We present eBay’s new “Buyer’s Credit” program

To compete with more traditional stores, eBay began offering financing offers for major ticket products through PayPal. This means that if the seller decides to offer it, you can now split the cost of the product into affordable monthly payments.

It’s good for buyers, good for sellers, and good for eBay. Buyers can get the kind of credit deals they are used to in stores. Sellers can make their products more attractive to buyers who may not have all the money on hand, but eBay always pays sellers upfront – they don’t have to wait for salaries to be paid monthly. Instead, buyers make their monthly payments from the PayPal credit provider.

The effective annual percentage rate of charge for the buyer credit program is currently 12. 9%. You can pay $ 999 or more in 12 months or $ 1,999 or more in 24 months. There are also interest-free options when you buy at least $ 199 over 3, 6, or 12 months.

Some of these credit offers sound better than the fact that the seller has to decide the quality of the credit offer and pay PayPal for offering it. To get the best offer for the buyer, without paying interest for 12 months, the seller must pay 3. 75% of the price of the product to PayPal.

Basically, this means that sellers pay less when buyers pay interest, and sellers pay interest costs on interest-free offers. In any case, PayPal does its best, buyers are happy to get credit and sellers are happy to sell.

Can I get this refund?
For products over $ 199, buyer credit is now automatically offered only to U. S. buyers. Just click the link when you buy something over $ 199 and you will be guided through the application process, which includes a 30-second check of your credit history. Then go through the Purchasing Process as usual and get your product before you pay a penny.

Why does eBay offer this?
eBay says it wants a ‘level playing field,” allowing eBay companies to compete with large chain stores, and they also want to promote PayPal as a method of payment. Relatively few buyers can afford more expensive products on eBay at one time, and therefore the introduction of buyer credit seems likely to significantly increase prices and sales at the top of the market.

Please note that you can use buyer credit anywhere approved by PayPal, not just eBay. According to PayPal, it’s “like a credit card – minus a card!” You will not receive a card number – you can only pay with a credit card with your email address and password.

The only task left then is to find the best deal on this truly special product – an expensive thing you’ve ever wanted but can never afford. But how can you be sure you are getting the best price? Try eBay research tips in the next email.

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