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Merchant Help

 

Affirm Merchant Help

Multiple Financing Programs

 

Overview

Multiple Financing Programs (MFPs) enable you to selectively offer a specific custom financing program to consumers based on product or cart attributes that are defined in your eCommerce or marketing platform. 

Please note:
Merchants are responsible for the custom code that leverages Affirm's MFP functionality. Affirm does not provide any generic tools or platform-specific extensions to use MFPs. 

Financing programs determine:
  • Interest rate (APR) range
    • APR, or Annual Percentage Rate, is the cost of credit (i.e., interest) as a yearly rate.
  • Range of loan term lengths
    • The loan term length is the number of months that a customer has to repay the loan.
  • Merchant fee (MDR)
    • The merchant fee is a percentage of the purchase price that gets deducted from the settlements made to the merchant. 

Creating Financing Programs

Financing programs are built by the Affirm Client Success team, and are specific to each merchant. If you'd like to start offering custom financing programs, please reach out to the Client Success team at merchanthelp@affirm.com. Not all merchants qualify for custom financing programs.

Basis for Financing Programs

The terms and conditions for any given custom financing program are based on various consumer protection laws as well as the capabilities of your eCommerce platform, marketing tools, and/or development team. When determining what financing programs may be offered, please follow the guidelines below. 

Financing programs can be based on:

  • Product/cart attribute
    • Cart amount
    • Product price
    • Product SKU
    • Product brand
       
  • Time/date
    • Weekend offers
    • Holiday offers
    • Date range
    • Time of day

Financing programs cannot be based on any other term or condition at this time.

If you have any questions about offering financing programs, please contact merchanthelp@affirm.com for guidance.

Logic for Selecting a Financing Program

The logic for which financing program gets applied to a customer's cart is entirely determined by the merchant. The following examples are meant to illustrate one possible implementation of these rules. Assumptions are made regarding the priority and application of rules that merchants do not have to adhere to.

Generally speaking, the logic for selecting a financing program should be setup to always offer the customer the best financing possible:

Lower interest > Longer terms > Increased approvals

Additionally, if terms are similarly advantageous, the basis for custom financing programs should be prioritized by specificity:

Product/SKU > Brand/manufacturer > Product category > Cart size > Time/date

 

Example 1

Active rules:

  • Financing program A: All Sony TVs qualify for 0% interest
  • Financing program B: President's Day sale with 18-month loan terms

Purchase 1:

  • Sony LED TV
  • Denon AV Receiever

Financing program B is selected since the Denon Receiever disqualifies them for the Sony-specific financing program (program A)

Purchase 2:

  • Sony LED TV

Financing program A is selected since the only item purchased is a qualifying product, and Financing program A (0% interest) may be seen as preferrable to Financing program B (18-month term).

Example 2

Active rules:

  • Financing program A: All Sony TVs qualify for 0% interest
  • Financing program B: All Vizio TVs qualify for 18-month terms

Purchase 1:

  • Sony LED TV
  • Vizio LED TV

No financing program is selected since the cart doesn't exclusively have either brand

Example 3

Active rules:

  • Financing program A: Purchases over $2000 qualify for 18-month terms
  • Financing program B: Sony TVs qualify for 0% interest
  • Financing program C: President's Day increased approvals (regular terms)

Purchase 1:

  • Sony LED TV
  • Denon AV Receiver
  • Total of $2300

Financing program A is selected since the Denon Receiver disqualifies it for the Brand-specific 0% interest, and program A's 18-month term is preferred to program C's regular terms

Compliance with Consumer Protection Laws and Requirements

MFPs must comply with applicable federal, state, and local fair lending laws, regulations, and regulatory guidance. The purpose of fair lending standards is to ensure that individuals seeking financing are treated fairly and consistently. Generally, financing options must be offered to all qualified consumers without discrimination on the basis of race, color, religion, national origin, sex, marital status, age (provided that the applicant has the capacity to enter into a binding contract), the applicant’s receipt of income through a public assistance program, the applicant’s good faith exercise of a right under the federal Consumer Credit Protection Act, military status, sexual orientation, and other factors that may be prohibited under applicable state and local requirements. For example, merchants whose MFPs exclusively provide promotional pricing on items that appeal more to female customers than male customers may be found to be in non-compliance with fair lending requirements.

MFPs must also comply with the prohibitions in Title X of the Dodd-Frank Act and Section 5 of the Federal Trade Commission Act relating to unfair, deceptive, and abusive acts or practices. In essence, terms and conditions of financing programs must be clearly and accurately communicated to consumers.

Affirm reserves the right to request modifications to a financing program if it determines that the program may run afoul with applicable consumer protection requirements. Violating any applicable consumer protection requirement is a breach of your agreement with Affirm and can be grounds for termination as an Affirm merchant (and may result in legal action).
 

Implementation

Define the financing program

To start using your custom financing programs on your site, you will populate the checkout object with the name of the financing program that you'd like to use. The financing program is defined within the checkout object that's used to initiate the Affirm checkout. You can define this variable using Javascript, and select the appropriate financing program based on any of the approved triggers listed above.

affirm.checkout({
    "financing_program":"custom_financing_program",
});
financing_program
optional string. A unique financing program name that is provided to you by Affirm. If you have a custom financing program available, you can enter the name of it in this field. If the program is not available or the name is not valid, your default financing program will be used.

Reporting

In your settlement reports, we will include the financing program name that was active for a given transaction.

Marketing

Custom promotional messaging must be utilized in conjunction with multiple financing programs, in order to present accurate loan terms to customers.

  • If a custom financing program is available, the customer should see those custom terms/rates reflected in all of your Affirm on-site marketing.
  • The promotional messaging components that Affirm provides can all be customized.
  • In addition to the financing_program name that you'll use at checkout, Affirm will provide a promo_id that's used to customize your promotional messaging
  • Financing_program and promo_id should be mapped to one another, so that customers only see custom promotional messaging if the custom financing program is also available (and vice-versa).

Details on implementing custom promotional messaging can be found here.