

Customizable reports allow you to track and monitor your split payments efficiently. These reports include lists of all automatic and manual split payments, as well as insights into unsplit payments and the reasons behind them.

Two key reports are available to you: a list of all split payments, including information about recipients and the status of funds received, and a list of unsplit payments with detailed information on where the funds were sent, in what amount, and when.

Fondy's API capabilities also enable you to leverage custom reports from your platform or marketplace to track all split and unsplit payments.

Split payments can be a game-changer for online retailers, but they also come with their own set of technical limitations and challenges.

Integrating split payments into existing platforms, payment gateways, or point-of-sale solutions can be a complex task. This is because online payment gateways and shopping cart systems often need significant modifications to support multiple payment methods for a single transaction.

Retailers worry about abandoned carts when implementing split payments, as the slower checkout process can lead to a less streamlined customer experience. This can potentially result in abandoned carts and lost sales.

Adding split payment functionality into existing infrastructure can create difficulties, especially if it's not fully supported. To avoid this, it's recommended to build your online business with split payments in mind from the start.

Split payments make payment processing more complex compared to traditional payment models. This is because additional processing steps are required to split the full payment amount into separate instalments or handle multiple transactions.

To overcome this obstacle, integrations with third-party service providers or advanced payment processing systems can be used. Ensuring necessary integrations with providers to support a variety of payment methods is also crucial.

Here are some key integration challenges to consider: