What to consider when paying by credit card for deferment charges

Although credit cards cannot be said to be new, they have been modified in form and function. You can activate or deactivate them as necessary from the App or web of the entity. Additionally, you can register it in payment apps on your smartwatch or mobile phone and pay as if you were actually present. They can also be used to make online payments.

Banks often offer the option to defer payment for charges exceeding a certain amount when you pay with a credit-card. These installments are charged at the card's credit limit.

The possibility of postponement may be raised after the purchase via the App or Web of your entity (some communication might be received by SMS or mail announcing that the client has the option of postponement), or at the time of making payment at the store at the POS.

This payment is different than the one you normally use on your card. It can be end of the month without any interest or revolving and it only affects the charges that you applied it to. This means that you can use the credit limit already granted.

The deferment may be free but banks could charge interest, a fee, or both.

These conditions should be in the contract you signed or in any update your entity has sent you. However, if you haven't used this method of payment before, the customer may not recall it. The Bank of Spain emphasizes the importance of reviewing all credit payment options supported by your card.

You may be tempted to delay payment. However, you should always remember that deferment creates a debt you will have to repay. Do not authorize it with your PIN or OTP without fully understanding the terms and conditions (types), term, commissions and APR. Also, you need to know what happens if the product is returned. This includes whether the financing was canceled at the store or if it continues as normal.