Split happens: Your guide to making split payments less painful

Ever felt like you’re auditioning for a math competition every time a group asks to split the bill? You start doing mental gymnastics, hoping your POS doesn’t betray you, while someone inevitably asks, “Can I do 30% on this card and then the rest in cash?” Say goodbye to the days when your math isn’t math-ing!

Split payments make it easy to divide transactions between multiple payment methods, share a tab among friends, or even break payments into installments—no calculator required. Let’s dive into how it works and why your business (and your sanity) will love it.

What are split payments?

Split payments allow customers to divide a transaction into multiple payment methods or timeframes, such as using a credit or debit card, pay in installments, or share a bill with others. This functionality is essential for businesses looking to provide flexible and convenient payment options.

What are the different types of split payments?

Split payments go beyond just dividing a bill—businesses can offer various ways to split transactions, whether across multiple payment methods, between different people, or over time with installment plans.

• Splitting the bill between multiple people – Common in restaurants, cafes, and group activities where each person pays a portion of the total.

• Splitting the payment across different payment methods – A single customer can use multiple payment sources, such as cash and a credit card, to complete a purchase. Additionally, using multiple credit cards can help manage larger purchases or meet spending requirements for credit card bonuses.

• Splitting the payment over different timeframes (Installments) – Customers pay for a purchase in installments rather than all at once, which is often facilitated by BNPL (Buy Now, Pay Later) providers. Digital split payments enable consumers to conveniently split costs in real-time, enhancing the ease and efficiency of transactions.

Why split payments matter for your business

Split payments offer numerous advantages for both businesses and customers. Here’s why they matter:

Enhances customer experience with multiple payment methods

Customers appreciate flexibility when making payments, especially when they are short on funds, want to maximize rewards, or need to share expenses. Additionally, the ability to use multiple forms of payment, such as credit card, bank payments, or digital wallets, enhances the customer experience by providing more options to complete transactions efficiently.

Increases sales and reduces cart abandonment

Offering split payment options encourages customers to complete their purchases, especially for high-ticket items. For online purchases, splitting payments can vary between retailers, with some allowing the use of multiple credit cards and others not. The ability to use multiple credit cards is important because many customers have low credit limits for each card so they want to spread a purchase across different cards. By offering this option, you're reducing the likelihood of them abandoning their cart. This can help meet credit card spending requirements and manage credit utilization.

Expands your customer base

By allowing various payment methods and installment options, businesses can attract more customers who might otherwise hesitate to make a purchase. Additionally, accommodating customers who use multiple credit cards to manage their payments can further expand the customer base.

Improves cash flow for businesses

When customers pay in installments through third-party Buy Now Pay Later services, businesses still receive full payment upfront while the provider handles the financing. The Buy Now Pay Later is particularly helpful for small businesses or startups that rely on consistent cash flow, and not wanting to miss any sales.

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How split payments work

Businesses can implement split payments in various ways, depending on the payment environment.

At the POS (Point-of-Sale)

For businesses that frequently accept in-person payments, such as retail stores, restaurants, and coffee shops, split payments often occur at the POS station. This is particularly useful when customers visit your shop in groups. Here's how it typically works:

1. Customers request to split the bill.
2. The cashier enters the total amount on their point-of-sale and chooses the split option.
3. The cashier then hands the payment terminal to each person in the group to make the payment.
4. Payments are processed based on the preferred method(s).
5. Debit cards can also be used to facilitate split payments, especially for purchases that exceed individual spending limits.

Online purchases and e-commerce

For online businesses, such as eCommerce or online service-based businesses, split payments can happen on the checkout page or in the invoice payment page. Here's how it typically works:

• For eCommerce businesses: Customers can select multiple payment methods at checkout. Many online retailers allow split payments between a credit card and a gift card, but only a select few provide the option to split purchases using multiple credit cards or debit cards. Some businesses integrate BNPL services like Affirm, Klarna, or Afterpay to enable installment payments.
• For online service-based businesses: The invoice can be split into multiple payments by percentages or fixed amounts. In the case of a marketing agency securing a $10,000 project, the contract outlines a deposit upfront, then payments at each milestone. Instead of one huge bill, they use split invoicing. This means they can break down the $10,000 into smaller, manageable chunks.

For installment and split credit card payments

Businesses offering subscriptions or installment plans, like gyms, insurance companies, and SaaS providers, use installment to spread out payments over time. The businesses typically use recurring billing software to automate the process. They set up the payment details according to the agreed-upon plan, including the payment amount, billing cycle, setup fees, and any free trial periods.

• If customers opt for ACH/EFT transfers, they'll usually need to complete an authorization form. The payment will be collected automatically in scheduled installments.

• If you use a third-party Buy Now Pay Later provider (e.g., Afterpay, Sezzle), they will pay your business in full. For installment payments, we recommend businesses using ACH/EFT payments as they are cheaper than credit card transactions.

Payment providers that offer split payments

Different providers offer split payment capabilities tailored to various business needs.

Point-of-Sale systems

1. Helcim – Provides a seamless way to split payments in the Helcim Payments app and offers transparent pricing.
2. Square POS – Allows splitting transactions between different payment methods.
3. Toast POS– Ideal for restaurants that need bill-splitting features.

Online payment processors

1. Helcim - Gives merchants flexible ways to split payments across invoices, payment pages, and recurring plans. Whether it's partial payments, deposits, or full-fledged payment plans, Helcim makes it easy to manage one-time and repeat billing effortlessly.
2. Stripe – Offers API-based split payments for platforms and marketplaces.
3. PayPal – Allows partial payments and split transactions.
4. GoCardless – Supports direct debit payments and installment-based models.

BNPL (Buy Now, Pay Later) providers

1. Klarna – Offers installment payments at checkout.
2. Affirm – Allows customers to finance purchases over time.
3. Afterpay – Lets shoppers split payments into four equal installments.

What are examples of split payments in different industries?

Split payments allow businesses to divide a transaction between multiple payment sources, customers, or accounts. This flexibility is useful across various industries, making payments more convenient and accessible for both businesses and consumers. Here’s how different industries leverage split payments:

Restaurants & hospitality

• Splitting bills among multiple diners.
• Accepting a mix of cash and card payments.

Retail & E-commerce

• Offering customers flexible payment plans to increase conversion rates.
• Accepting a mix of gift cards and other payment methods.

Professional services

• Allowing clients to pay invoices in multiple installments or using different payment methods.
• Event & ticketing businesses
• Enabling friends to pay for their portions separately when booking group events.

How Helcim helps you offer split payments

At Helcim, we make it easy for businesses to accept split payments at no extra cost. Here’s how:

Split payments at your store’s checkout or online

Whether in-store or online, merchants can easily split payments between multiple cards, cash, or digital wallets, ask for deposits, or process partial payments. We also offer recurring billing for businesses that want to create payment plans—making split payments effortless and automated.

No hidden fees

Unlike some providers that charge extra for split payment features, Helcim offers it for free with no monthly fees or hidden fees. You only pay for it when you process a transaction.

Getting started is easy

Helcim's sign up process is fast and easy. No contracts, no paperwork, no lock-in periods. Just complete the registration, get approved, and you'll be splitting payments in no time.

Final thoughts

Split payments are a game-changer for businesses looking to provide flexibility and improve customer experience. Whether you run a restaurant, retail store, or online business, offering split payment options can help you increase sales and cater to a wider customer base.

Ready to start offering split payments with Helcim? Sign up today and experience the difference!