Credit Pay Installment is an installment loan product for online payments made in app, PC website, and mobile website of the merchant. When an online transaction is paid with Credit Pay Installment, the full payment amount is transferred to merchant's Alipay account in real time (and then transferred to the account on settlement), while the customer will pay off the amount in installments.

Credit Pay Installment is currently available to payments made through Alipay Online Payment products, and offers two integration options:

• Add Credit Pay Installment to Alipay cashier page.
• Add Credit Pay Installment to the merchant checkout page, and optionally, merchandise detail page.

For more details, see User Experience. For integration steps, see Integration.

Product features

Application Conditions

A merchant must meet the following application conditions for Credit Pay:

• Integrated with at least one Alipay online payment products, including Web Payment, WAP Payment, and In-APP Payment, and achieve a certain transaction volume with the products.
• Have the technical capacity to complete the integration independently or with the help of service providers.
• Can cooperate with Alipay for customer services, data feedback and dispute settlement.
• Business operation is stable and possesses a certain volume of clients. Alipay will decide if a merchant is eligible according to the business operation time, transaction volume, scale, number of clients and so on.

Fee rate

Credit Pay charges a fee for each installment. Currently all the fees are paid by the customer.

The following table contains the fee rate for different installment plans. Use the correct rate to calculate the amount.

Installment formula

As illustrated in User Experience, the service fee details are presented to the customer before merchant sends payment request to Alipay. (See Fee Rate for details). 

1、Accuracy

All numbers involved in the calculation of installment is accurate to the cent.

2、Principal of each installment

The amount of principal of each installment is payment amount divided by number of installments.

a、Convert the payment amount to amount in cents.

b、Divide the amount by the number of installments, and round the result with the floor function. 

See the following Java code for example:

BigDecimal eachPrin = BigDecimal.valueOf(payAmount).divide(new BigDecimal(“value of hb_fq_num”), BigDecimal.ROUND_DOWN)

3、Service fee of each installment

The amount of service fee of each installment is the product of payment amount multiplying fee rate divided by number of installments.

See the following Java code for example:

a、Convert the payment amount to amount in cents.

b、Multiply the amount by the fee rate.

BigDecimal totalFeeInDecimal = BigDecimal.valueOf(cent).multiply(feeRate)

c、Round the result with ROUND_HALF_EVEN algorithm.

long totalFeeInLong = totalFeeInDecimal.setScale(0, BigDecimal.ROUND_HALF_EVEN).longValue()

d、Divide the result by the number of installments, and then round the result with floor function.

BigDecimal eachFee = BigDecimal.valueOf(totalFeeInLong).divide(new BigDecimal(“value of hb_fq_num”), BigDecimal.ROUND_DOWN)

4、Total amount of each installment

The total amount for each installment is the principal of each installment + service fee of each installment. Unit: cent.

See the following Java example:

BigDecimal prinAndFee = eachFee.add(eachPrin);

5、Sample case

The payment amount is 1111.11 CNY, where the customer pays in 3 installments, with a fee rate of 2.3%. The amounts are calculated in cents:

• Principal of each installment:

111111/3 = 37037 (370.37 CNY)

• Service fee of each installment:

111111 * 2.3%/3 = 852 (8.52 CNY)

• Total amount of each installment:

37037 + 852 = 37889 (378.89 CNY)

Refund

Read the following sections to learn about the details about Credit Pay Installment refund.

• Refund is send to customer's Credit Pay account directly. The refund cycle is three months by default, and is the same as that listed in the contract signed with Alipay.
• Refund for Credit Pay Installment works in the same way with that of an Alipay online payment product, including Website Payment, APP Payment, and WAP Payment. For more details, see refund interface.
• As the refund amount is transferred from merchant account to customer's Credit Pay account, the unpaid installments are paid off with the refund.
• Rules about the service fee refund:

• Any paid service fee is not refundable. Unpaid service fees listed in a statement must also be paid in full. Unpaid service fees that are not yet in a statement must be paid, but with a discount in proportion to the refund amount.

• Refund is used to offset the customer's installments. The installments in existing statements are offset first. For installments not yet listed in statements, the remaining refund offsets the installments from the last one backward. If any refund exists after the offset, the remaining amount will be transferred to customer's Alipay balance.