A Comprehensive Guide to Financing and Payment Options on Amazon

Introduction

From fashion to furniture, Amazon offers a vast array of products for purchase. Sometimes, you may find it beneficial to spread out your payments over time to cover your expenses. Thankfully, Amazon provides numerous options, many of which allow you to avoid interest and costly fees.

Are Payment Plans Available on Amazon?

Surprisingly, yes! Amazon offers payment plans through its own installment payment programs, Amazon store-branded credit cards, or even through third-party services.

If you prefer a 0 percent financing option, you can choose the Amazon Monthly Payment Plan, a 0 percent promotional offer through an Amazon store card, or a credit card with a 0 percent introductory APR.

Types of Amazon Payment Plans

Whether you want to extend your payments or avoid interest charges altogether, Amazon offers various financing opportunities.

Amazon Monthly Payments

One program worth considering is Amazon Monthly Payments. If available for the product you wish to purchase, this program allows you to make payments over four months.

To utilize this program, simply choose the monthly payment option at checkout. Amazon will then divide the payments into five installments. The first payment, including shipping, handling, and taxes, is due when the product ships. The following four payments, each around 20 percent of the purchase price, will be charged to your account every 30 days. The best part? There are no interest charges or fees associated with this option.

The beauty of Amazon Monthly Payments is that it doesn’t involve a credit score check. Eligibility is based on your Amazon purchase history and the price of the product, as determined by Amazon.

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While Amazon Monthly Payments have their benefits, there are a few limitations to consider:

  • This option is only available for select products, and eligibility is only visible when searching for a specific item.
  • You can either make all five payments or pay off the full amount sooner, but you cannot extend payments beyond the four-month mark.
  • Only one product category or Amazon device is allowed per monthly payment program. For instance, you can choose either an electronic device or a piece of furniture.

Amazon Credit Cards

If you need more time to make payments or the Amazon Monthly Payments option is not suitable for your purchase, consider Amazon Equal Pay or Amazon Special Financing through Synchrony’s Amazon store cards or Chase’s Amazon Prime Rewards Visa Signature Card*.

Amazon Equal Pay

Amazon Equal Pay offers 0 percent financing and divides the purchase into equal payments over six to 24 months. This option is available with both Synchrony and Chase Amazon credit cards. As long as you make your payments in full and on time, you won’t incur any interest charges. The total amount is charged when the item ships, and your installment payment will be part of your monthly minimum payment.

The specifics of Amazon Equal Pay differ based on the card you have:

  • Chase’s Amazon Visa Cards:
Number of months Minimum purchase amount
6 $50
12 $250
18 $500
  • Synchrony’s Amazon Store Cards:
Number of months Minimum purchase amount
6 $50
12 $300 (limited-time offer through Dec. 26, 2022; typically $600)
24 $600

Amazon Special Financing

Amazon Special Financing is a deferred interest payment plan. It offers a 0 percent APR for six to 24 months, depending on the purchase size. To avoid interest charges, you must pay the full balance before the end of the promotional period. This financing option is usually available to Amazon store cardholders, but Chase Amazon Prime Rewards Visa Signature cardholders may also qualify.

While you don’t have to make minimum monthly payments, failing to pay the entire balance before the final due date will result in interest charges. Considering the higher interest rates associated with these cards, missing the due date could increase the overall cost of your purchase.

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Number of months Minimum purchase amount
6 $150
12 $600
24 On select purchases

Additional Amazon Financing Options

Amazon provides a few more options to suit your financing needs.

Citi Flex Pay

Citi Flex Pay allows eligible Citi credit cardholders to pay select Amazon purchases over time at a 0 percent APR or a low interest rate, depending on the payment plan. For purchases over $50, you can divide your payments into equal monthly installments lasting from three to 24 months. To take advantage of this option, simply choose your Citi card as the payment method when making an Amazon purchase.

Monthly payment plan Purchase minimum Promo APR
3 months $50 or more 0%
6 months $149 or more 0%
12 months $300 or more 0%
18 or 24 months $600 or more 9.74%

Amex’s Pay It, Plan It

American Express cardholders can benefit from flexible payment plans through the Pay It, Plan It program. With this program, you can divide purchases of $100 or more into manageable payments. While a monthly fee applies, no interest charges are associated with this option.

After making a purchase with your eligible American Express credit card, log in to your Amex account. From there, you can select the purchase you want to cover with Plan It. One notable advantage is that you can use this program for up to 10 purchases totaling $100 or more.

Credit Cards with 0% Intro APR Offers

If none of the aforementioned options appeal to you, consider applying for a credit card with a 0 percent introductory APR. Various credit card issuers offer promotional periods with no interest charges. Check Bankrate’s list of the best 0 percent interest credit cards to find a suitable option.

Buy Now, Pay Later Plans

Although Amazon Monthly Payments offers a buy now, pay later (BNPL) option, it might not be available for your product or meet your payment requirements. In such cases, you can consider third-party BNPL providers.

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Affirm

Affirm offers several financing options, some of which allow up to 48 months for repayments. While Affirm provides flexibility, not all options include interest-free financing. Additionally, depending on the loan type, Affirm may conduct a hard credit check, which can impact your credit score.

Klarna

Klarna allows you to download their app or add their browser extension to make purchases now and pay later over time. You can split your payment into four equal installments, paid every two weeks. Klarna only conducts a soft credit check, so your credit score remains unaffected. It’s important to note that late payments may incur fees, and failure to pay can lead to collections.

Zip

Zip is an app-based BNPL service that divides your purchase into four equal installments over six weeks. Similar to the others, Zip doesn’t require a hard credit inquiry. However, they charge a convenience fee and late fees, and failure to make payments may result in collections.

Choosing the Right Amazon Financing Option

Deciding which Amazon financing option is right for you can be challenging. Should you opt for Amazon Monthly Payments, an Amazon credit card program like Equal Pay or Special Financing, apply for a 0 percent intro APR credit card, or try a third-party BNPL service?

The first step is determining how long you realistically need to pay off your purchase. While Amazon Monthly Payments are convenient, they might not give you as much time as Equal Pay or Special Financing.

On the other hand, if you’re concerned about a hard credit check or don’t want another credit card in your name, Amazon Monthly Payments or a BNPL service could be a better fit.

Whatever option you choose, understanding your payoff plan and paying close attention to due dates is crucial. Any late payments could result in fees or penalties.

Conclusion

Many Amazon shoppers are unaware of the variety of payment plans available to them. Finding the right Amazon financing option for your budget has never been easier. By knowing your payment goals and staying organized with due dates, you can take advantage of the numerous choices Amazon offers.

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