Payment plans make your services more accessible by allowing clients to pay over time through deposits and scheduled installments. You can create payment plans in two ways: attach them to specific services and packages so clients can select a plan at booking, or create custom plans for individual clients to handle unique billing situations like subscriptions or outstanding balances.
In this article:
- Before You Begin: Payment Plan Requirements
- Understanding Payment Plan Types
- Method 1: Adding Payment Plans to Services and Packages
- Method 2: Creating Custom Payment Plans for Individual Clients
- Choosing the Right Payment Plan Type
- Payment Plans vs. Partial Payments: What's the Difference?
- Managing Failed Payments
- What Clients See When Selecting a Payment Plan
- Managing Active Payment Plans
- Next Steps
Before You Begin: Payment Plan Requirements
Payment plans are available on Practice Better's Professional, Plus, and Team subscription plans. To automatically charge cards on file for installment payments, you'll also need Practice Better Payments set up and active.
What You'll Need:
- Practice Better Professional plan or higher
- Practice Better Payments account (for automatic card charging)
- Client's card stored on file (for automatic processing)
Without Practice Better Payments:
You can still create payment plans that send invoices to clients for manual payment at each installment. This works with any payment method, including external processors, cash, or check.
Learn more about Getting Started with Practice Better Payments →
Understanding Payment Plan Types
Payment plans in Practice Better come in different forms depending on your billing needs. Understanding these types will help you choose the right setup for each situation.
Installment Plans
Collect a fixed total amount over a scheduled series of payments. Perfect for packages, programs, or services with a set price that clients pay over time.
- Example: A $600 nutrition program paid in 3 monthly installments of $200
- Tax handling: Tax is calculated on the total balance and applied to each installment
- Duration: Installments will automatically ens when the balance reaches zero
- Bookings page: Clients can choose to pay in full OR use the installment plan
Recurring Payments (Subscriptions & Memberships)
Collect scheduled payments that repeat at regular intervals. These can continue indefinitely, like an ongoing subscription, or end after a set number of payments like a fixed-term membership.
- Ongoing example: $150 monthly membership that continues until cancelled
- Tax handling: Tax is applied to each individual payment
- Duration: Continues indefinitely OR ends after on a specified end date
- Bookings page: Payment plan is the only payment option (no "pay in full" available)
💡 Pro tip: Use the Preview payments feature before finalizing any payment plan to see exactly when charges will occur and what amounts will be collected.
Method 1: Adding Payment Plans to Services and Packages
When you attach payment plans to your services and packages, clients can choose their preferred payment option right at booking time. This approach works beautifully for standardized offerings where you want to give all clients the same payment flexibility.
When to Use This Method:
- You offer packages or programs that many clients purchase
- You want clients to self-select payment options during booking
- You provide consistent pricing and payment terms for a service
- You want to display payment options on your public booking pages
Choosing Your Pricing Model
Before setting up payment plans, you need to select the appropriate pricing model for your service or package. This determines whether payment plans are optional or required.
Go to the Advanced Options tab of your Service, Package, or Program editing page. Locate the Fee & Taxes > Pricing model option.
You'll see two pricing model options:
Fixed Fee (e.g., $150 or 3 payments of $50)
Use this when your service or package has a set total price. Payment plans are optional with this model — you can add them to give clients installment options, but clients will also have the choice to pay in full.
Ongoing Payments (e.g., $50 every month)
Use this for memberships and subscription-based services. Payment plans are required with this model — you must configure a recurring payment schedule, and clients cannot choose to "pay in full" since the payment model is ongoing.
Setting Up Payment Plans with Fixed Fee Pricing
When using the Fixed Fee pricing model, payment plans give clients flexibility while you retain the option for full payment.
- Go to the Advanced Options tab of your Service, Package, or Program editing page. Locate the Fee & Taxes > Pricing model option.
- Ensure your Pricing model is set to Fixed fee.
- Set your total Fee amount.
- Ensure that your Public Bookings Page and/or Client Portal options are set to either Suggest to pay at booking or Require to pay at booking.
📍 Note: Payment plans only appear when clients are prompted to pay at booking. If you select "Display fee (no payment required)," payment plan options won't be shown.
- Scroll down to the Payment Plans section and click Add plan.
Configuring Deposit and Installments:
Once you click Add plan, you can customize the payment structure:
Require a Deposit at Booking (Optional)
Check Require my clients to pay a deposit at booking and enter the deposit amount. Your deposit amount must be less than the total service/package fee (plus applicable taxes).
Requiring a deposit means that an invoice with the remaining balance will automatically be generated for you to process or send to your client at a later date.
Allow Clients to Pay in Installments
Check Allow my clients to pay in installments to enable scheduled payments over time.
Configure the following:
- Installment payment — amount of each installment
- Schedule installments to start after — when the first installment should be charged (e.g., 1 week after booking)
- Repeats — frequency (Daily, Weekly, Monthly)
- Repeat every — interval (e.g., every 1 month, every 2 weeks)
- Trigger payments at — time of day for automatic charges
📍 Note: If a deposit is not required, your client's first installment payment will be processed after the number of weeks (or days/months) you specify in the installment schedule.
Customizing the Payment Plan Description
A Payment plan description will automatically be generated based on your payment plan details. This description is visible to clients as an option for how they'd like to pay.
- Example: "$100 deposit, 4 installments (visible to clients)"
You can customize what clients see by checking Customize payment plan description and entering your own text.
Creating Multiple Payment Options
You can create multiple payment plans for clients to choose from, giving them flexibility in how they pay.
- Example: Offer both a "$75 deposit, 3 installments" plan and a "$50 deposit, 6 installments" plan for the same $300 package
Preview Before Saving
After your payment plan is configured, click Preview payments to see a breakdown of when installment payments will be triggered and the fees collected at each interval.
Once you're satisfied with the payment plan, click Save to apply it to your service or package.
Setting Up Payment Plans with Ongoing Payments Pricing
When using the Ongoing Payments pricing model, you're creating a subscription or membership that clients pay for on a recurring basis. Payment plans are required — there is no "pay in full" option for ongoing services.
- Go to the Advanced Options tab of your Service, Package, or Program editing page. Locate the Fee & Taxes > Pricing model option.
- Ensure your Pricing model is set to Ongoing.
- You'll see a prompt confirming that you need to add at least one ongoing payment plan before saving the service or package. Select Set up to continue.
- Configure your recurring payment plan:
- Recurring payment — amount charged per billing cycle
- Repeats — frequency (Daily, Weekly, Monthly)
- Repeat every — interval (e.g., every 1 month)
- Trigger payments at — time of day for automatic charges
-
Payment plan description — customize how clients see this option
- Select Save when all information has been entered.
Bookings Pages: Ongoing Payments vs. Fixed Fee with Installments
- Fixed fee with payment plan: Clients can choose to pay in full OR use installments
- Ongoing payments: Clients MUST use the recurring payment plan (no pay-in-full option)
Method 2: Creating Custom Payment Plans for Individual Clients
Sometimes you need to create a payment plan that doesn't fit a standard service or package — perhaps to collect an outstanding balance, set up a month-to-month membership for one client, or handle a unique billing arrangement. Custom payment plans give you complete flexibility.
When to Use This Method:
- You need to collect a balance from a previous sale
- A client needs a unique payment arrangement not tied to a service
- You're setting up a one-off subscription or membership
- You want to create installments after a service has already been delivered
Creating a Custom Payment Plan
- Go to [Client Record] > Billing & Payments > Payment Plans.
- Click the Fast Action Button in the bottom-right corner and select Create payment plan.
- If you are a practitioner in a Team plan, select a practitioner with whom this client’s payment plan will be assigned. You can’t update this practitioner association later.
You'll be directed to a page to create your new payment plan automation. Here, you can set up the plan details, payment method, and installment schedule.
Customize Payment Plan Details
Payment plan name and description
By default, the payment plan name will be populated with “[Client Name] - Payment Plan” which can be customized to be more detailed (ie. “[Client Name] - Ongoing Membership Starting Dec. 2025”).
Optionally add a detailed description for you and your client to understand the payment plan agreement (ie. “Premier Client Membership including two sessions each month.”)
Clients will see the name and description of their payment plan in their client portal and on invoice receipts.
How Would You Like to Process Payments?
Choose how Practice Better should handle payment collection for this plan.
Send invoices to client for payment
Use this option if you don't have a credit card on file or if you'd like your client to pay at their convenience. An invoice will be created and automatically sent to your client at each installment date.
Charge stored payment method
Automatically charge the client's saved credit card on the scheduled installment dates. This requires that you have a valid card stored in the client's billing information.
Charge card if available
Attempt to charge a card on file if available; otherwise, send an invoice for manual payment.
📍 Note: If no card is currently available, you'll see the option to Add a card below this list of payment processing methods. Learn more about Managing Client Billing Information →
Billing Mode (Team plan only)
Select the desired Billing Mode for processing payments in this payment plan.
This defaults to the Billing Mode selected in your global settings, but can be customized.
Learn more about Managed Billing →
Link Payment Plan to Product
If your client already has a Service, Package, or Program booked for them that hasn’t been paid for, you can associate it with the payment plan you create.
Selecting Your Installment Payment Type
Before setting your fees and payment schedule, you'll need to decide what type of custom plan you're creating. The system offers three distinct options.
Option 1: Collect Installments for an Existing Balance
Use this when you need to split a known total amount into scheduled payments. Tax is calculated on the starting balance, not charged per installment, and billed as a separate installment.
When to use:
- Collecting payment for services already delivered
- Breaking up a large invoice into manageable chunks
- Client owes a specific total amount that needs to be paid off
Configuration:
- Starting balance — total amount owed (includes taxes)
- Installment payment — amount charged per installment
- Tax — optionally add tax information (tax is calculated on the starting balance, not charged per installment)
- Schedule installments to start after — when first payment should occur
- Repeats — frequency (Weekly, Monthly, etc.)
- Repeat every — interval (e.g., every 1 month, every 2 weeks)
- Trigger payments at — time of day for charges
💡 Pro tip: The system calculates how many installments are needed based on your starting balance and installment amount. Always use Preview payments to confirm the schedule matches your expectations.
Option 2: Collect Ongoing Installments
Use this for ongoing recurring payments such as monthly subscriptions where there's no predetermined end date. Taxes are applied to each individual payment.
When to use:
- Month-to-month memberships
- Ongoing coaching retainers
- Subscriptions that continue until the client cancels
Configuration:
- Installment payment — amount charged per billing cycle (taxes applied to each payment)
- Tax — tax applied to each individual installment payment
- Schedule installments to start after — when first payment should occur
- Repeats — frequency (Weekly, Monthly, etc.)
- Repeat every — interval
- Trigger payments at — time of day for charges
💡 Pro tip: Ongoing installments continue indefinitely until you pause or cancel the plan, or add an end date in the setup.
Option 3: Collect a Fixed Number of Installments
Use this for a predetermined number of recurring payments. Like ongoing installments, taxes are applied to each individual payment.
When to use:
- 6-month or 12-month subscription commitments
- Fixed-term memberships
- Programs with a set number of payments but no single "total balance"
Configuration:
- Installment payment — amount charged per billing cycle (taxes applied to each payment)
- Tax — tax applied to each individual installment payment
- Number of installments — how many total payments will be collected
- Schedule installments to start after — when first payment should occur
- Repeats — frequency (Weekly, Monthly, etc.)
- Repeat every — interval
- Trigger payments at — time of day for charges
💡 Pro tip: This option works well when clients commit to a specific program duration. Unlike "existing balance" installments, this charges tax per payment rather than calculating it once on a total.
Previewing and Finalizing Your Custom Plan
Always click Preview payments before finalizing to see a breakdown of when installment payments will be triggered and the fees to be collected at these intervals.
Once you're happy with the payment plan, click the Create button in the top right corner of the page to confirm and schedule your payments.
After Creation:
You'll be directed to the payment plan details page, where you can view all installment payments and their associated invoices. You'll also be able to process upcoming payments, skip installments, or make adjustments as needed.
Learn more about Managing Active Payment Plans →
📍 Note: Coupon discounts can only be applied at the booking page when clients select the "Pay in full" option. Coupons can't be applied to payment plans. Learn more about Incentivizing Clients to Pay in Full →
Choosing the Right Payment Plan Type
Understanding the difference between these payment structures helps you select the right configuration for each situation.
| Feature | Installments for Existing Balance | Ongoing Installments | Fixed Number of Installments |
| Best for | Splitting a known total amount | Open-ended subscriptions | Term-based memberships |
| Tax handling | Included in total balance | Applied per payment | Applied per payment |
| End date | When balance reaches $0 | Continues indefinitely | After X payments |
| Requires total balance? | Yes (Starting balance field) | No | No |
| Example | $600 total in 3 payments of $200 | $150/month ongoing | 12 payments of $100 |
| Available for | Custom plans OR Fixed fee services | Custom plans OR Ongoing payment services | Custom plans only |
💡 Pro tip: If you're unsure which type to use, ask yourself: "Do I know the exact total amount owed?" (use installments for existing balance) or "Am I charging a recurring fee?" (use ongoing or fixed number of installments).
Payment Plans vs. Partial Payments: What's the Difference?
Practice Better offers two ways for clients to pay invoices in portions, and understanding the difference helps you choose the right tool for each situation.
Payment Plans (Automated Installments):
- Scheduled automatic charges on specific dates
- Requires card on file (for automatic processing)
- System manages the payment schedule
- Best for: packages, programs, memberships
Partial Payments (Single Invoice):
- A single invoice can be split into two payments
- No scheduled automatic charging
- Client pays manually when ready
- Best for: one-off invoices, flexible arrangements
Learn more about Collecting Partial Payments for Invoices →
Managing Failed Payments
If an automatic installment payment fails — due to insufficient funds, expired card, or other card issues — Practice Better notifies both you and your client to take action.
What Happens When a Payment Fails:
- You receive an email notification about the failed payment.
- The client receives an email prompting them to update their payment information.
Your Options After a Failed Payment:
- Contact the client to update their card information
- Manually process the payment once the card is updated
- Skip the installment if you've made alternative arrangements
Learn more about Managing Active Payment Plans →
What Clients See When Selecting a Payment Plan
When payment plans are attached to services or packages, clients see their options clearly presented during the booking or purchase process.
For Fixed Fee Services/Packages:
Clients see multiple payment options and can choose what works best for them:
- Pay in full — one-time payment for the total amount
- Payment plan option(s) — any installment plans you've created (e.g., "$100 deposit, 4 installments")
- Pay later — defer payment (only if "Suggest to pay at booking" is enabled)
For Ongoing Payment Services/Packages:
Clients only see the recurring payment plan option since there's no total amount to pay in full:
- Recurring payment plan options — the available options for subscription or membership payment schedule you've configured (e.g., "$150 every month")
Clients select the option that works best for their budget and preferences before completing their booking.
Managing Active Payment Plans
Once a payment plan is created — whether through a service/package or as a custom plan — you have full control to manage, modify, or cancel it as needed.
Learn more about Managing Active Payment Plans →
Next Steps
Payment plans are a powerful tool for growing your practice by making services accessible and creating predictable revenue. Here are some related topics to explore:
- Managing Active Payment Plans — modify active plans, process early payments, or pause subscriptions →
- Managing Client Billing Information — ensure cards are stored securely for automated payments →
- Incentivize Clients to Pay in Full Instead of Selecting a Payment Plan — use coupons to encourage full payment →
Need help deciding which payment plan type is right for a specific situation? Our support team is here to guide you through the options and help you create the perfect billing structure for your practice!