Buy Now Pay Later Shopping Catalogs
The mechanism of buy now pay later shopping is very similar to the mechanism of credit cards. When you visit the store, you need to open a credit account with the store. In such cases, all your personal details, such as your identity, credit report, and employment status are checked by the retailer. Often a debit card number is also demanded, for security or collateral purposes. Some stores also take a crossed check that is dated to the next month as an assurance. The process principally differs from enterprise to enterprise. In some cases, the prospectus itself can be ordered home and the ordered items are shipped to your place. This is possible in cases where you are a regular customer of the store and pay through a credit card or you have a certain credit account with the store. Some stores, however, adopt deep scrutiny where in the credit report is analyzed.
There are variations in these catalogs. For example, the catalogs with no credit check are provided to regular customers, who are ready to provide the stores with income details. In some cases, certain stores also take up the risk of issuing catalogs with bad credit. In such cases, a strict income check is implemented by the store.
A considerable number of variants of such catalogs exist. Here are a few examples:
– Deferred billing is the first variant of these shopping catalogs. In case of differed billing, the transaction is completed on the purchase date and a credit is extended. Now, one must bear in mind that there is a credit limit that is imposed on the amount that can be purchased per billing cycle. One billing cycle goes on till the entire settlement is made in full. Some sellers offering differed billing cycles include, Home Shopping Network, Newport News, Spiegel, Palm Beach Jewelry, and Taylor Gifts
– Some stores even offer installment billing. Shops that sell really expensive commodities usually have this provision. Scrutiny in such processes is very strict and is almost as tough as getting a small loan. Bradford Exchange, Gettington, and Fingerhut are some examples where the installment billing is prevalent.
– Websites also tend to give such facilities where the billing cycle is prevalent at future dates. In such cases, unused credit limit on the credit card is restricted against your purchase.
Most of the stores giving such buy now, pay later facilities tend to have a limit for repayment, after which a fine, charge, or a straight interest is levied. In some stores, the interest or fee is levied by default, on all transactions conducted through these catalogs. Of late, many factory or manufacturer-controlled stores have also introduced this concept, Walmart, Apple, Massey’s, and Figi’s are some common examples.