If I use the unfunded model, what happens if a customer defaults on the payment?

In this case, if the card expires or is canceled, the customer has a 7 day grace period to update their information in their portal.  If it isn’t resolved within the 7 days then the remaining amount owed (pre-authorization remaining) is then charged.

Splitit eliminates the credit risk for the merchant. We guarantee the full amount of the purchase so there is no risk that the merchant will not receive the payment.