MSE News: Shoppers to be able to split credit card payments at the till – but you...

Former_MSE_Lucinda

Card payment machines in shops will give credit card-holders the option of paying for items in instalments rather than with a lump sum, once the Mastercard Instalments scheme is launched next year...

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'Shoppers to be able to split credit card payments at the till – but you may end up paying over the odds'

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Herbalus

Ludicrous, and irresponsible.

Ectophile

This scheme was obviously intended to drip-feed purchases into people's accounts, so they don't realise how much they have spent until they are up to their eyeballs in debt.

I certainly won't be opting in.

eset12345

what's the point? if someone wants to split in to instalments then they can just partially pay off their statement, and just accrue the usual interest.

Pound

How is this different between paying for it on a credit card and then paying that off in installments? I bet when the screen gives you the option, it won't be clear at all that the sum of the installments is greater than the total amount.

redux

If certain retailers want to use the scheme for promotional zero interest instalment deals on relatively high ticket items, then it might make some sense, but otherwise I agree with the posts above, why bother.

Pincher

Costco Wembley has a 3 carat ring that is £90,000.
My cashback Amex only has a credit limit of £8,000.

If Costco took MasterCard, and I had a credit limit of £8,000, does this mean

1. I can pay for £90,000, and split the repayment into 11 x £8,000 + 1 x £2,000

OR

2. Buy a crummy one carat ring at £8,000 , and split the repayment 8 x £1,000 ?



Surely what you would do is to get a 0% Balance Transfer deal, and simply move the £8,000 to the 0% BT deal?

Sadly, this thing is obviously targeting the poor sods who can't get the 0% deals.

jamesd

Mastercard installments is potentially very interesting and useful depending on the fee and interest rate offered, whether it's part of the card limit (apparently not) and how card payments are applied compared to balances at other interest rates.

If cost is similar to the 16.9% offered by Amazon Pay Monthly it won't be very interesting except for those who have need rather than desire for credit at that cost. Yet at least one place outside the UK plans to use a 0% interest rate (no mention of any fee though).

Since you can pick how many moths are to be used there's also a fair degree of flexibility there. It might well be considerably cheaper than store credit schemes.

Looks as though it might only be offered in person in physical shops initially so it won't be applicable to any significant amount of my own spending, which is almost all via online stores.

SnowTiger

A solution looking for a problem?

Barclaycard already offers a similar feature, but it's by invitation only and for purchases above £495. Punters pay a fee and can spread payments over six to twenty-four months.

eset12345

redux wrote: »

If certain retailers want to use the scheme for promotional zero interest instalment deals on relatively high ticket items, then it might make some sense, but otherwise I agree with the posts above, why bother.

as if standard 0% rates will ever apply.