Stripe does offer payment plans, but not as a built-in feature you turn on

Stripe itself does not have a native "payment plans" button. Instead, Stripe provides the infrastructure that lets you or a third-party app build payment plans on top of Stripe's payment processing. If you want to offer installments to your customers, you either integrate a separate tool that connects to Stripe, or you build the logic yourself using Stripe's API.

The distinction matters because it changes what you have to set up, what it costs, and how much control you have over the payment schedule. Stripe handles the individual transactions and the security; you or your integration partner handles the scheduling, reminders, and failed payment recovery.

Key Takeaways

  • Stripe does not offer payment plans as a built-in feature, but it powers the transactions for third-party payment plan apps that connect to Stripe accounts.
  • You can use Stripe's API to build your own payment plan system, or integrate a pre-built app like Sezzle, Affirm, or Klarna that handles installments and connects to Stripe.
  • Each transaction in a payment plan is processed separately through Stripe, so you pay Stripe's standard processing fee (2.9% + 30¢ for most card payments) on each installment, not just the first one.
  • Stripe's payment plan integrations work with Stripe Checkout, Stripe Elements, and custom payment forms, but setup and compatibility depend on which app or method you choose.
  • If a customer's payment fails mid-plan, Stripe will decline the transaction, and you or your app must handle retries and customer communication.

How Stripe connects to payment plan apps

The most common way to offer payment plans through Stripe is to use a third-party app that integrates with your Stripe account. Apps like Sezzle, Affirm, Klarna, and Afterpay all connect directly to Stripe and handle the installment logic on their end. When a customer chooses a payment plan at checkout, the app splits the total into installments, charges the customer's card for each one on schedule, and sends the full amount (minus the app's fee) to your Stripe account.

These integrations typically work through Stripe's API or through your e-commerce platform (Shopify, WooCommerce, BigCommerce, etc.) if you use one. The app handles customer communication, failed payment retries, and dispute resolution. You see the full payment in your Stripe dashboard, but the app takes a cut—usually 2% to 8% of the order total, depending on the provider and the plan length.

Building your own payment plan system with Stripe's API

If you want full control and do not want to pay a third-party app's fee, you can build payment plans directly using Stripe's API. This requires technical work: you set up a schedule in your own system, create a Stripe charge for each installment on the dates you define, and handle retries if a charge fails.

Stripe provides the tools—the Charges API, the Billing API, or the Payment Intents API—but you write the code that decides when to charge, what to do if a charge is declined, and how to notify the customer. This approach gives you the lowest per-transaction cost (you still pay Stripe's standard processing fee on each charge, but no app markup), but it requires a developer and ongoing maintenance. If you go this route, you are also responsible for PCI compliance and for handling disputes and chargebacks yourself.

Processing fees for each installment

Stripe charges its standard processing fee on every transaction, including every installment in a payment plan. For most card payments in the United States, that is 2.9% plus 30 cents per transaction. If a customer's $300 order is split into three $100 payments, Stripe charges you the fee on all three—not just the first one.

This is different from some other payment processors that charge a flat fee per plan or a lower rate on installments. It means your cost to process a payment plan is higher than a single charge, and you need to factor that into whether offering plans makes financial sense for your business. If you use a third-party app, the app's fee is separate from Stripe's fee, so your total cost per installment is even higher.

What happens when an installment payment fails

When a customer's card is declined on an installment due date, Stripe declines the charge and returns an error. If you built the system yourself, you have to decide what to do: retry automatically after a few days, notify the customer and ask them to update their card, or pause the plan. Most third-party apps retry failed charges automatically (usually 2 to 4 times over several days) and notify the customer if all retries fail.

If a payment fails and is not recovered, the customer still owes the remaining installments. You can continue charging the remaining dates, pause the plan, or cancel it. Stripe does not automatically forgive or adjust the schedule; that is your decision. If the customer disputes a charge or files a chargeback, Stripe handles the dispute process, but you may lose the transaction fee and the merchandise if the chargeback is upheld.

Stripe payment plans versus Stripe Billing

Stripe Billing is Stripe's own subscription and recurring billing product. It is not the same as a payment plan. Billing is designed for subscriptions (recurring charges on a fixed schedule), while payment plans are for splitting a one-time purchase into installments. Billing does not split a single order into multiple charges; it charges the same amount repeatedly.

If you want to offer installments on a one-time purchase, you need either a third-party app or a custom API integration. Stripe Billing is the right choice only if you are selling subscriptions or memberships where the customer pays the same amount every month or year.

Compatibility with Stripe Checkout and payment forms

If you use Stripe Checkout (Stripe's hosted payment page), some payment plan apps integrate directly into Checkout, so customers see the installment option at the moment they pay. Others require you to add a separate step before Checkout, where the customer chooses a payment plan, and then Checkout processes the first installment.

If you use Stripe Elements (Stripe's embeddable payment form components) or a custom payment form, integration depends on the app. Some apps provide a drop-in component you add to your form; others require you to handle the plan selection in your code and pass the plan details to the app's API. Check the app's documentation for your specific setup before you commit to it.

Frequently Asked Questions

Can I offer payment plans through Stripe without using a third-party app?

Yes, if you have a developer. You can use Stripe's API to build your own payment plan system, create charges on a schedule, and handle retries. This gives you the lowest cost per transaction but requires ongoing technical work and PCI compliance responsibility.

Do I pay Stripe's fee on every installment or just the first one?

You pay Stripe's processing fee on every installment. For card payments, that is 2.9% plus 30 cents per charge. If you use a third-party app, you also pay the app's fee on top of Stripe's fee.

What payment plan apps work with Stripe?

Sezzle, Affirm, Klarna, Afterpay, and Splitit all integrate with Stripe. Each has different fees, plan lengths, and approval rates. Check their documentation to see if they work with your e-commerce platform and payment form setup.

If a customer's card is declined on an installment, what happens to the rest of the plan?

Stripe declines the charge, and you or your app must decide whether to retry, pause, or cancel the plan. Most third-party apps retry automatically a few times and notify the customer. The customer still owes the remaining installments unless you cancel the plan.

Is Stripe Billing the same as a payment plan?

No. Stripe Billing is for subscriptions (recurring charges). Payment plans split a one-time purchase into installments. For installments, use a third-party app or build your own system with Stripe's API.