Sezzle is a ‘Buy Now and Pay Later’ tool that makes it easy to break up large purchases into multiple installments at no cost to the customer. Typically, this is for payments over six weeks with 0% interest. It is loved by consumers because it does not require any credit or impact on their credit score and they will never be sent to collections for an inability to pay. Here we will see Does Sezzle accept prepaid cards?
Does Sezzle accept prepaid cards?
The installment payments collected by Sezzle can be made directly by linking bank accounts or from credit cards and debit cards irrespective of the company of the card. Prepaid cards are also accepted but only for paying off an installment payment or payment of an existing order. At checkout, orders cannot be placed using prepaid cards. One can view the installments and make payments accordingly by logging into their Sezzle account.
How does Sezzle work?
It is basically a third-party service provider in the sense that it creates a link between the merchants and the shoppers. It allows the shoppers to have an Interest Free Payment Plan offered by the merchants. As soon as an order is initiated, Sezzle makes the payment in full to the merchant for the order immediately by ensuring that funds have been received by the merchant so that the order can be processed further.
No interest is charged but a formal fees is charged when there is a payment failure by the shopper or when the date of payments is to be adjusted more than once per order. Shoppers have some flexibility to move around the repayment terms if needed. If a shopper was not able to pay Sezzle for any reason , it would simply deactivate their account.
Competitive Landscape of Sezzle
There are few tools like Afterpay, Klarna etc for large purchases, Sezzle however has the highest approval rating in the space because they were one of the earliest players in the US market and the are very native to US rules and regulations and bought around credit which is very important.
They also have 15-20% full time data scientists that work around the clock to balance approval ratings with fraud protection and even by better understanding the shopper’s profiles they are able to reduce the risk of fraud and provide a valued service to the merchants and the shoppers.
Biggest Differentiator
Most importantly, as opposed to other ‘Buy Now Pay Later’ tools ,Sezzle does not impact an individual’s credit in any way and they offer no interest payments. They understand how hard it is for the credit agencies to stand out so they don’t make any money charging customer fees or interest. They commit themselves to being very end customer centric which is very good for the customers.
Integration with other platforms
Sezzle integrates with every major e-commerce platforms including Shopify, Magento, WooCommerce etc. They also offer an API for other custom sites.
When should you use it?
This tool works best for the stores that typically sees purchases of $500 and below. Customers can use it for purchases up to $1000 .Industries that are coping well with Sezzle are fashion, beauty, supplements , electronics etc. The younger generations are better target customers for this type of tool.
When shouldn’t you use it?
If one’s store average purchases is over of $1000 or if you offer a high fraud risk products then this tool is not for you.
Break-up of the purchase cost
The total purchase cost is broken down into four smaller payments over a span of at least six weeks. Around 25% of the amount is due at the time of purchase and the residual amount is to be paid in equal instalments each two weeks apart. At checkout , proceed with choosing Sezzle as a payment option and once done the product will be delivered just like any other order.
Requirements for getting started with Sezzle
Few requirements that should be taken care of before getting started with Sezzle are:-
A non-prepaid payment method should be available.
For shoppers in Canada and US the non-prepaid method could be payments from debit cards ,credit cards or by directly linking the bank accounts.
One should have a working email address
One should be 18 years of age or older
Availability of a Canadian or US contact number so that texts can be received
A good alternative payment solution to the shoppers .By facilitating simple implementing features , a fresh strategy is provided by Sezzle to the merchants for aiding conversions . It is providing financial freedom to its users. The Sezzle app enables the conversion of the original cost into Easy Monthly Instalments to make repayment of the amount easier. If the amount is repaid within six weeks, then no interest is charged by Sezzle.
