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Using Pay Over Time on your Campaign
BackerKit’s Pay Over Time feature allows backers who pledge $150 dollars or more to pay their balance over the four months after the campaign, rather than all at once. This feature can make the high value pledge levels more accessible to your fanbase- it allows them to still get what they want, while also taking advantage of the delayed nature of Crowdfunding by spreading their pledge value over the few months between the campaign and fulfillment. This same delay is what allows us to also avoid some of the available (and somewhat predatory) debt servicers out there that require backers to take on an external line of credit and potentially pay additional fees or interest.
How does it work?
When enabled, any backer whose order value exceeds $150 will see the option to select Pay Over Time during checkout. When the campaign ends and the project reaches its funding goal, these backers will be charged a quarter of their balance monthly, for four months. Backers can choose to pay off their remaining balance early in the app if they choose. They cannot be imported into Pledge Manager or receive their pledge management survey until their balance is fully paid.
Is it a good fit for your campaign?
Pledges over $150: Only backers who pledge over $150 will see the Pay Over Time option, so if your average pledge amount is under $150, this feature is not a good fit.
Delayed Funds: Creators will receive the funds ~10 days after each payment. This means with the backers who select Pay Over Time, you will receive a quarter of their balance monthly for four months.
Stripe Fees: Creators will need to pay the standard stripe transaction fees on each Pay Over Time payment. This can affect your margin a bit on users that pay over time- so it is worth considering when deciding on pricing.
Pledge Manager Surveys: Backers who selected Pay Over Time will not be imported into Pledge Manager until their full pledge balance is paid. This means these backers' Pledge Manager surveys will be delayed.
- Fulfillment Timeline: Related to survey sending, when using Pay Over Time, it is best that you do not begin fulfilling until all four payments have been processed (about four months after campaign end). It's important that your fulfillment timeline gives enough space for the payments to be completed.
Pay Over Time can be a great option for creators who have expensive pledge levels, can afford to get some of their funds later in the game, and have some time before fulfillment.
How can I set it up?
The Pay Over Time feature is still in beta. In order to use it, please reach out to our team at crowdfunding@backerkit.com to have it enabled on your campaign.