Fundamentals of Flex Pay

• Merchants offering flex pay to their customers have set varying terms for the purchase option. The fundamental similarity among most of them is that they allow buyers to order and receive the item immediately. The buyer typically must have a major credit card in their name and then agree to allow the merchant to charge the card a set amount for a set number of payments until the item is paid in full. For example, a merchant selling a television for $1,000 may offer a flex pay option that allows for five monthly payments of $200 each. Items that can be purchased using flex pay run the gamut from appliances to clothes. You can even use the option to buy website hosting. The option makes big-ticket items affordable.
  
  

How Flex Payments Are Made

• The buyer gives the merchant the right to deduct the payment from their credit card. Major credit cards accepted include American Express, Discover, Diner's Club, MasterCard and Visa.
  
  Typically with this payment option, the buyer does not have to send in a payment; it is instead automatically charged to their credit card. Most flex plans do not allow buyers to use their checking accounts to make payments. Money orders cannot be used either. Only debit cards with the MasterCard or Visa logo can be accepted.
  
  

No Interest Orr Fees On Flex Pay

• Flex pay transactions are similar to credit card transactions because they allow the buyer to space out their payments. However, the difference between the two is that flex pay plans are interest and fee free transactions, which is another way the option is appealing to shoppers. A buyer can use their credit card to make purchases so they can pay for the item over time, but they will have to pay interest.
  
  Flex pay transactions don't incur interest from the merchant, so the charges to the shopper's credit card are for the price of the item only.
  
  

No Credit Check

• Shoppers who may not qualify for credit may seek out flex pay plans because they generally don't require credit checks. That's because the item being purchased is secured by a major credit card that can be charged set increments without getting permission from the cardholder for each charge. The onus is on the buyer to make sure the credit card they use for flex pay has enough available credit for the flex pay charge to go through. The buyer is also responsible for keeping the merchant updated about changes in their billing information, especially if the credit card account is closed.