Under normal circumstances, each period is one month. If divided into twelve periods, it will last twelve months, which is one year.

In other words, from the first billing day starting from the day when the card is swiped to the twelfth billing cycle, you can pay back 12 months of money in one payment.

Pay by Installments is mostly used in product transactions with long production cycles and high costs. Such as the export of complete sets of equipment, large-scale vehicles, heavy machinery and equipment and other products.

The method of installment payment is that after the import and export contract is signed, the importer first pays a small part of the payment to the exporter as a deposit, and the rest of the payment is paid after part or all of the product is produced, shipped, and shipped. Or repay in installments upon arrival, installation, commissioning, investment and expiration of the quality guarantee period.

The installment payment method was developed after World War II. At the beginning, it was limited to the purchase of general daily commodities or services.

Later, with the rapid development of productivity, the scale of industrial and agricultural production expanded day by day, and the required expenses increased. In addition, with the development of bank credit, the field of installment payment expanded to include enterprises purchasing large machinery, equipment and raw materials. superior.

With the improvement of China's financial services and changes in people's consumption habits, installment payment consumption, which is popular abroad, has been introduced into the country and has been quickly recognized by domestic consumers.

Those who consume through installment payments are usually young people who currently have poor payment ability but have consumption needs. The products they consume are usually laptops, mobile phones, digital products, etc.

Instalment payment options are usually offered jointly by banks and installment payment providers.

Banks provide consumers with personal consumption loans equivalent to the amount of goods purchased. Consumers use the loans to pay suppliers, and at the same time, suppliers provide guarantees to consumers and assume irrevocable joint liability for debts. Young people who use installment payment methods are often called "installment people".

Instalment payment is actually a loan provided by the seller to the buyer. The seller is the creditor and the buyer is the debtor.

The buyer can obtain the required goods or services after paying only a small part of the payment. However, because future installment payments include interest, the purchase of the same goods or services by installment payment means that the amount paid The amount is more than the one-time payment.

On the one hand, the installment payment method allows the seller to complete promotional activities, and on the other hand, it also provides convenience to the buyer.