In an effort to compete with more 'traditional' shops, eBay has started to offer finance agreements though PayPal for expensive items. This means that, if the seller decides to offer it, you can now spread the cost of an item into affordable monthly payments.
This is good for buyers, good for sellers, and good for eBay. Buyers can get the kind of credit agreements they're used to in shops. Sellers can make their items more attractive to buyers who might not have all the money then and there, but eBay still pays the sellers upfront, they don't have to wait to be paid each month or anything like that. Buyers make their monthly payments to PayPal's credit provider instead.
The APR of the Buyer's Credit program is currently 12.9%. You can pay back $999 or more over 12 months, or $1,999 or more over 24 months. There are also interest-free options for purchases of $199 or more over 3, 6 or 12 months.
The reason why some of these credit offers sound better than others is that it is up to the seller to decide how good the credit offer should be and pay extra to PayPal to offer it. To give their buyer the best promotion, for example, of no interest for twelve months, the seller must pay 3.75% of the item's cost to PayPal. Continue....
