payment-plans-and-installments

name	payment-plans-and-installments
description	Use when offering payment flexibility. Plans = lower barrier; one-time = full commitment.

Payment Plans and Installments

Payment plans: 30-50% higher conversion vs one-time. Slight risk of default. Stripe, PayPal handle.

Payment plan options

Standard offerings:

• One-time (saves $50-100) — full payment
• 3-month — 33% per month
• 6-month — 17% per month
• 12-month — 8% per month
• Klarna/Affirm (BNPL) — 4-12 payments

More payment terms = wider audience.

Pricing for payment plans

Standard markup:

• One-time: $497
• 3-month plan: $597 (20% markup, 3 × $199)
• 6-month plan: $697 (40% markup, 6 × $117)
• 12-month plan: $897 (80% markup, 12 × $75)

Why markup: time value of money + default risk + processing fees.

Default management

Risk of customer not completing payment plan:

1. Stripe charges automatically (low default)
2. PayPal — some customers contest
3. Klarna/Affirm — they handle default

Strategies:

1. Charge auto from card on file
2. Provide refund policy aligned with plan
3. Plan-specific cancellation terms
4. Late fee for missed payments

Where this fits in the X3 empire

Payment plan structure for CardPrepAI Academy.