There are two types of Synchrony financing programs available—Synchrony Flex Credit Card and Synchrony Pay Later. The Synchrony Flex Credit Card is called revolving credit, because the cardholder has a designated credit limit that can be used over and over to make purchases, as long as the account is in good standing. The purchase is subject to standard account terms, and the cardholder pays off the purchase by making monthly payments or paying their balance in full. They can avoid paying interest on their purchase by paying their balance in full each month by the payment due date.
You may also choose to offer promotional (or promo) financing to your customers who use the Synchrony Flex Credit Card. This type of financing has a time component (e.g. 6 months,12 months, etc.) and an interest component (Deferred Interest, 0% Interest, etc.).
Here are some examples of promotional financing:
Deferred Interest
Interest accrues on the promotional purchase during the promotional period at the accountholder’s
standard rate for their account and is shown on the billing statement as accrued interest.
- If the promotional purchase is paid in full by the end of the promotional period, the accountholder will not be charged any interest on the promotional purchase.
- If the promotional purchase is not paid in full by the end of the promotional period, the accountholder will be charged the interest that has accrued at the standard APR on the account on the promotional purchase from the date of purchase.
A minimum monthly payment is required and varies based on the accountholder’s balance. Each billing
statement will display the required total monthly payment due on the account.
If only required minimum payments are made, the promotional purchase may not be paid off by the end
of the promotional period. Factors that determine this are:
- Amount of the promotional purchase.
- Length of the promotional period.
- Whether there are other balances on the account.
EXAMPLE OF DEFERRED INTEREST FINANCING: No Interest if paid in full within 12 Months on purchases of $500 or more. Interest will be charged to your account from the purchase date if the promotional balance is not paid in full within 12 months. Minimum monthly payments required.
Equal Payments No Interest
No interest is assessed on the promotional purchase. Equal monthly payments are required until the promotion is paid in full.
- The equal monthly payment is calculated by dividing the amount financed by the number of months in the promotional period allowing the financed amount to be paid by the end of the promotional period.
EXAMPLE OF EQUAL PAYMENTS: NO INTEREST FINANCING: No Interest with equal monthly payments for 12 months on purchases of $500 or more.
Synchrony Pay Later
The second type of financing program is Synchrony Pay Later, an installment loan, which is different from using your store credit card. This budget-friendly program allows customers to pay for their purchase over time, with flexible options.
Synchrony Pay Later provides the customer with predictable monthly payments, which can help make budgeting easier. Synchrony Pay Later allows customers to buy now and pay later for the things they want. This program has a simplified application, and the customer will receive an immediate credit decision.
With Synchrony Pay Later, customers finance a one-time purchase and pay it back over time with equal monthly payments. Customers can have multiple Synchrony Pay Later loans open simultaneously. There is no long-term commitment as the loan is automatically closed when paid in full.
Customers can choose Pay in 4, which is four interest-free payments over six weeks, or Pay Monthly,
which offers longer-term monthly payments for larger purchases.
Pay in 4
Pay in 4 is typically used for smaller purchases of $40-$500 and is a no-interest installment loan. Customers make four interest-free payments over six weeks. The first payment is due at time of purchase.
There is no interest and no late fees, and the customer makes payments via autopay (required). This option requires a credit check. An inquiry may appear on the customer’s credit bureau report but won’t impact their credit score.
Pay Monthly
Pay Monthly is typically used for larger purchases of $500-$12,000 or more. The APR (interest rate) ranges from 0% to 29.99%, depending on the customer’s credit profile. Equal monthly payments are required, and autopay is optional. An initial payment may be required at the time of purchase.
This option requires two credit checks. The first is a soft inquiry (doesn’t impact credit score) when the customer applies and prequalifies for the loan. The second is a hard inquiry, which may impact the customer’s credit bureau report, and occurs when the customer acknowledges the Terms and Conditions and accepts the loan.
PLEASE NOTE: Pay Monthly and Pay In 4 loans can't be modified once the consumer accepts the loan. You can provide the customer with a partial refund or full refund, but you can't adjust the loan amount in your eCommerce admin panel.
If you issue a partial refund, the customer's agreed-upon payment will remain the same, but the loan amount will be adjusted, and the loan will be paid off in less time.
FUNDING
There is a two-step merchant funding process with Synchrony Pay Later loans. First, the customer applies and prequalifies for the loan. Second, the consumer acknowledges and signs the Terms and Conditions and accepts the loan. Merchants are funded within two business days after the second step.
MERCHANT FEES
Synchrony charges merchants a fee to offer financing to your customers. The fee is based on the total purchase amount, including any initial payment made by the customer. There are many benefits to offering financing to customers on your website. It could help customers purchase an item they really want or need, with simple, convenient payments. Customers could also save their other credit cards for emergencies or other purchases. And, finally, financing could help you have larger cart sizes and build repeat shoppers.