Split Tender Huong Vu September 14, 2023

Split Tender

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 a 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 preferred payment methods. 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: This is the payment that is made and completed in physical stores. The customer can pay with different payment methods at the checkout counter. The cashier will process each payment method separately and give the customer a receipt. Offline split tender payments are common when the customer does not have enough cash or credit limit to pay for the entire purchase.
  • Online split tender payment: With the shift to the online environment and omnichannel experience, online transactions are also evolving to accommodate customers. Online split tender payments allow customers to use multiple payment methods for a single online order. A POS system may be needed to equip this activity to perform split tenders in online environments. The POS solution will enable customers to select different payment methods and split the order amount accordingly. Online split tender payments are convenient for customers using different payment sources or taking advantage of different rewards or discounts.

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 using credit/ debit cards. This is because gift and prepaid cards have real limits, thus cannot be overdrawn.

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Why do people use split tender payments?

Split payment allows customers to use two or more different forms of payment in a single transaction. For example, customers can pay with credit cards, debit cards, gift cards, cash, or other methods. This payment has various benefits for both customers and businesses.

For customers, split payments can help them avoid exceeding their credit card limit or their daily spending limit on their debit cards. This can prevent them from paying extra fees or interest charges. Split payment can also help customers use up their gift or prepaid cards in a specific store, especially if they have a small balance left on them. Moreover, it enables customers to share the bill with their friends or family when they go out together.

For businesses, split payment should help them attract more customers and increase their sales. By offering it as an option, businesses can show that they care about their customers’ convenience and preferences. Split payment can also help firms expand their e-commerce market by allowing online shoppers to use multiple payment methods. The more customers’ demands a business can fulfill, the more trust and loyalty from customers that the business can gain.You can’t deny the split tender meaning for people in retail POS and e-commerce POS. It caters to customers’ needs and desires in purchasing and creates a seamless and consistent experience across channels. Therefore, businesses should ensure that their POS systems support split payments and provide their customers a smooth and secure transaction process.