Splitit requests authorization from the shopper's card company, reserving the total purchase amount from the shopper's available line of credit. Then, each month, according to the shopper's payment plan, the instalment amount is collected and Splitit requests authorization for the remaining balance.
Here is an example of how the service works for a customer buying a laptop totaling $1200 in 6 instalments of $200 each:
Splitit obtains authorization from the credit card company for the full purchase amount of $1200. This is not a charge on the card; it is simply reserving $1200 from the shopper's line of credit.
The credit card company then charges the shopper $200 for the first payment.
During the second month, Splitit requests authorization for the outstanding purchase amount of $1000, and charges the shopper the second instalment of $200.
This authorization and charge process continues for succeeding months with a single charge of $200 for the sixth and final month.