Annual in installments

Annual in installments sells the plan for a year in a single purchase. By card, the year is split into up to 12 installments; by PIX or boleto, it's paid in full. After 12 months, it renews.

#What it's for

It's the way to receive the whole year without asking the member for the full amount at once.

Compared with a contract length (monthly with a minimum term):

You can offer both on the same plan: the pricing page shows Annual, billed monthly and Annual in installments side by side.

#How it works

#The price

The option's Price is the price of the year ("The price of the whole year. Buyers see the amount of each installment."). Each installment is the price divided by the number of installments, plus the installment interest when the buyer is the one paying it (see below).

#The installments

Card installments goes from Single payment (1×) to Up to 12× (default 12). The buyer chooses how many, up to the maximum. PIX and boleto pay in full, with no installment selector.

#Installment interest

Splitting a card payment carries Memberfy's installment interest: a total percentage of the amount that depends on the number of installments.

The percentage is on the whole amount, not per month: R$ 1,000 in 12 installments carries R$ 60.00 of interest in total. PIX and boleto, which are paid in full, carry no interest.

Who pays the installment interest? is chosen on each option, just like the platform fee:

The calculation always follows the same order: first discounts (coupon), then the platform fee on the amount without interest, and finally the interest on the single-payment amount. The platform fee doesn't change with installments.

The interest also applies to card renewals, add-ons, downsell and Pay now, always at the current table. In the statement, it shows up as the Installment interest line, debited from the sale. When the buyer pays it, the sale's income already includes the interest, and the line only takes it back out: the community receives the same as for a single payment.

The R$ 1,000 example in 12 installments, with the buyer paying the interest: the buyer pays R$ 1,060.00, in 12 installments of R$ 88.33. The platform fee is calculated on R$ 1,000 (R$ 69.90 + R$ 2.49 = R$ 72.39), and the community receives R$ 927.61.

On the pricing page, the annual card shows the installment with the interest already in it ("12× R$ 104.94 on your card (total R$ 1,259.28)"), or "interest-free on your card" when the organization pays. At checkout, each number of installments appears with its amount and the total.

#Renewal

After 12 months:

• Card: the year is charged again to the saved card, in the same number of installments as the purchase (capped at the option's current maximum). The card from the purchase is saved for this: "This card is saved to renew your subscription. You can change it under Billing."
• PIX or boleto: the buyer gets the renewal charge before the due date. See Renewal.

#Cancellation

No refund: whoever cancels keeps access until the end of the paid year, and the subscription doesn't renew. On the Billing page, they see "Access until…". Even if they ask for immediate cancellation, the subscriber keeps access until the end of the year; the owner and admin can end it right away.

#Add-ons

On annual, each add-on costs 12 times the monthly price and goes into the same payment and the same installments.

#What the buyer sees

• On the pricing page, with the toggle on Annual: the amount of each installment, the price of the year ("R$ 1,188.00 a year, renews every 12 months"), "PIX or boleto: R$ 1,188.00 up front" and the savings against monthly ("Save 23%").
• When paying by card: the installment selector, already set to 12×, with the amount of each installment (including interest, when the buyer pays it).
• When paying by PIX or boleto: "Pays the whole year at once. In 12 months, you will get a reminder to renew."
• On the Billing page: "Annual · renews on…".

#Annual billed monthly and annual in installments on the same plan

A plan can have both kinds of "annual":

• Annual, billed monthly: a Monthly option with a 12-month contract length. It charges every month, for at least 12 months.
• Annual in installments: this option. One purchase a year, in up to 12 card installments.

With both on the plan, the pricing page shows the two cards side by side under the Annual toggle, each with its own way to pay. It's useful when part of your audience doesn't have the card limit for the whole year: they take the monthly-billed one, and those who have the limit take the installments.

Memberfy's own catalog does this: Growth · Monthly (R$ 129, no contract), and on annual, R$ 1,188 a year in up to 12 installments.

#Step by step: create an annual option

Role: owner or admin.

1. Monetization › Options › Create billing option.
2. Name: Growth · Annual. In the description, say what the person gains by committing to the year.
3. Payment & Pricing:
   1. Price: the price of the year (R$ 1,188.00).
   2. Billing Interval: Annual in installments.
   3. Card installments: Up to 12× (or fewer).
   4. Payment Methods: card, PIX, boleto.
   5. Who Pays the Fees?: Organization or Buyer.
   6. Who pays the installment interest?: Buyer (the default) or Organization.
4. On the Plans tab, tick the plan (or tick the option later, on the plan itself).
5. Create, and change the status to Active.

The list shows the option as "R$ 1,188.00/year (up to 12×)".

#Examples with numbers

The platform fee is 6.99% + R$ 2.49 per charge, the same for a single payment and for installments, and it's calculated on the amount without interest.

Growth Annual, R$ 1,188, in 12 card installments, buyer pays the interest. Interest of 6.00%: R$ 71.28. The buyer pays R$ 1,259.28, in 12 installments of about R$ 104.94. Fee: R$ 83.04 + R$ 2.49 = R$ 85.53. The community keeps R$ 1,102.47.

The same, with the organization paying the interest. The buyer pays R$ 1,188.00, in 12 installments of R$ 99.00. The community receives R$ 1,102.47 − R$ 71.28 = R$ 1,031.19.

The same, in 6 installments, buyer pays the interest. Interest of 4.29%: R$ 50.97. The buyer pays R$ 1,238.97, in 6 installments of R$ 206.50. The community receives R$ 1,102.47.

The same, by PIX. R$ 1,188.00 in full; the same R$ 1,102.47 for the community.

Compared with 12 months of Growth Monthly (R$ 129). Twelve charges of R$ 129: R$ 1,548 in sales and 12 × (R$ 9.02 + R$ 2.49) = R$ 138.12 in fees; R$ 1,409.88 is left. Annual brings in less per person, but it's received in full and nobody drops off mid-year. The pricing page shows the buyer the savings: Save 23%.

Growth Annual with the Coworking Extension. R$ 1,188 + 12 × R$ 450 = R$ 6,588.00 a year. In 12 installments with the buyer paying the interest (R$ 395.28), that's R$ 6,983.28, in 12 installments of about R$ 581.94. The community keeps R$ 6,125.01.

#Common errors and how to fix them

#Frequently asked questions

Is the interest charged by the payment processor? No. It's Memberfy's installment interest, following the table above, and it's the same for every community that doesn't have its own agreed terms.

Can buyers pay in installments with nothing added? Yes: with Who pays the installment interest? set to Organization, the buyer pays the year split into installments with nothing added, and the interest comes out of the community's amount.

Does someone who paid by PIX have to pay again a year later? Yes: a year later, they get the renewal charge by email. If they save a card before then, the renewal goes to the card.

Can I discount the annual option? The annual discount is built into the price. For an extra discount, use a coupon.

Can an annual subscriber switch to monthly? At the end of the year, they can choose not to renew and subscribe to monthly.

What if the saved card has expired at renewal? The charge is declined and the subscription becomes past due. The member changes the card on the Billing page and pays through Pay now.

Can I offer annual through PIX only? Yes: tick only PIX (and boleto, if you like) under Payment Methods.

#In the API

billingInterval: "YEARLY", price with the price of the year, and maxInstallments (1 to 12). At checkout, installments up to the maximum, card only. See Products and Checkout.

#Related

• Billing options
• Contract length
• Renewal
• Checkout