How does Split Payment work?

03 Aug, 2022 . 4 minutes

What are split payments?

Split payment is a type of transaction that involves the use of multiple payment methods to settle a single transaction. For instance, splitting a bill for two people using different credit cards is standard.

Who uses split payment?

In most cases, split payments are already used in brick-and-mortar establishments. For instance, a consumer can split a bill for groceries by paying with various payment methods, such as cash, credit cards, and debit cards.

However, when it comes to making a split payment for a digital transaction, it's a bit harder to do due to the various payment methods available on e-commerce platforms.

One of the most popular platforms for split payments is e-commerce firm Crate and Barrel, which offers a variety of home accessories and furniture. Its checkout page allows customers to use various payment methods, such as gift cards, credit cards, and rewards, to pay for a basket of goods.

Due to the availability of various payment methods, many online retailers now allow customers to split their purchases without having to use multiple cards. For instance, a customer with a credit card can split a $100 purchase with a $40 Amazon gift card. After completing the transaction, the customer can use both the credit card and the gift card to complete the transaction.

Who offers split payments?

Merchants that accept higher-value transactions may benefit from offering split payments through a buy-now-pay-later provider, such as Klarna. They can also manage their own split payments using software or services.

How do split payments work?

A split payment allows the use of two payment methods for a single purchase. For instance, a customer might use cash and a debit card for a single purchase.

With the ability to split payments, e-commerce platforms can easily create custom payments or capture refund splits between multiple accounts. They can also customise the amount they wish to split. Merchants can also use the split payments feature to manage their operational costs.

Split payment platforms

A split payment app can be used to divide a bill for a group of people dining at a restaurant. Members of the group can each pay their portion of the bill using their individual credit cards.

Overview of APEXX Connect

The goal of the APEXX platform is to help e-commerce merchants fully optimise their payments stack. It allows them to connect their various components and improve the efficiency of their operations.

One of the most critical factors an e-commerce merchant must consider when choosing a payment processor is the ability to access the best-performing providers at a regional and market level. This can help them improve their chances of being accepted. Another essential aspect an e-commerce merchant must consider is the ability to re-route failed transactions. This method, known as auto re-routing, can help decrease the number of Do Not Honour errors.

The ability to route transactions through various payment providers via the API of the APEXX Gateway can also help e-commerce merchants improve their chances of being accepted. Aside from the usual factors, such as transaction origin and card security, the platform's intelligent routing engine can also help them determine which providers are performing well.

Overview of platforms

Splitting payments through third-party APIs can also help e-commerce merchants improve their chances of being accepted. They can also make vendor pay-outs and manage their marketplace money flow.


PayPal users can benefit from the company's Money Pool feature, which allows them to split their bills. It can be used to fund various expenses, such as a restaurant bill, by collecting donations from other PayPal users. You can also split a bill for a certain amount of money with several of your friends and then donate the accumulated funds to a charitable organisation.


One of the most popular payment plans offered by Klarna is Pay in 4, which allows customers to split their purchases into four equal instalments. For instance, if you're making a $200 purchase, you would pay $50 at the checkout.


Another popular payment plan from Sezzle is Pay in 4. This allows customers to split their purchases into four equal payments. The first payment is due at the time of the purchase, and the remaining three payments are due every two weeks.


Tabby's Pay in 4 plan allows customers to split their purchases into four equal payments. The first payment is due when the order ships and the remaining three are due monthly.


Clearpay makes a quick payment to the retailer so their order is immediately shipped after you pay the first instalment. With this payment plan, you can split the total amount of your purchase into four equal payments.


With Openpay, you can spread the cost of your purchases over time without additional fees. It's also available in different payment plans, such as retail, automotive, and home improvement.


Atome is a free mobile app that allows users to split their purchases into three equal payments. It's also free to download and use. Unlike other payment plans, Atome doesn't charge any service fees or interest.


Affirm recently introduced a new payment solution called Split Pay, which allows consumers to split their purchases into smaller monthly instalments. It can be used by retailers to make payments on their e-commerce sites.


Like other payment plans, Humm allows customers to split their purchases into smaller monthly payments. These payments can be more manageable and can be paid back without interest.

Split payment vs reverse charge

The reverse charge mechanism allows a buyer to transfer the liability for the goods or services to the seller. Under the split payment method, the public body that receives the goods or services only pays the price net of VAT and pays the necessary tax.

Split payments and credit checks

Point-of-sale loans can either increase or decrease in value depending on the provider. Some of the most popular providers of these loans, such as Affirm, AfterPay, and Klarna, report some loans to the credit reporting agencies.

Does split payment have a credit limit?

Although some platforms limit the number of credit cards they can accept, it's still important to shop responsibly. A merchant can also set a credit limit for their customers.

How long can you split payments?

Most providers in the UK allow their consumers to split their payments up to four months.

Are split payments safe?

Most platforms are PCI-DSS Level 1 certified, which means they follow industry-standard security procedures.

Although many platforms allow consumers to pay off large purchases without interest, it's still important to remember that they don't want to be used to spending more than your customers can afford.

Split payment fees

Most providers don't charge fees to the customers as they provide a service for the merchants.

Fees for the merchant

The amount a platform charges a merchant charges varies depending on the transaction type and the platform's security procedures. After every transaction, a company must pay aninterchange fee, also known as an interchange rate. This is a variable that can affect the amount that the platform charges.

Fees and interest for the customer

Unlike other payment methods, split payment providers don't charge additional fees or interest to the customers. They just make money from the retailers and the merchant that accepts their payments. It's important to note that interest and other fees from credit cards can still apply.

Online and offline purchases with split payment

Most offline stores will allow you to split your purchases with a credit and debit card. However, that will be rare in online stores as the complexity increases. Instead, online stores often allow customers to split their purchases with a credit/debit card and a coupon.

Making split payment purchases online

Online split payment purchases are more accessible, thanks to payment providers such as PayPal, Klara, and Affirm. While some stores allow customers to pay with two different cards, it remains rare without a third-party payment provider.

Making split payment purchases in-store

In-store split payments are more common. If the balance on your debit card is not enough, you can pay the difference in cash at the cashier, and your purchase will proceed without any problem.

How shipping and delivery work with split payments

It should not be a problem because customers will get their products in a single shipment unless there is a specific clause that the shipment will come in batches.

How returns work with split payments

If customers return their product and the merchant accepts it, the remaining installments will be cleared.

Sign up for the newsletter

By submitting this form, you acknowledge that you have reviewed the terms of our Privacy Statement and consent to the use of data in accordance therewith.

The APEXX Payment Orchestration Platform is the last integration you will ever need

Lowest cost
We structure ourselves to operate in the most efficient way. We are not an additional cost as we take the place of the payment gateway.
Lead in Orchestration
We enhance the payment experience by driving up acceptance rates thereby reducing friction and lost sales for our Merchants.
Excellent Customer Support
The APEXX Payment Orchestration Platform is architected to the highest industry standards of security and support ensuring that our merchants have the best protection and support access at all times.