Payments. Ecommerce. Profits.

How Does Sezzle Work

How Does Sezzle Work?

More than half of shoppers say they are more inclined to purchase from a company like Sezzle that offers interest-free installment plans. Furthermore, when presented with a buy now, pay later (BNPL) option, 73% of customers who utilize it claim they increase their spending.

Whether or not your online store should provide a BNPL service like Sezzle is something to consider if you aren’t already. This article will explain how Sezzle payments work and why they’re useful for your company.

What Is Sezzle?

SezzelSezzle is a service that allows you to make immediate purchases without immediately having to fork over the cash necessary to cover them.

Sezzle’s one-of-a-kind approvals system checks your financials after purchasing to see what flexible repayment options they can provide, just select Sezzle on the checkout page. The standard payment schedule requires a down payment of 25% of the total purchase price (commonly known as the first installment), with the remaining 75% payable in three further payments, spaced out every two weeks. As long as you don’t have missed payments, you may get over 48,700 different brands on the pay-in-four plan without paying any interest.

When you make an order with Sezzle, the company promptly sends the whole purchase price to the merchant, exactly as if you had paid with a credit card. Since this isn’t a layaway plan, the seller will complete your order as soon as possible (within their standard shipping and processing timelines).

How Does Sezzle Work?

During checkout, customers may choose Sezzle as a BNPL payment method. After the sale is finalized, Sezzle pays the merchant in full before the consumer pays Sezzle anything less than 25% of the purchase price. After that, the client pays Sezzle in four manageable payments until the balance is paid off.

Merchants must include Sezzle in their checkout processes if Sezzle approves the business, and customers may only use Sezzle at Sezzle-approved establishments. The Sezzle virtual card can only be used for online transactions; if a client wants to use Sezzle at a physical shop, they will need to use another payment method. Sezzle takes all the credit risk in their transactions. Hence, sellers are not responsible for finalizing the transactions.

Clients must sign up for a Sezzle account by making their account. Once logged in, users will see Sezzle as a payment option during checkout. Sezzle receives the money straight from the customers. To put it another way, the first payment is the equivalent of a quarter of the full price.  After that, you’ll pay another 25% of the purchase price in future installments, due every two weeks. While Sezzle does not charge interest, there may be late penalties for a scheduled payment that is past due. Also, there are merchant fees that Sezzle owns as interest fees. Yet, Sezzle allows you to reschedule payments after your initial payment.

Sezzle connects users to their debit and credit card accounts. Then, on the payment date, the user’s credit card is automatically debited for the payback in equal installments. Also, there is a credit limit depending on the plan you choose.

How to Use Sezzle

  • For Online Stores

ShoppingYour website must have a contact form, items for sale, a functioning checkout system, and delivery and return policies to partner with Sezzle. Get in touch with Sezzle after filling out the application. After being reviewed and accepted, Sezzle will provide you with a setup checklist to help with the implementation. You will also find an API key in your merchant control panel; you may use this when integrating your site. Contacting a web developer or your website’s platform is recommended since the integration procedure may vary depending on the kind of website you have.

When a merchant business bank account is approved, Sezzle provides them with a “setup checklist.” You’ll find a detailed how-to on setting up their services therein. After setting up Sezzle, you’ll integrate widgets into your site so users can take immediate action inside the app. These widgets on your website’s product and shopping cart pages detail the service’s pricing. The most common shopping carts, including Shopify, can use Sezzle’s pre-built widgets. However, you will need to develop your widgets if your website does not run on a pre-built platform or is not one of the pre-built partners. Merchants in this predicament should take heart because Sezzle provides an integration guide.

Next, you’ll add Sezzle payment as a payment method for your online shop by following the steps outlined in the setup checklist. Once done so, you can start accepting payments by linking your company bank account to your Sezzle merchant account and confirming the connection. You may report any difficulties you encounter throughout the installation process to the Sezzle support staff by submitting a request. The best way to find the stores that support Sezzle accounts is through the Sezzle app.

  • For Physical Stores

You need the Sezzle virtual card to purchase Sezzle at physical stores. The customer’s digital wallet may pay with their debit card, just as Apple Pay or Google Pay. However, you cannot use bank accounts to create your Sezzle account. Customers can use these other payment options at the register if your company allows them.

How Does Sezzle Make Money?

By providing customers with a versatile payment option, Sezzle enables businesses to reach a larger audience and attract a larger share of the spending population.

For the most part, Sezzle works with small and medium-sized businesses. Still, the company has maintained relationships with larger direct-to-consumer shops and is growing, thanks to its many collaborations with major chains.

Eighty percent of Sezzle’s clientele are young people. They are often at the start of their credit history and do not have access to conventional credit. That leaves them fewer opportunities to save money, gain financial independence, and establish credit.

You may be asking: Does Sezzle check credit? They will run a soft credit check which does not impact your credit reporting. If you have a Sezzle Up account, they will report your payment history to major credit bureaus.

Sezzle offers a novel approach to resolving these monetary issues for the millennial and Gen Z generations, who are concerned about their credit scores yet stand to benefit from an improved FICO score as they age and increase their frequency of transactions.


To help those who want to make large purchases with interest-free payment plans, Sezzle provides a safe payment solution. Sezzle is a fantastic payment plan for a modest online store. Further, it complies with the payment card industry for maximum data security.

Consider looking into a merchant service provider that provides any other payment method for accepting future payments online if you can’t get beyond the hefty Sezzle costs or your sector isn’t allowed.

To learn more about other payment solutions for eCommerce, checkout out our directory.