Consumer shopping behaviours have changed drastically over the decades, and recent analysis determined that part of this transformation has been consumers’ desire to transition away from using traditional credit cards to shop.
The high fees, credit checks, and lack of accountability can make them more destructive than beneficial. Today, consumers are turning to buy now, pay later (BNPL) services to make purchases, leveraging their simplicity and flexibility.
As a new concept in the consumer world, there are still many questions surrounding BNPL platforms. Zilch, a leading BNPL provider, shares their insight on what consumers should know about their BNPL products.
What Is Buy Now, Pay Later?
Buy now, pay later is a form of credit available to consumers, which may allow consumers to make purchases and repay the cost by spreading the repayment over a set period of time. Some lenders, like Zilch may require a portion of the cost to be paid upfront.
The later payments are referred to as instalments and can be split according to the specific company policies.
Does Zilch Run a Credit Check on Applicants?
Zilch runs a soft credit check when users sign up. Depending on the information provided, our internal scoring decisioning tool will give us a clearer indication into how much we can lend to you responsibly.
Soft credit checks are not visible to companies and do not impact your credit score, unlike hard credit checks which could potentially lower your credit rating score for a certain amount of time. Please see terms and conditions for more information.
Oh, and heads up: not all lenders that offer but now, pay later products in the UK carry out soft credit checks. Some actually carry out hard credit checks, so remember to check this information before you sign up to any BNPL provider.
What Documents Are Required To Be Verified With Zilch?
When signing up for Zilch, applicants will need proof of identification. This can be provided in the form of a passport, driver’s license, provisional license, or identification card.
Additionally, applicants will need to include proof of address. Two copies from different sources are required, and they must be dated within the last three months. Such as
—a bank statement,
—council tax/rent/HMRC/government benefits documentation.
When signing up, these documents can be directly uploaded via your Zilch account (app or website)
How Much Does Using Zilch Cost?
Consumers can shop at thousands of online stores with 0 interest.
These participating stores pay Zilch — when shoppers execute purchases, Zilch makes money from them, not the consumer.
If the store you want to shop at is not among those thousands to choose from offering 0 interest, you can still buy now, pay later with Zilch, but with a fee payable for each transaction.
When you search for the store in the Zilch website or app and select “Pay in 4” as a way to pay, the text underneath will specify if there is a fee payable and the amount of the fee.
You’ll pay 25% of the total price along with a transaction fee upfront and pay the rest in 3 instalments over 6 weeks*.
What is Tap and Pay?
Tap and pay is a new and exciting way to use Zilch in-store. When shoppers pay in a store, they can tap and pay with their virtual, contactless Zilch card and split their payment via their Zilch account.
Users can simply add their Zilch card to their device wallet and activate the card before tapping at checkout. More information can be found here.
Why Tap and Pay with Zilch?
Customers can earn 2% back in Zilch Rewards every time they Tap and Pay in 1. They can use their Zilch Rewards towards their next buy or save them for that special something.
Alternatively, with Tap and Pay in 4, they can pay only 25% of the total price with a transaction fee upfront, then pay the rest in 3 instalments over 6 weeks, terms and conditions apply*.
Where Can Consumers Shop with Zilch?
Consumers can shop with Zilch via the Zilch website. Dozens of partner stores are listed which offer shoppers the ability to buy with 0 interest.
If you search for the store on the Zilch website or app and choose “Pay in 4” as a way to pay, the text below will indicate if there is a fee payable and the amount of the fee.
Merchants available via the Zilch website include Nike, Amazon, eBay, Ikea, Uber Eats, Expedia, and hotels.com, among others. Zilch can be used to shop for retail, food, entertainment, travel, and more. Anywhere Mastercard is accepted, Zilch is accepted.
There are some limitations. Some goods, digital content, and services can’t use Zilch.
These restrictions include adult products and content, alcohol, cash advances, credit card, and loan payments, precious metals or coins, foreign currency, gambling, gaming, gift cards, illegal items and activities, money transfer services, narcotics and drugs, virtual currency, vouchers, and weapons.
Can Anyone Use Zilch Anywhere?
Zilch Anywhere is a unique feature on Zilch. You already know that with Zilch, you can buy now, pay later at thousands of stores with 0 interest*.
With Zilch Anywhere, you can leverage buy now, pay later even at non-participating stores for a transaction fee charged at the point of checkout together with your first instalment.
Most buy now, pay later services can only be used at select stores that offer them as a payment method, unlike Zilch that can be used anywhere Mastercard is accepted (hint: everywhere).
Is There a Limit on How Much to Shop with Zilch?
Zilch has two limits when shoppers decide to shop using instalment payments: available to split amount and open purchase limit.
Available to split amount is the amount a user has to split over time when they pay in instalments over 6 weeks. When this amount is exhausted, the only way to replenish the limit is by paying off the pending instalments.
Those interested in increasing their limit can repay early or make one-time payments, another option is to connect with open banking, which could potentially increase the limit.
Users can also earn Zilch Rewards by paying in 1. They will get 2% cashback in Zilch Rewards for every pay in 1 transaction. These Zilch Rewards can be used to discount future purchases or be saved to spend on a full purchase.
What is an Open Purchase limit?
Open purchase limit is the maximum number of purchases a shopper can make with pending instalments remaining. If an account holder uses them all up, they need to pay off an open purchase.
The open purchase limit will refresh when they have fully repaid an instalment purchase. An open limit amount can increase as repayments are made over time and if repaid on time.
How Do I Make Payments with Zilch?
Once you set up your account with Zilch, you’re ready to make payments.
After you make a purchase, and have paid the initial upfront payment of 25% of your purchased amount plus any fee if they apply, the following instalments will be scheduled in your Zilch profile: Payments are made every two weeks in increments of 25% of the purchase. By week six, the purchase or service will be paid in full.
All payments can be made directly on a user’s Zilch account.
Can I Pay Off Zilch Early?
With the first purchase with Zilch, shoppers cannot pay off their second instalment early.
There are two reasons behind this: encouraging responsible spending and protecting shoppers from purchases made with their card without their approval.
For instance, if their card was stolen and used to make a purchase with Zilch, the early payment “freeze” of sorts will stop them from paying off the entire purchase in one go with their card and then making more purchases once the first one is fully paid off.
It will also give the cardholder time to contact their bank to stop payments from being made from their account.
What Devices Support Zilch?
Currently, Google, Apple, and Samsung devices that support contactless payments work with Zilch Tap and Pay.
Does Zilch Allow Returns?
Returns are simple with Zilch. Once a shopper returns an item and the merchant approves it, Zilch will then be notified, once this notification is received, Zilch will process the refund which may take up to 14 days.
They will then get a notification on the Zilch app or website when the refund has been successfully processed.
What if a Zilch User Is Unable To Pay on Time?
If Zilch cannot collect a payment, the user’s account will be placed on hold. This means that the user will not be able to use Zilch to make purchases.
Once the payment is made, the account will automatically be reactivated. Zilch will never charge any late fees.
If a Zilch cardholder cannot make a payment, they’re encouraged to contact Zilch at the earliest convenience with their current circumstances.
Other helpful option?
If consumers need a brief extension, they can use the Zilch Snooze feature which gives users the ability to delay an instalment for 4 days. Users can only Snooze once per purchase.
Using Snooze on their second instalment will be free. Using Snooze for their 3rd and 4th instalment will incur a fee.
What happens if I am still in financial difficulties?
If you find yourself in additional financial difficulties, we are here to help. We have a dedicated team that could provide you with useful information and support, moreover if this approach is not for you there are lists of helpful organisations that could help you.
Does Zilch Offer Plastic Cards?
Since most expired bank cards end up in landfills because they’re made of hard-to-recycle PVC plastic, Zilch opts not to provide these cards.
The company is consciously green, plastic-free, and all about reducing waste and carbon footprint. Instead of a physical card, it offers a game-changing Zilch Virtual Mastercard that shoppers can use anywhere.
Who Is Eligible for Zilch?
All UK residents that are 18 years of age or older can apply to use Zilch. However, there are some exceptions. Here’s who can’t use Zilch to buy now and pay later in the UK with no hard credit checks.
— An applicant who has taken action that does not adhere to Zilch’s terms and conditions during or after the registration process.
— An applicant whose identity, address, or card details cannot be verified.
— An applicant who does not qualify for Zilch based on their internal affordability checks.
— An applicant who has been flagged by a Zilch partner as a politically exposed, special interest, or sanctioned individual.
Try Zilch Today!
Zilch is a BNPL that allows customers to shop BNPL anywhere Mastercard is accepted.
To get started, it’s super quick! Shoppers can visit the Zilch website and click “sign up.” They will then be directed to enter their contact details and link their debit card.
If approved, they can start shopping and paying over time.
*Spend responsibly, spending more than you can afford could seriously affect your financial status. Credit subject to status, 18+, UK residents only. Representative APR 18.1% (fixed). Rep Example: based on total spend: £240 (+ £2.50 transaction fee). Total repayable: £242.50 paid over 6 weeks, 1st payment £62.50, then 3 payments of £60.00 every 2 weeks. T&Cs apply.