Is anyone familiar with the Bill Me Later payment plan?
Answer:
Transaction implications:
"Zero Fraud Liability" Protection: you are not responsible for unauthorized charges, your identification through social security and date of birth ( IMOH, the only real benefit. )
As advertised: Secure Shopping - eliminates the hassle of digging out a credit card or entering an account number. ( It does not specify how not using a credit card safeguards your cash. It appears to be like any other online lending system. )
Financial implications:
No yearly fees. ( A plus )
Clause 5. The fixed Daily Periodic Rate is 0.04929%. This corresponds to an ANNUAL PERCENTAGE RATE of 17.99%. *
This means paying that rate on top of the principal.
Clause 5.
Minimum Finance Charge $ 2.00
Clause 5. Penalties additional to the interest charges above.
Fee for paying late If the balance is:
Under $5.00 - $0.00
$5.00 to $49.99 - $9.00
$50.00 to $149.99 - $19.00
$150.00 to $499.99 - $29.00
Over $499.99 - $35.00
Clause 1.c.1.
Present offer is "90 days same as cash." which means the Deferred Payment option or no interest charged for 90 days. ( A plus, do reconfirm the terms to benefit from this with their staff. )
Clause 8.
No security interest required to secure this Account. ( A plus )
Clause 12.
Full repayment of amounts owed are not penalised for early repayment. ( A plus )
Clause 4.d.i.
Not a credit line, each transaction is assessed separately.
Owed amounts attact interest on principal of a minimum $100 spending. Can't locate the fine print.
Source: Terms and Conditions of the Bill Me Later® Payment System at http://www.bhphotovideo.com/framework/bm.
I do not see how this product sets itself apart from the rest, other than the 90 days interest free lending terms and waiver of yearly fees.
The company will bill you the full amount of what ever at a latter date. It can be a good deal. It always better to pay now because you might not have the money latter.You risk getting into debt that you do not need.
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