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How to create payment plans with a fixed number of installments

Offer layaway plans or payment plans to customers so they can select a payment schedule that works for their budget and timeline.

Larry Brager avatar
Written by Larry Brager
Updated this week

Why Offer Layaway?

Layaway plans let shoppers spread the cost of bigger-ticket items into smaller, predictable payments. That reduces cart abandonment, increases conversions, and ensures you ship only after the item is paid in full.


Building an Installment Plan in PayWhirl

  1. Charge Amount – how much to bill each time

  2. Charge Frequency – how often to bill (e.g., weekly)

  3. Installments – the number of successful charges required before the order is placed in your connected platform


Two Example Plans for a $100 Product

Plan A – Four Equal Payments

  • Up-front cost: $0

  • Weekly charge: $25

  • Payments: 4 (one per week)

  • Result: $25 collected each week; order created after the 4th payment and the subscription auto-cancels.

Plan B – Down Payment + Three Payments

  • Setup fee (down payment): $40

  • Weekly charge: $20

  • Payments: 4 total (one up-front + three weekly)

  • Result: $40 collected at checkout, then $20 per week for three weeks; order created after the last $20 and the subscription auto-cancels.
    Tip: Use the Setup Fee field for the larger first payment; keep the regular charge at $20.


Configure Fulfillment

  1. Save the plan, then open the Integrations section at the bottom of the page.

  2. Set Order Frequency to After Last Payment so the order triggers only when the balance is paid.

  3. Save again.
    Works with BigCommerce and ShipStation right out of the box.


Displaying Plans on Your Site

  1. Create a Widget

    • Pricing Table – forces customers to pick one plan.

    • Multi-Select – lets customers choose multiple plans if your use case allows it.

  2. Embed the Widget

    • Copy the HTML snippet PayWhirl provides.

    • Paste it into your site builder’s code section (BigCommerce Page Builder, WooCommerce block editor, Squarespace code block, Wix embed, etc.).

    • Publish and run a test checkout.


Best Practices

  • Name plans clearly—e.g., “4-Week Layaway” vs. “$40 Down / 3 × $20.”

  • Display installment schedule and cancellation terms in the widget features section, and decide on clear checkout messaging.

  • Test a full payment cycle with a test gateway customer before going live.

  • Offer both pay-in-full and layaway options so customers can choose what suits their budget.

  • Do not ship until the final installment succeeds. Payment methods can decline mid-plan, and PayWhirl cannot guarantee every customer will complete all payments.

Final Thoughts

Layaway can boost conversions by giving customers a manageable path to ownership, but it works best when you safeguard fulfillment. Always wait until the last installment clears before shipping, as card declines and failed payments can occur mid-plan. Before going live, run a test of the entire billing cycle to confirm that charges, order creation, and auto-cancellations trigger exactly as intended. Finally, make sure customers know precisely what to expect. A little upfront clarity goes a long way toward smooth, successful installment programs for everyone involved.

Please let us know if you have any questions or concerns. Our support team is always happy to help!

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