# Instalments Installments allow consumers to pay for a purchase in parts. An installment typically covers one purchase/order and multiple payments over time. Installments differ from recurring payments because unlike recurring payments it is not a single purchase, but an ongoing service like bills or subscriptions. In an installment transaction, a single transaction is sent to the issuer, which in turn splits the total amount into several monthly payments. ## Installment Types There are two installment types: * issuer-funded (credit installments) * merchant-funded (regular installments). ### Issuer-funded (credit instalments) * The bank issuing the card to the consumer offers the installments to the consumer * The bank charges the consumer's account in the agreed number of installments and charges an interest * The merchant receives the total purchase amount at once * The issuer takes the risk ### Merchant-funded * The merchant and consumer agree on the number of installments, free of interest fees * The bank charges the consumer's account according to the installment plan between the consumer and the merchant * Merchants receive payments as the bank charges the consumer's account * The merchant takes the risk --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.verifone.com/online-payments/checkout/instalments.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.