"Interest Free Installments" - What's the catch?

[shri]

Randomly got curious about this...

Looking at buying a widget and the manufacturers site said - 12 Interest Free Installments (subject to CC approval - HSBC and another bank).

How does this work? Does the manufacturer pay the bank some cash to handle this transaction as a cost of sale?

Or is there a processing fee or sorts that you as the consumer pay to get the interst free instalments.

[hullexile]

Randomly got curious about this...

Looking at buying a widget and the manufacturers site said - 12 Interest Free Installments (subject to CC approval - HSBC and another bank).

How does this work? Does the manufacturer pay the bank some cash to handle this transaction as a cost of sale?

Or is there a processing fee or sorts that you as the consumer pay to get the interst free instalments.

I once reported a company in the UK who were offering interest free installments - but a discount if you paid up front. So the installments price was higher so in effect interest was being charged. The advert was pulled.

[shri]

Just noticed it said 'from ... 2xxx'

[ArrynField]

If you own a designated card, it’s for for selected shops / restaurants etc subject to the banks approval.

If you pay on time, there’s no catch. If you default on payment they’ll probably charge a surcharge plus interest.

Each bank may have different terms.

https://www.hsbc.com.hk/content/dam/...instalment.pdf