Manage Bread Pay Transactions

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The below guidance is for merchants on Bread's Classic platform.
For merchants on Bread's 2.0. platform, please refer to our 2.0. documentation HERE.

Transactions Overview

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Read Bread Policies
Please read Guidelines for Offering and Servicing Bread® Financing, Bread® Loan Marketing Guidelines, Bread® Operating Procedure, and all other procedures and guidelines in the merchant portal under "Account Settings."

Once a customer checks out, a unique transaction ID is created. Merchants can manage Bread transactions using any of the following channels:

The Bread Merchant Portal: View the transaction details of each Bread order.
The Bread back-end API: Use the transaction ID to make updates.
A supported third-party platform: View your platform's documentation to see if you can manage your Bread transactions in your platform's admin panel.

If your site is on any of the following platforms, we recommend managing transactions within your OMS as you would non-financed orders, as those actions should flow back to Bread (excluding previous pending transactions). Please click on your platform below to read about how to manage Bread orders within your OMS:

Shopify
Magento 1
Magento 2
Woocommerce
BigCommerce - (action within the Bread App in BigCommerce)

If you are not on the above platforms, or your direct API integration is not set up to sync directly with your OMS, then you can manage your Bread orders directly within your Bread merchant portal:

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Managing Transactions in the Bread Merchant Portal
When managing Bread transactions, note that actions taken within the Bread merchant portal will NOT reflect within your order management system (OMS).

Authorized Transactions

A necessary step in the Bread order management process, authorization indicates that an order is legitimate. Once you authorize an order, Bread guarantees funding upon fulfillment as long as you abide by Bread’s shipping policy and the rules therein.

Authorized orders will expire within 90 days if not fulfilled and settled within that time frame. If you believe that any of your Bread orders will fall outside a 90 day fulfillment time, please reach out to your success point of contact to identify proper next steps.

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Note on Direct API
If you are using Bread’s direct API integration, we recommend issuing an authorize command through Bread’s API immediately at the time of checkout. In the event of an issue, you will be able to immediately let the customer know if the authorization has failed, and you will know not to fulfill the order until the issue has been addressed.

Settled Transactions

Settlement indicates that funds for the order have been captured. Settlement should only occur upon or after fulfillment of the order. Once a transaction is settled, the customer’s loan formally begins and Bread triggers the transfer of funds to the merchant.

Merchants should expect to receive funds within 0-2 business days from settlement. Customers will owe their first payment 30 days from settlement.

Auto Settle (Automatic Payment Capture)
Bread's policy states that if you fulfill 90% of your orders within 3 days, you can enable auto-settle, which automatically settles orders at the time they are placed. Please reach out to your Success point of contact about enabling auto-settle.

Pending Transactions

A pending order indicates that there was a communication error between Bread and your order management system (OMS). Pending orders will register in your Bread merchant portal, but will not flow through to your OMS.

Often times we see pending orders attributed to customers exiting the Bread workflow too quickly after completing their transaction, not leaving enough time for the order to pass through Bread and into your OMS. Repetitive pending orders could be due to a technical issue, and in those instances you should reach out to your Success point of contact for next steps.

Follow these instructions to correctly process a pending order:

Check if this customer was able to successfully place another Authorized or Settled Bread order in your merchant portal. If not, confirm with the customer that they're still looking to place this order.
If the customer still wishes to place the order, log into the Bread Merchant Portal and hit the "Authorize" button. If they do not or it's a duplicate, please "Cancel" the order.
This order did not populate in your OMS, so please add the order into your OMS for your record-keeping.
Upon shipment, remember to log back into the Bread Merchant Portal to manually settle the transaction, which captures the funds.
Please note that any action needed on this order in the future (e.g. refund, partial refund, cancellation) will need to be done in the merchant portal. We recommend making a note on the order in your OMS to this effect.

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Pending transaction expiration
NOTE: Pending transactions expire within 14 days if not authorized within that timeframe. Merchants should receive email notifications when orders are 10 and 5 days from expiration.
If you need to process a pending transaction, always make sure the Bread transaction authorizes successfully before fulfilling the order.

Refunding Transactions

“Refunds” can only happen on transactions that are already settled. If you need to decrease the transaction amount on an authorized or pending transaction, please visit the section below on “Cancelling Orders”.

To refund or partially refund a transaction in your merchant portal, simply hit the “Refund” button on the transaction, enter the amount you wish to refund, and then click the “Refund” button again. You should then see a new adjusted total in the “Amount” column within the transaction tab.

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Refunds are not reversible
NOTE: Refunds and Cancellations cannot be reversed in the Bread system, so please make sure the amount you are refunding or cancelling is accurate

What if I issue a refund by accident?
Due to consumer finance laws, we are unable to reverse a refund or partial refund. That said, you can use the Bread Carts feature within the merchant portal to capture the outstanding amount that was unintentionally refunded to your customer.

What happens to the customer's account when I process a full refund?
If a refund is issued in full, any payments made on the customer's loan will be returned to the customer less any accrued interest.

What happens to the customer's account when I process a partial refund?
If a partial refund is issued to the loan, the customer's monthly installment amount will be adjusted to reflect the new loan remaining balance.

Cancelling Transactions

“Cancellations” can only happen with authorized or pending transactions.

To cancel or partially cancel a transaction in your merchant portal, simply hit the “Cancel” button on the transaction, enter the amount you wish to cancel, and then click the “Cancel” button again. You should then see a new adjusted total in the “Amount” column within the transaction tab.

Down Payment Transactions

Down Payment allows customers to checkout with a cart size up to 2 times the loan amount that they were offered through Bread. The customer will go through Bread’s standard checkout flow, utilizing their entire Bread loan, and will then be prompted to put the remainder (overflow amount) on a debit or credit card.

Bread processes both the loan and the debit/credit card portions and sends both payments to the merchant via 2 ACH transfers.

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Note on Down Payment
Down Payment can only be utilized when the customer is trying to checkout with a cart size greater than their loan amount. Customers cannot choose how much they would like to place on a down payment vs. loan.

SplitPay Transactions

When a SplitPay order is placed, it triggers the following at the point of service:

Customer: Bread charges the customer their first payment; the following 3 payments are charged automatically every two weeks after. *

When a SplitPay order is shipped, you can settle the transaction which triggers the following:

Merchants: Bread transfers the funds for the order, less the SplitPay merchant discount fee. You should receive those funds via ACH deposit within 0-2 business days from the time of settlement. Bread also inherits the credit and fraud risk for SplitPay transactions as long as our fraud rules are followed. For SplitPay refunds, merchants are not refunded SplitPay fees, in-line with industry standards. Merchants are only refunded the order total less fees.*

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Splitpay Expiration Timeline
SplitPay transactions expire after 13 days if they are not settled within that time frame. If you believe that you may fall outside a 13-day fulfillment window, please reach out to your Success point of contact for next steps.

Fraudulent Transactions

We ask our merchants to partner with us on detecting and mitigating fraud as much as possible. In line with that we ask that you do the following:

Fraud Detection System: Merchants must utilize the same fraud protections used for credit cards for Bread orders.

Bread takes on the credit and fraud risk in most scenarios. However, there are a couple of scenarios where Bread will not be liable for the credit and fraud risk:

Customer Application: Customers must complete their own loan applications & acknowledge loan terms. If someone other than the customer themselves (i.e., customer service rep) completes the customer’s application, then Bread will not be liable for the credit and fraud risk.
Shipping Address Change: The shipping address on a Bread order should NEVER be changed post-checkout. If a customer needs to change the shipping address on their existing order, your team should cancel the order and instruct the customer to place their order again with the correct shipping address. If the shipping address is changed post-checkout on a Bread order, the merchant will be liable if the order turns out to be fraudulent.

Bread also vets all orders through our own fraud detection systems. If the system deems an order to be potentially fraudulent:

Someone from our Member Support Team will contact the merchant to place a hold on the order.
The Member Support Team will then reach out to the customer for additional ID verification.
The customer has 5 days to respond to the Member Support Team's Request request.
Depending on the response, the Member Support Team will notify the merchant whether to cancel or fulfill the order.

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Bread Fraudulent Order Policy
If you fulfill orders within the same day or before our Member Support Team notifies you to hold a potentially fraudulent order, Bread will still take on the credit and fraud risk. However, if the order has not yet been delivered, the team may ask that you re-route the order back to the merchant’s facility and Bread will cover the shipping charges associated with that shipment.