Square Installments FAQs For Business
Financial products such as Square Installments are highly regulated. For this reason, if your customers have any questions about Square Installments, please have them contact us via firstname.lastname@example.org. Looking for Square Installments FAQ for customers? Visit the Square Installments website.
With Square Installments, by Square Capital, customers can easily apply to split their purchase into monthly payments—all while shopping at your store, at home, or online. With more time to pay, approved customers can buy more from your business.
Below you’ll find our most frequently asked questions on topics. If you have any questions or concerns about Square Installments, please contact us.
How does it work?
- Approved customers can choose to pay for purchases of $250 to $10,000 in monthly installments.
- Your customers can apply for Square Installments by filling out a short and simple online application.
- If your customer is approved and decides to pay using Square Installments, you get paid the amount of the purchase up front and in full.
- Your customer then repays Square Capital in fixed monthly payments.
How do I get paid?
You will get paid in full and up front by Square Capital on your standard Square deposit schedule.
Do I get paid if my customer doesn’t repay their Square Installments plan?
We take on the credit risk of your customer–so you can focus on what you do best. With limited exceptions, if your customer fails to repay, the payment sent to you will not be affected. You still get paid the amount of your customer’s purchase up front and in full.
The only exception is if you don’t deliver the goods or services you promised your customer. See our support article for more information.
Is there any setup required?
Installments is automatically built into your Square checkout and Square Invoices—setup is easy and it already works with the way you take payments. This program is available to select merchants, please contact us if you’re interested.
How can I accept a Square Installments payment?
There are two ways your business may be able to accept Square Installments:
- Square Installments through Square Invoices
- Square Installments at your point of sale
Please review the table below to learn more about which option might be better for your business. Please note that due to program restrictions, the option to sign up for Square Installments is only available to select Square merchants.
At this point in time, medical or healthcare businesses can only accept Installments at your Square point of sale. We don’t offer financing on invoices for healthcare businesses.
What is the difference between Square Installments for invoices and Square Installments for point of sale?
|On Square Invoice||At your Point of Sale|
|✔️Send your customers invoices using Square.||✔️Once you sign up, you get a custom Square Capital application URL—it’s a web address exclusively for your business.|
|✔️ Once you’re setup, the option to apply for installments will automatically appear when you send an invoice—there’s nothing extra for you to do.||✔️Customers apply by visiting this Square Capital URL right on their smartphone and filling out a short online application.|
|✔️ Your customers fill out a short online application.||✔️If they are approved and accept, they’ll get a one-time-use digital card number to pay for their purchase. This can only be used at your business and is valid for seven days.|
|✔️ That’s it. You get paid in full and up front if your customer is approved and chooses to pay with Square Installments.||✔️You simply key this digital card number into your Square Point of Sale app, through Virtual Terminal, or online through Square API.|
|✔️We provide print marketing for your store and banners for your website so you can easily let your customers know about this new option.|
Cost and Availability
How much will you charge me for this service?
|Square Installments for Square Invoice||Square Installments at your Point of Sale|
|2.9% + 30¢||3.5%|
There are no long-term commitments and you can cancel your participation in the Square Installments program anytime.
Is Square Installments available for healthcare or medical expenses?
Square Installments can be used to help your customers pay for out-of-pocket healthcare costs. This includes dental care, eye care, and other services not covered by medical insurance.
Square Installments is available at your point of sale only. At this point in time, we do not offer financing on Square Invoices for healthcare businesses.
As a healthcare provider, here are a few things to keep in mind that’ll help your customers have a great experience:
Square Installments can be used for out-of-pocket healthcare costs only. We want to make sure your patients take full advantage of coverage they have through their insurance plan.
We recommend you complete treatment within 30-days of accepting a Square Installments payment plan. Your customer will have to make their first payment (including applicable interest) within a month of using Installments. Providing treatment in a timely manner will help you make sure your customers are satisfied and not paying interest before they get treatment.
We recommend your practice maintain a fair and reasonable refund policy. Please let your customers know upfront about any restrictions in your refund policy. If goods or services aren’t actually provided, please honor a refund promptly.
Which industries or transactions are not supported?
Due to program restrictions, certain businesses and industries and/or transaction types are not eligible for the Square Installments program. Please review the following for transactions that are not permitted by the program: legal services, including bankruptcy attorney fees, credit repair services, bail bonds services, psychic services, hypnosis, the sale of live animals, insurance companies, the sale of automobiles or motorcycles, purchases involving alcohol, tobacco, or cigarettes, fireworks, plastic surgery, political organizations, non-profit organizations, collections agencies, wholesale transactions, products or services that are sold primarily to businesses, and travel purchases that involve airline tickets and/or hotel accommodations.
How can I sign up to offer Square Installments to my customers?
If you are interested in learning more about the program, please contact us to find out whether your business is eligible to participate. See below for the list of states that we currently operate in.
Is the Square Installments program available to all Square merchants?
At this time, Square Installments is only available to select Square merchants located in Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Kentucky, Louisiana, Massachusetts, Michigan, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, and Washington. Because of program restrictions, not every Square merchant will have access to enable this payment option for their business.
How do my customers apply?
Depending on whether your business is signed up to offer Square Installments through invoices or through your point of sale, your customer will either apply directly on the invoice payment page or by visiting a Square Capital-provided URL link. To find out more about your customer’s application process, check out Square Installments: The Customer’s Journey.
- Customers apply for Installments by filling out a simple online application. Your customers will need to know the total cost of their purchase with taxes and fees, so be ready to provide that for them.
- Many of your customers will get a real-time decision on the status of their application. Any exceptions will be reviewed and notified of eligibility. Typically, this takes 1-2 business days.
- Approved customers can choose from one of three monthly installment plans.
What is my customer’s APR? Are there any other fees?
Approved customers can choose to pay over 3, 6, or 12 months with rates from 0-24% APR*.
APR is based on credit and other factors. We clearly show your customers the total cost of paying in monthly installments with no service fees, no prepayment penalties, deferred interest, or surprises.
What if my customers have questions about Square Installments?
Consumer lending is complicated and heavily regulated; let Square Installments do the heavy lifting for you. Don’t get into loan specifics like APR, payback length, or fees with your customers. If your customers have any questions about Square Installments, please have them contact us at email@example.com.
Will Square Installments impact my customer’s credit?
All installment plans are subject to approval based on credit and other factors. We clearly cover this information in our application so your customers will have the information they need before they choose to apply. If your customers have further questions about credit, please direct them to firstname.lastname@example.org.
How quickly will they know the status of their application?
Many of your customers will get a real-time decision on the status of their application. Any exceptions will be reviewed and notified of eligibility. Typically, this takes 1-2 business days.
What if my customer is declined?
If your customer is notified that they are not able to finance their purchase through Square Installments, they will be notified privately of the decision and decline reason by email. They will still have the opportunity to pay with a debit card or credit card as usual. If your customer has any questions about their application, please direct them to email@example.com.
Is the Square Installments program available to all of my customers?
At this time, Square Installments is only available to approved residents in Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Kentucky, Louisiana, Massachusetts, Michigan, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, and Washington who make purchases at participating Square merchants.
Other Frequently Asked Questions
How do refunds and disputes work?
Square Installments purchases are subject to your business’s refund policy as usual. In a full refund, we cancel the payment plan in full. For partial refunds, we will apply a credit to the customer’s account.
If your customer has a Square Installments plan and claims they never received the item or service promised to them at the time of purchase, they can initiate a dispute claim with us. We have a process for sorting these out and will communicate with you throughout.
Please review the Square Installments Terms of Service for full details on refunds and disputes. If your customers have questions about refunds, please have them contact us at firstname.lastname@example.org.
What if my customer would like to spend more than $10,000?
We do not currently finance purchases over $10,000.
With Square Installments for your point of sale, you can use split tender in your Point of Sale app to divide their payment into two transactions. With split tender, they can pay for part of their transaction with Square Installments and the remaining amount can be paid with a debit card or credit card.
For Square Installments through Square Invoices, you would need to create two separate invoices to split a transaction. Your customers can only have one installment plan at a time.
My customers do not see the option to pay monthly on my invoices. What do I do?
Check transaction size
At this time, Square Invoices that fall outside of the range of $250 to $10,000 are ineligible to be financed through Square Installments. Please check your Square Invoice to make sure the price falls within this range.
At this time, Square Invoices that have tipping enabled are ineligible to be financed through Square Installments. To check and see if your invoice has tipping enabled, simply follow the steps listed below:
- Open the invoice in your Square Dashboard or POS application.
- Select to Edit the invoice.
- At the bottom right-hand corner of your invoice, you should see a field which states Allow Customer to Add a Tip. If this section is checked, uncheck the field in order to disable tipping from your Square Invoice.
Check out our Support center
Review our Support article for more information on why your customer isn’t seeing the option to pay with Square Installments.
If you’re still having issues with Square Installments, feel free to contact us. We’re happy to troubleshoot the issue with you.
Where can I find program terms?
Certain program restrictions and terms apply. For example, you, your employees, your business, and affiliates are not permitted to apply for Square Installments.
Where should I go if I have any additional questions, concerns or issues?
We are eager to hear from you! Please contact us to send us any questions or concerns, and we’ll get back to you right away.
*Maximum annual percentage rate (APR) of 18% applies to CA, FL, TX, CO, MA and LA, 16% applies to GA, NY, and NC residents, and 12% to VA residents. 0% APR is only available for qualifying applicants electing 3-month installment option. Loans are available to AZ, CA, CO, CT, FL, GA, IL, KY, LA, MA, MI, NC, NJ, NY, OR, PA, TN, TX, UT, VA, and WA residents only. All loans are subject to credit approval and the rate individual borrowers qualify to receive may vary based on individual credit history and other factors.
All loans are issued by Square Capital, LLC, a wholly owned subsidiary of Square, Inc., d/b/a Square Capital of California, LLC in FL, GA, MT, and NY. Square Capital, LLC NMLS ID: #1473167 www.nmlsconsumeraccess.org.