first, installment payment is mostly used in some product transactions with long production cycle and high cost. Such as the export of complete sets of equipment, large vehicles, heavy machinery and equipment. The method of installment payment is that after the import and export contract is signed, the importer pays a small part of the payment as a deposit to the exporter, and most of the rest will be paid in installments after the products are partially or completely produced and shipped, or when the goods are installed, commissioned, invested and quality guaranteed.
II. Market Meaning
Installment payment is actually a loan provided by the seller to the buyer, with the seller as the creditor and the buyer as the debtor. The buyer can get the goods or services he needs after paying only a small part of the payment, but because interest is included in the future installment payment, the amount paid for buying the same goods or services by installment payment is more than that paid in one lump sum.
III. Behavioral characteristics
The method of installment payment is that after the import and export contract is signed, the importer pays a small part of the payment as a deposit to the exporter, and most of the rest will be paid in installments after the products are partially or completely produced and shipped, or when the goods are installed, commissioned, invested and the quality guarantee expires.
Fourth, suggestions for use
Find out the scope of installment payment. Banks have different practices on installment payment. Except for the goods in the credit card installment catalogue, some banks have specific requirements on the place and amount of purchase. China Merchants Bank can apply for installment payment when spending in Gome, B&Q and other places. It is important to find out whether this consumption can be paid in installments before shopping.
5. Accurately calculate the handling fee. There is no such thing as a free lunch. Although credit card installment payment is free of interest, the handling fee is inevitable. It is necessary to calculate the handling fee to be paid before consumption. If the price is acceptable after adding the handling fee, it is not too late to swipe the card again.
VI. Selecting the Most Cost-effective Credit Card Since banks calculate the handling fee differently, after understanding the handling fee of credit cards, you should choose the most suitable card in your hand for transaction.