A payment plan is a set of terms that is sent directly to a person that owes you money or is initiated by the customer for a retail purchase on your website from the applicable offers. Payment plans can be created manually or based off the terms from a saved offer. Just like offers, payment plans have 4 variables to customize.
customer fee: an optional extra charge that can be added to any payment plan as a separate line item. It may be a percentage of the total amount or a fixed value.
down payment: the amount required to initiate a payment plan and complete a sale. Just like the fee, down payments may be a percentage of the total amount or a fixed value.
term: Also known as payback period, it is the total time until all payments are made and the term of the payment plan is complete. It may be in units of days, weeks, months or years.
payment frequency: How often payments are processed.
If you are using a payment plan for a retail sale, make sure you select the "Require customer to enter a ship to address" checkbox directly under the customer name field on the create payment plan page.
Payment plans can be automated or manual.