Hey Guys,
Anyone here who can tell me about how buy now pay later works? Which is the best company to sign up to? I am looking to buy a vacuum cleaner from Godfreys and they have a tie-up with a company called Oxipay.
Oxipay claims to have no fees and interest. Sounds a bit too good to be true.
Any help will be appreciated!
Afterpay charges the merchant 6% fee excl GST + the merchant fee is non-refundable if the customer returns the item for a refund.
Where did you find this out?
I googled and found this information.
Thanks for providing this info. I always (wrongly) thought that all of these charge a fee of any type even if the consumer is paying in time.
They are bottom feeders similar to pay day lenders without the protection given to at risk consumers.
It is good if you can pay it off straight away and incur no fees - but really bad if you can't.
Targets at risk consumers who can spiral into never ending debt.
risk consumers.
In other words an overspender that gets themselves into debts and blame other people for it.
Plenty of people are gullible and have low financial literacy. Spreading the word that these deals are risky is the best way to crimp their business model.
I've been knocking Harvey Norman 12 month interest free for years, and see it is now up to 48 months and more popular than ever…
It is good if you can pay it off straight away and incur no fees - but really bad if you can't.
Targets at risk consumers who can spiral into never ending debt.
What you've just described is a credit card, not a pay-day lender.
They can be useful if used with discipline, but ultimately they are designed as a way for businesses to part people with more money than they would have otherwise and/or make money for the lender via fees.
I frequently use ZipPay and Afterpay. Never had any issues. The services are useful if used responsibly. I'm keen to see more merchants partner with either service.
Given that these providers charge the retailer a fee, has anyone used this as a bargaining point to get a discount off the product for a cash purchase?
Think thats where the Pay Less, Pay Cash thing comes into it. Ive used it before and ive had sales guys say they would give a better deal but we are doing the interest free stuff.
Big W has AfterPay but if you choose not use it you can pay with 5% off Wish gift cards.
what's the difference between these and credit cards?
these dont have interest for 3-6mths, cc does after 55 days
Read my comment below about with regards to missed payment.
if you don't have the money you shouldn't be buying
In general terms I agree, but if buyers with lower incomes can manage their finances to pay off the debt within the terms of the agreement, these financiers can serve a purpose for good.
There are some findings from 'micro-financing' models around the world where the borrowers generally have very good repayment histories, but that is not always the case obviously, particularly where we feel we have an entitlement to these 'luxury' goods.
Having said that, the penalties for non-compliance can be crippling.
They are interest free and no fees, they charge godfreys. And godfreys agree to it in hope of extra sales that otherwise wouldn’t eventuate.
Personally I wouldn’t use them, rather use a credit card. Credit card are more (can’t believe I’m using this word) generous if you miss a payment. CC will charge you interest, oxipay and others charge (massive) fees . So stick with your 55 interest free credit card I say.
It's essentially a means of generating more sales which otherwise would not have eventuated, due to the buyer not having available funds. Well, that and gross retention for the retailer, because if you're taking up the finance offer you're not really in a position to negotiate on price.
These target the people who should avoid these services in the first place.
They really should have a non-ZipPay/ZipMoney/Afterpay price as oppose to an all-encompassing price that covers these fees. Why should I be coughing up the 4-6.6% in fees when I don't use any of those services?
Do you pay cash for everything you buy?
Cash or card as long as there’s no surcharge.
surcharge
Many businesses include the cost of processing credit cards even before the items are fob. Not changing a surcharge at pos gives the customers an illusion that they aren't paying it.
I use the HN plans quite often and pay a 4.95 handling fee every mth and no interest what so ever.
When I want something and I have no cash to spare outright I check my budget and calculate the payments for the said plan 12/48/50 or 60 mths and at the same time I get extended warranties for what i buy so if it does play up I can return it for replacement (usually a later type) with no hassles and it usually out plays the time I have paid for it, also when I do claim I have to purchase a new warranty contract. I have been using this type of purchase since it was introduced and have never faltered in any way shape or form and in doing so my home has all the modern appliances.Bear in mine that all the different sections of HNs have their own franchise and one section willnot put a purchase on another's department because of the surcharges applied with in the store, but you can bulk it up with the finance agreement.
This is way better than renting and paying out the blown out last payment to own it, why people do their purchases this way beats me.
But before entering into any agreement do your sums and budget your finances accordingly that way you can keep on top of it and if you can't do it dont' even try because you will probably end up in a bigger mess than when you took out the contract.
CC are a trap if you have too many and become too tempting when you see something you want, I only have 2 the HN one and my bank Visa, been offered heaps but refused on account that I may one day not be able to repay the interest accumulated.
Pay for it in the time frame and not wait til the time is up, if you do it this way you may as well have paid cash in the first place.
I have used, ZipPay, ZipMoney and Afterpay.
Never charged interest or a monthly fee, They charge the merchant a 3-4% fee or something.
Never used Oxipay but assuming its the same process.
ZipPay/Money Charge a $4.95 a a month fee if you have more than $5 owing, but if you pay it all off before the statement date they do not charge. Afterpay have no fees unless you are late.
Just looked at Oxipay - its the same as Afterpay, payed off over 4 fortnights. only time you will get charged extra if you are late.