The vast majority of stores now offer the option to pay for purchases by credit card, and what about paying by invoice instead? Which payment method does the consumer prefer and what are the advantages of this or that solution as a customer? Our analysis.
Payment by credit card: simple, easy and universal
It is no coincidence that practically all stores offer this payment method. In fact, this solution is both simple and easy to put into practice. For customers, the credit card is like a real electronic coin holder. Despite the many advantages it has, there are also some drawbacks:
- Once the limit is reached, the card can no longer be used. Even making an immediate transfer, you will have to wait a few days for the payment to be recorded.
- Each card is defined with a limit, also called plafond that cannot be overcome. A person with a limit of 3,000 USD who wishes to pay for a piece of furniture worth 3,500 USD, will find himself unable.
- If there is the possibility of paying the invoice in monthly installments (partial repayment of the amount used), then the interest rate is then very high: this can lead to significant and often underestimated costs for the consumer.
- Repeated delays in payment can lead to registration with the ZEK (credit information center). Such registration can therefore complicate any future request for a credit card or even a consumer loan.
Choose the right card
Although payment by credit card has many advantages, the strong competition on the market allows, through the comparison of offers, to minimize the disadvantages associated with this method of purchase. For example, Multicredit offers for example a particularly interesting Mastercard credit card
- A higher credit limit : to avoid, for example, running out of liquidity
- A low interest rate : which allows you to pay in monthly installments without involving too high a cost.
- Maximum security : to make your purchases with peace of mind.
- A modern solution : contactless payment, online account management, support service, …
Payment by invoice: the undervalued alternative to paying by credit card
This solution may seem less “modern” at first, but the payment between invoice is a method that attracts many customers. In addition, up to 70% of consumers prefer to pay by invoice whenever possible. In fact, the problem is that this means of payment is not always available. However, payment by invoice has many advantages for both the customer and the seller. For customers, this payment method is often preferred, provided it is offered by the seller. In fact, when making a purchase:
- The buyer has 30 days to make the transfer, which gives him time to organize his finances.
- Sometimes it is possible to split the payment into 2 or 3 installments, which reduces the budget and facilitates the payment.
- No credit card used, the limit remains unchanged, and the card available for other purchases or needs.
Payment by invoice: advantages for the seller
In addition to facilitating the payment of its customers, merchants and online stores sometimes benefit from this solution:
- Increase in turnover: studies show that if a customer is given the opportunity to pay with 1-3 monthly installments, he buys more. Globally, sales can increase from 10% to 15%.
- Some solutions also allow the financing of invoices and the management of credits. This allows, on the one hand, the seller to immediately collect the invoiced amounts, and on the other, to avoid any administrative operation related to the control of the collections, allowing a considerable saving of time.
- For self-employed workers and SMEs who want to offer invoice payment to their customers, Multicrédit offers, for example, a B2C financing solution, with the possibility of obtaining neutral advice from a specialist.
What is the preferred solution?
As a buyer, everything will depend on the situation and what is being proposed by the seller. Although credit cards are very convenient, it should be borne in mind that they can incur significant costs if the consumer chooses a refund for several months. In addition, the invoice payment allows you to keep the credit card limit intact for any other need. While in the case of high expenses, this is important. In the end, and beyond the question of costs, it is particularly practical to have different payment solutions: the sellers who offer different payment methods have understood this well!