Amazon Monthly Payments: How Amazon Buy Now, Pay Later Works

Spreading out payments (interest free) for larger items can be a financial lifesaver. And it turns out, one of our favorite retailers, Amazon, offers this very service, known as Amazon Monthly Payments. Breaking up purchases into scheduled, interest-free payments helps stretch your budget while also allowing you to get the expensive items you need quickly. 

Inflation is making it harder for people to make ends meet, and the Consumer Price Index (CPI) shows across-the-board price increases. Financing solutions like buy-now, pay-later options can be very helpful, as long as you understand how the service works before you jump in. Tried-and-true layaway services offer a similar concept in terms of breaking up your cost into even payments. However, buy now, pay later differs because it lets you get your product right away. Buy-now, pay-later services get you what you need now, just make sure you don’t mind paying for weeks after receiving.

Many big retailers like Best Buy, Walmart and Apple Pay Later offer great buy-now, pay-later options that are popular with customers. And Amazon Monthly Payments is one of the latest to join the fray. We’ll break it down for you, so you know all you need to be smart when using this service.

What Is Amazon Monthly Payments?

Amazon Monthly Payments is a financing offer that allows customers to buy qualifying products with scheduled interest-free installment payments. After your initial payment, your product will ship, you then pay four additional monthly installment payments. So, your final payment will be 120 days from the shipment date.

• Initial Payment – Item or device ships.
• First Installment Payment – 30 days from shipment date.
• Second Installment Payment – 60 days from shipment date.
• Third Installment Payment – 90 days from shipment date.
• Fourth Installment Payment – 120 days from shipment date.

How Does Amazon Monthly Payments Work?

Using Amazon Monthly Payments is easy:

If a Monthly Payment offer is available, you will see it listed as a purchasing option on the product detail page or during checkout. For example, when you look at the Amazon Echo Show 10, you will see two payment options, five monthly payments (your Amazon monthly payment option) or one-time payment.

• Amazon Monthly Payments may not be available to every customer, and availability of qualified items may vary from customer to customer. According to Amazon, your opportunity to use Amazon Monthly payments is not based on your credit history; instead they use information related to your account like your purchase history and the price of the product or device.
• Amazon Monthly Payments are flexible. Prepay your next scheduled payment if you choose. Pay the remaining balance of your purchase at any time. You can change the payment method by logging in to your Amazon account settings and check your payment schedule by visiting Amazon Manage Monthly Payments.
• Amazon Monthly Payment items or devices are subject to the same standard return policy as Amazon products purchased normally. If you return the product before your item has been paid for, the remaining balance of your installment plan will be deducted from any refund.

How Is Amazon Monthly Payments Different From Amazon Layaway?

Amazon Monthly Payments is different from Amazon Layaway in that you will receive your item or device as soon as your first payment is made. Both programs enable you to break larger cost purchases into five interest-free payments. With Layaway you must pay for the item in full before it will ship to you. Amazon Monthly Payments is a good choice when you need the product quickly. 

Are There Any Fees With Amazon Monthly Payments?

There are no fees associated with using Amazon Monthly Payments. You will not be charged interest or finance charges. However you can expect to pay any taxes, shipping or add on charges as would be typical for any normal Amazon purchase. 

What Might Happen if You Miss Payments With Amazon Monthly Payments?

It’s not easy to miss a payment with Amazon Monthly Payments because they are scheduled in advance and use the credit or bank card that you have on file with your Amazon account.

• If your bank/credit card can’t be charged, Amazon will make an attempt to charge another payment method they have on file for you. 
• If Amazon is unable to charge any card saved to your account, they may decide to deregister your Amazon device that was purchased with Monthly Payments (which will block your ability to access Amazon content or services) or suspend or terminate your Amazon account.

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