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When does the business (merchant) get paid when using Paythen? Does it work like buy now pay later companies?
When does the business (merchant) get paid when using Paythen? Does it work like buy now pay later companies?

Paythen is software that helps you offer and manage payment plans. There is no credit involved. You get paid when customers pay you.

Kritika Whitaker avatar
Written by Kritika Whitaker
Updated over a week ago

With Paythen, there is no credit involved. You get paid whenever a customer makes a payment. Since payments are processed through your Stripe account, you will see each payment as it is made by the customer – and the funds are transferred into your bank account based on the payout settings you have in Stripe. Paythen and Stripe fees are only charged as each payment goes through too. We get paid only when you do.

Is there a way for me to get paid upfront and Paythen handles the payment plan with the customer?

No. With Paythen, we don't offer any credit, unlike buy now pay later companies. With Paythen, you get paid as your customers complete their payment plan.

How can I ensure my customers complete their payment plan?

Paythen has various built in tools to minimize the chances of failed payments and to automate retries and ensuring you're always in the loop. Since we only get paid when you do, it is in our best interests to ensure we minimize failed payments. Here are some of the ways we help minimize failed payments in Paythen:

  1. When customers sign up, they get an email with their future payment dates and a link to their unique customer page where they can change their payment information, access receipts, see future payment dates and even repay their payment plan early

  2. Customers get a reminder 2 days before each scheduled payment – advising them of the amount that is due and letting them easily update their payment information if needed. This helps reduce failed payments because of insufficient funds or out of date cards.

  3. If a scheduled payment fails, both you as an admin and the customer gets an email immediately – and the customer can update their payment information.

  4. Failed payments are automatically re-attempted based on the settings you've chosen in your Stripe account. This ensures you don't have to follow up or manually manage failed payments since it happens automatically. You and the customer continue to get notified of any failed attempts.

  5. When a customer signs up to a payment plan, you can get them to agree to legal payment plan terms. You can use our default terms text or customize them to suit your business (we recommend customizing them to ensure they work for your business and country). This ensures you have a legal contract in place with each customer for the total amount of the payment plan.

  6. The Paythen team can help with any specific requests to change customer payment schedules or re-attempt payments sooner than the retry schedule if needed. Just reach out to us via chat.

  7. It is important to understand that when you use Paythen, you are ultimately taking on the risk if a customer defaults on their payments. For this reason, if possible, we recommend aligning the payment plan billing intervals to the provision of your product or services and ensuring you have customized your payment plan terms to suit your business. We can help you work out the most suitable setup for your business – just reach out to us via chat.

Where can I see or adjust my payout settings?

You can view and adjust your payout settings directly in your Stripe account here. A payout is what Stripe calls the transfers of payments you've collected from customers to be transferred from your Stripe account to your bank account after Stripe and Paythen fees, and if applicable, taxes.

In some countries, you have daily payouts available so transactions from the previous day are sent to your bank account daily. In other counties, only weekly or monthly payouts might be available. You can read more about country-specific payouts availability here.

You might be eligible for Instant payouts

Stripe is rolling out even faster payouts in some countries – instead of waiting a few days to receive payments into your bank account, you can now get them in minutes. At the moment, Instant payouts has limited availability, and is available to eligible accounts in the US, UK, Canada and Singapore. You can read more here. And you can check if your Stripe account is eligible here.

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