While setting up a payment condition, you can choose to configure installments with interests. Then, you have to decide if you want to use simple or compound interests.

Before choosing the interest type, you must understand the difference between the two of them. The simple interest is levied on the total price of the order. On the other hand, the compound interest is based both on the total value and the amount of interest accumulated between installments.

While compound interests are the most common in Brazil, countries such as Argentina prefer the use of simple interests.

1. In the VTEX Admin, go to Store Settings > Payment > Settings, or type Settings in the search bar at the top of the page.
2. You'll be redirected to the settings page, where you must click on the Payment Conditions tab.
3. Choose the payment condition you want to edit or configure a new one.
4. In the payment condition setup page, click on the In installments option (on the In cash or in installments? module).
5. Fill in the number of installments you want to offer (unless this has already been done), then click on the Set installment taxes button. By doing this, a detailed list will show the installments, with dedicated fields to edit the interest rate.
6. At the end of the list, a message informs the type of interest used. Compound interests are set by default, so you need to click on Change if you want to use simple interests.
7. A select field will appear, and you'll be able to choose between simple or compound interests.
8. After finishing the other configurations (like special conditions, for example), click on the Save button.