Payment Plans

Payment plans offer payers the flexibility to make credit card purchases and pay off the entire purchase amount in installments.

How Does It Work?

The issuer or a third-party provider offers the payment plans. The issuer or other third-party provider will charge the payer in accordance with the conditions of a payment plan, but you will be funded for the total amount of the purchase. You must provide details about the terms and conditions to the payer, and in cases where there are several possibilities, the payer may select the specific conditions, such as the number of installments from these possibilities.

Payment plan terms can include any of the following:

  • Installments:The payment for the purchase is made over a number of installments. For example, a purchase of $1,200 is paid in 12 installments of $100.
  • Deferral Period: The payment for the purchase is deferred for a period. For example, a $1,200 purchase with no payment for six (6) months.
  • Interest: The installment payments for the purchase can have an interest component, or these payments can be interest-free according to the plan.

The Payment Plan can consist of any combination of these terms. Examples include:

  • $1,200 purchase paid in 12 installments with interest,
  • $5,000 purchase interest-free for 12 months with no payments for the first 3 months; and so on.

Payment Plans are common in the Latin American credit card markets due to lower credit limits.


Ensure that your merchant profile is enabled for the Payment Plan service. If not enabled, please contact your service provider. To enable the Payment Plan for the merchant profile, see the Merchant Manager portal and the Merchant Manager User Guide.

Key Benefits

The MasterCard payment plan offers the following key benefits:

  • Multiple plans are available to fulfill the distinct needs of individuals,
  • Increased affordability, and
  • Faster approval.

Supported Payment Plans

The Mastercard Payment Gateway supports the following types of payment plans:

Copyright © 2023 Mastercard