How does Sezzle work for merchants?

Panna Kemenes

Sezzle is a buy-now-pay-later (BNPL) service that offers businesses and customers payment plans. The Sezzle integration adds payment options for shoppers at the checkout stage.

These services offer an alternative for shoppers who prefer to spread the cost of a purchase. This guide will explore Sezzle, and what makes it unique for merchants.

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What is Sezzle for merchants?

While it might seem like Sezzle is for shoppers, merchants can also benefit from the BNPL service.

Sezzle allows eCommerce businesses to accept payments through interest-free installment plans.

How does Sezzle work for merchants?

To partner with Sezzle and offer payment plans to your customers, you’ll need to open an account.

Once Sezzle approves your account, shoppers will be able to pay for your goods via your online store, a mobile app, or any other interface.

How does Sezzle work for the retailer?

When your account is live, you can integrate Sezzle with your POS (point of sale) device, website, or application.

After a customer selects a Sezzle payment plan for one of your products, Sezzle will pay the merchant the price of the product in full, minus its fees.

The funds should arrive in your account within 1-7 business days from the moment Sezzle is aware of the sale. The payment date is also subject to the payout schedule you arrange with Sezzle.

📝 Read on to find:

What are the Sezzle fees for merchants?

If you’re curious about using Sezzle for your business, you might be wondering:

How much does Sezzle charge merchants?

One of the ways the service makes money is by charging fees to Sezzle merchants for each transaction. The payment processing fee is 6% plus $0.30 per transaction

The Sezzle fees for merchants will be in the currency of the sale unless you have an alternative agreement.

If you refund a payment, Sezzle will hold onto the original payment processing fee but there won’t be any extra charges applied.

It’s worth considering these merchant fees before you sign up for the service.

How to add Sezzle to your website

To set up Sezzle on your website, it’s a simple case of applying for a merchant account and waiting for approval.

Then, you’ll receive a ‘Setup Checklist’ via email which will outline what you need to do to connect Sezzle to your website. The step-by-step guide is available in your Sezzle account thereafter, so you can check it whenever you need help.

Sezzle will also allow you to test the integration if you currently use one of the following eCommerce providers:

  • WooCommerce
  • Magento
  • OpenCart
  • CommerceCloud
  • A custom eCommerce platform
How long does Sezzle take to approve merchants?
It takes around 4-6 business days for Sezzle to approve new merchant accounts.³

How do I add Sezzle to Shopify?

If you currently use Shopify, you can integrate a Sezzle gateway by taking the following course of action:

  1. Install Sezzle in your Shopify account
  2. Go to ‘settings’ in Shopify, and select ‘payments’
  3. Find ‘Alternative payments methods’ and then click 'Choose alternative payment' before selecting Sezzle
  4. Choose your keys from the ‘API keys’ setting, and then choose your preferred payment methods

If you want to add a checkout button once you've installed Sezzle, here’s what you’ll need to do:

  1. Navigate to your apps in Shopify, and select ‘add or remove widgets’ under the Sezzle app
  2. Select ‘add checkout button’

How do companies like Sezzle make money?

Sezzle, as one of many BNPL services, makes money from both the businesses and customers it interacts with. Generally, these companies will charge a fixed percentage rate and a processing fee to merchants.

Here are some examples of what the most popular BNPL services charge:

Sezzle - 6% payment processing fee plus $0.30 per transaction.²

Afterpay - variable commission rate of 4.6% plus a flat fee of $0.30 per transaction.⁴

Klarna - variable percentage fee of 3.29-5.99% plus $0.30 per transaction.⁵

These fees go to the companies and account for a large percentage of the money they make.

🔍 Read more about Afterpay and Klarna for business.

Should you use Sezzle as a merchant?

BNPL services like Sezzle can help merchants in more ways than one. If you’re looking to boost awareness or convert more prospects into buyers, then offering Sezzle could be an option worth considering.

🔍 Did you know?
The rise of BNPL services correlates with the spread of the pandemic. 15% of shoppers use them more since the COVID-19 outbreak.¹

Sezzle offers interest-free plans, too, which can ease shoppers’ concerns over paying a premium for a loan. As such, you could secure more sales with a service like Sezzle.

Sezzle might not be the best fit for your business if you’re concerned that late fees will deter customers from giving you repeat business. You’ll also want to make sure that the transaction fee doesn’t affect your bottom line too much.

You can also use Sezzle to branch out overseas as the service allows you to accept payments in different currencies.

Save money when you receive Sezzle payments with Wise

You can connect a Wise Business account to receive overseas payments, without hefty conversion and holding fees.

Open up to ten major currency accounts all in one place with Wise to receive payments like a local. For example, you can receive GBP to a UK account with ease, even as a US business. You can then hold, spend, and convert currencies at the real mid-market rate.

Register with Wise Business for free 🚀

Take the hassle (and high costs!) out of receiving payments from overseas customers.


  1. New Study Shows Growing Opportunity in Buy Now Pay Later - Sezzle
  2. Sezzle Legal
  3. How long does it take to get approved for a merchant account?
  4. What Is Afterpay & How Does It Works For Business?
  5. Klarna for Business

All sources checked May 12, 2022.

Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.

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