Buy Now, Pay Later FAQ for Online Sellers

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The latest trend in the online payment industry is buy now, pay later (BNPL). If you have questions about buy now, pay later, the e-commerce specialists at SamCart are here with the answers. Let’s take a look at some FAQs for online sellers. 

What is Buy Now, Pay Later?

Buy now, pay later (BNPL) is a payment option that allows consumers to make purchases and pay for them in installments over time rather than paying the total amount upfront. More technically, these solutions are point-of-sale installment loans or short-term financing agreements. Popular providers include Klarna, Affirm, and Afterpay—all of which are available to online sellers through SamCart. 

How Do I Add Buy Now, Pay Later Options?

Thankfully, incorporating BNPL options into your online store is easier than ever. Your buy now, pay later setup will simply require a compatible payment processor and e-commerce platform. For SamCart creators, this is available through the SamPay platform. You can view our guide to setting up BNPL here

Does BNPL Work With Returns?

You likely do not anticipate order returns or cancellations as an online seller. However, it is essential that you are ready for anything. So, how does buy now, pay later work with returns?

The specific terms and conditions of BNPL services can vary between providers like Affirm, Klarna, and Afterpay. You will be relieved to know that most buy now, pay later platforms work to support the retailer’s return policy. However, in some cases, BNPL platforms might limit the returns. Ultimately, it is up to your customers to research the return policies of your shop and their BNPL provider before completing their transaction. 

Is Buy Now, Pay Later Compatible with Upsells and Order Bumps?

Buy now, pay later tools all work as usual with order bumps. However, because upsells are provided after the formal checkout, the options are slightly more limited. 

BNPL options will appear at checkout for all products—even those prepared to offer an upsell. However, Affirm and Klarna will not show up on the upsell page itself after checkout. In these cases, customers can still take advantage of your upsell by using Afterpay or a standard debit/credit card. 

Does BNPL Have Transaction Fees?

Yes, you should expect to pay some merchant fees with buy now, pay later transactions. While SamCart does not have any additional processing fees, BNPL providers almost always charge for their services. The exact fees will depend on a few factors, including:

  • Your product or service selling price
  • The BNPL provider
  • Your payment processor

Many online sellers adjust their selling prices to offset the cost of any potential fees. Additionally, buy now, pay later will not raise your prices for customers or charge them any extra fees—unless they miss a payment.

Is Buy Now, Pay Later Worth It For Sellers? 

In some cases, buy now, pay later options might sound like more trouble than they’re worth. However, you can rest assured that partnering with diverse payment options will help you boost sales and profits. BNPL offers a variety of benefits for customers, including:

  • Payment flexibility
  • Increased cash flow
  • Access to limited deals and savings
  • No interest (when paid on time)
  • Help managing budgets

These advantages can encourage buyers to spend more in your shop or allow them to make purchases they might not otherwise afford. Ultimately, many online sellers find buy now, pay later compatibility well worth it when they see these benefits boosting their bottom lines. 

SamCart E-Commerce with Flexible Payment Options

You can introduce buy now, pay later options with ease by partnering with SamCart. Our e-commerce platform stays current with the latest selling trends, e-commerce features, and payment methods. With the SamPay processor (powered by Stripe), you can integrate BNPL options into your online storefront immediately. Click here to get started with a SamCart trial today!