How to do a payment plan

[StoneSongSpirit]

Could someone help me in creating a three payment plan. How is this set up under direct payment? Thank you. Sorry for being clueless.

[Former_Member]

I may be wrong, but I am thinking it can't be done, at least with DC. It comes down to being able to show shipping info for each individual transaction. I think a seller doing paypal could end up with the same problem if there should be a dispute. If three payments were made, and a seller said they only got one item, I think you would not be able to show shipment or tracking, and would lose the dispute.

[StoneSongSpirit]

Thank you griffincat. Anyone have a creative way for this to work?

[GardenCopperArt]

No the best is to place the item on reserve and wait for the customer to pay if your willing to wait. They can go to Paypal I think they have a program where they may not be billed until a certain date. I guess your customer wanting the old fashion Layaway.......No Credit Card?

[StoneSongSpirit]

Thank you Kathy. she wants to buy in installment payments. Guess it can't be done.

[PattenCreations]

Not via DC

[StoneSongSpirit]

Thanks Deb.

[sherrytruitt]

You don't want to lose a customer, so I would have her pay with her credit card through paypal.

Direct checkout has no invoice system, and I would just explain that to your customer.

Paypal used to have a limit on how many times you could use a credit card prior to opening an account, but they have since waived that rule.

Paypal will use your delivery confirmation as proof should there ever be a dispute. Just make sure to reference your original sale in subsequent invoices.

Hope you get the sale.

[StoneSongSpirit]

Thanks Sherry. She is willing to use Paypal but I called Paypal and they said they do not have provision to pay in installments. Hope I don't lose the sale but am really stumped as to how to proceed.

[Former_Member]

Well, right or wrong, there are a lot of shops selling with both layaway and installment payments. It would obviously seem that it can be done, but you would lose your seller protection on the sale by doing so. It may be worth the small risk of there being a problem.

[StoneSongSpirit]

But how do you do the listing to accomplish this, change the price, make multiple listings? Think I already lost her though, but would like to know for the future. Thanks again.

[ohmama]

When I did a payment plan, I edited the listing title to say "reserved for so and so" and allowed "other" as a payment option. In the description of the listing, I wrote the terms... that included the agreed upon payment amounts and schedule.

It's been a while but if I remember correctly, the buyer checked out using "other" as the payment option and I sent her a paypal invoice for the first payment. On that invoice I once again wrote the terms and when the second invoice would be sent as well as stating the obvious... that the item would not be sent till paid in full by such and such a date.

My sale was successful but I don't mess with offering the "other" as a form of payment any more. It is better for me to just put it on reserve if it will be paid within a few weeks. Oh, be sure to put the final date that you will hold the item in your terms so there is no misunderstanding that the payments need to be on time.

[StoneSongSpirit]

Thank you Mary! That's a big help although I do think I lost the sale.

[ohmama]

You're welcome. It wouldn't hurt to convo the buyer, think positive.

[LamplighterJewelry]

Like Mary, I have used Paypal to invoice customers in installments. I do this on custom orders where I take 50% down payment and balance due on completion. Haven't had any problems so far.

Good Luck -
Emma

[StoneSongSpirit]

How do you set up the listing?

[LamplighterJewelry]

Invoiced deposit via paypal and setup the listing once the item was compete for the balance. If your item is in stock, you could reverse the process: list for the first payment (add terms to listing) and bill installments via paypal. Another way would be to renew the listing each time a payment is due for the payment amount. If you charge shipping you could add that to initial listing.

[StoneSongSpirit]

Thank you Emma, appreciate the help

[pierrmorgan]

Hi Terri - serendipitously, I just had a customer ask if I had a Layaway Plan. I told her I'd be happy to set one up for her. I figured it would be worth any risks to see if I liked the process of keeping track and sending her notices each week.

So I did an Etsy search with keywords "layaway plan" and many shop listings came up. I viewed the several different ones to see how they had worded their policy. Seems a minimum downpayment to reserve the product is the first listing - then however many listings and amounts necessary for the customer to pay off the balance within 90 days - 3 months. IF at that time they have not kept up with payments, an email reminder is sent and the product is taken off layaway and listed for the public - no refunds to the customer. Once the balance has been paid in full the product is shipped.

I went ahead and wrote out "Layaway Plan" payment policy on my Policies page under Payment Methods - have a look.

My customer just made her second weekly payment and it's been a pleasure communicating with her via Etsy conversations. Each week I put up a listing "RESERVED for..." with an amount we agreed upon, for her to purchase - she can use DC or PayPal. The 20 cent cost to me for each listing is nothing.

All the best, Terri!

[pierrmorgan]

OOps - I see I'm already a day behind these helpful convos from Emma and Mary. Thank you! My solution may not be addressing the initial concerns.

[VictorianaSedona]

I have done layaway plans several times, and I have broken the item down into 3 installments. I then edit the listing with the 1/3rd price and put layaway reserved for____. When they are ready for a second installment, I just relist until all three are paid. I have not written the policy on any listing, but always have the convos to back me up. It has worked so far, and I have one partially paid right now. I have never yet put a time limit either, but that sounds like a good idea.

[Former_Member]

As I mentioned earlier, there are many ways to set this up and make it work as long as you do not have any issues, such as a unhappy customer, someone saying they did not receive, or someone who pays for 90% of the layaway and decided they do not want to follow through and want their money back. I would guess you could write it up any way you liked, but if the whole policy of lay-aways and multiple payments is against Etsy policy, I would bet they will side with the seller every time, and require a full refund to the buyer.

In the case of a partial payment needing to be refunded, it is not a huge deal, after all you still have the merchandise, so you are not really out much, but in the case of payment being made in full, and a customer saying they bought three items and only received one, you will lose the case as you will not have tracking for each individual purchase.

I do not know if Etsy enforces policies and restricts or takes away selling privileges here for not following policy, but I am doing too good here to jeopardize any possibility by doing these things.

[StoneSongSpirit]

Dear Pierr,
That is very helpful, thank you! Wow I am impressed how you discovered everything. Spent many hours on this to no avail but can now be prepared if it happens again. Thanks to everyone who responded!
Terri

[Spellbinderie]

Terri: Emma's way is fee avoidance and should not be followed. Sorry Emma, I'm sure you did not realize that but you need a listing that is in the FULL AMOUNT, not a remaining balance, or you could get in trouble :(

Make a reserved listing for the full amount and reserve it for your buyer. You'll need to activate the payment method "other" before your buyer can checkout. This must be done in your payment options. I enable it for just that buyer then disable after they check out so no one else mistakenly uses it. A bit of a headache, in my opinion but must be done.

When your buyer checks out with "other" they don't pay but it will be on record with Etsy as a sale with the proper fees paid to Etsy. Be sure to put your terms in the listing just to back everything up.

Next you invoice your buyer thru paypal, being sure to include your item transaction number found on your Etsy sales invoice. Once you've finished paying, mark the item "paid" on Etsy and ship.

Good luck!

[Spellbinderie]

I've read that making multiple listings on Etsy to do a payment plan is not allowed. One listing per sold item, something like that. But can't find anything in the help section to verify this. Might be worth asking an admin.