Device financing
Device financing rules and customer journey (Terrace Finance; Klarna in progress).
Overview
Device financing enables customers to pay for devices in installments while completing the plan purchase separately.
At a glance
Available only for eligible devices with a total device cost ≥ $200
Supports split payment by product type:
Plan charges → card
Device → financing
Powered through a financing partner with a hosted approval experience
Available across new and existing customer journeys, including flows that may also include trade-in or device protection
Where it appears
Check out, for eligible devices only
Payment selection stage
Eligibility includes:
Device price
Shipping
Applicable taxes
Entry conditions
Minimum value
≥ $200 for device + shipping + tax
Payment structure
Plan paid by card, device paid through financing
Availability
Eligible SKUs only
User types
New and existing users
Order-level payment method rules
The platform supports split payment between the plan and the device.
It does not support mixed payment methods across multiple devices in the same order.
If a customer buys multiple devices in one order, all devices must use the same payment method:
All financed, or
All purchased outright
Customers cannot finance some devices and pay upfront for others in the same order.
This is the intended behavior.
Financing experience
Within the hosted financing experience, the customer provides:
Email verification through OTP
Address details
SSN
Occupation and income
The financing partner performs a soft credit check and presents available offers.
The customer then completes:
Initial payment by card, if applicable
Bank details for installments
E-sign agreement
If the customer abandons or fails this step, eCommerce FAQs covers what happens to the plan charge and the rest of the order.
Approval and order handling
Order confirmation occurs only after financing approval.
Once approved:
order moves to processing
order is visible in My Orders
financing is activated per partner terms
If the same checkout also included trade-in, trade-in credits still post on their own timeline after inspection.
Return cancellation after financing approval
If a financed device is returned within the allowed return window and the order is canceled:
Reach raises a cancellation request with Terrace Finance.
Terrace Finance cancels the financing offer.
If Terrace Finance already collected an initial payment, that payment is refunded directly to the customer.
Reach and the client brand do not manually refund financed installments, first EMI, or down payments.
Settlement corrections and deposit reconciliation are handled between Reach and Terrace Finance only.
Money flow
Outright purchase
Customer pays the full amount by card.
Payment flows through the brand’s payment gateway.
The platform settles with the device supplier.
Margin and service fees are handled per agreement.
Financed purchase
The financing partner pays the full device value upfront.
The platform settles with the device supplier.
The customer repays the financing partner in installments.
Margin and service fees are handled per agreement.
Protection fees are not rolled into financing. For that billing model, see Device Protection Overview.
Subsidy model
Where device pricing is reduced:
Customer pays a lower upfront amount
Subsidy difference is funded separately
Subsidy is tracked per order and reconciled periodically
Example
Device price: $800
Customer pays: $600
Subsidy: $200
Ownership model
Ownership remains with the financing partner during the repayment term.
Ownership transfers to the customer only after:
Full repayment
If early payoff is supported:
Ownership transfers immediately after payoff settlement
Fulfillment and visibility
Device fulfillment follows the standard order flow after approval.
Orders are visible in:
My Orders
Agent tools in Reach Central
For the wider multi-product order behavior after approval or decline, see eCommerce FAQs.
Launch steps
Last updated