Split Tender

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What is split tender?

Split tender is a multi-method payment for one single transaction. It involves more than one form of payment, such as the combination of debit/credit cards, gift cards, cash, etc.

Split tender payments are often used in brick-and-mortar stores, where customers can pay the bill by the combination of payment methods that are preferred by them. For example, a customer going to a fashion store may want to combine their gift cards and the amount of cash they have left.

Types of split ender payments

  • Offline split tender payment: The payment that is made and completed in stores.
  • Online split tender payment: With the shift to the online environment and omnichannel experience, online transactions are also evolving to accommodate customers. In order to perform split tenders in online environments, a POS system may be needed to equip this activity.

Although online split tenders work the same as in physical stores, the combination of 2 credit cards is not accepted. Normally, credit card companies favor gift or prepaid cards in addition to the use of credit/ debit cards. This is because gift and prepaid cards have real limits, thus cannot be overdrawn. 

Why do people use split tender payments?

Split payment is used as a way for customers to avoid going above their credit card limit or those with a daily spending limit for their debit cards. When a single payment is more than the amount that is left in the credit/debit card, customers may want to opt for split tenders to divide that amount into different cards. Another benefit of split tenders is that customers can make use of their gift or prepaid cards in a particular store.

For businesses, split tenders help them to nurture their potential in e-commerce markets. The more customers’ demands a business can fulfill, the more trust from customers that business can gain.


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