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Buy now, pay later (BNPL) payment options are gaining increasing popularity among consumers and merchants alike. The ability to cover a large purchase without spending a big chunk of money at checkout makes these payment plans attractive among consumers, and credit card providers are taking notice. 

According to Visa, 58% of Canadians are interested in using installments as a way to cover purchases with retailers. In response to this data, financial institutions are offering BNPL services that allow consumers to split their purchases into smaller installment payments. Among these services is Installments Enabled by Visa, a type of BNPL plan that allows Visa cardholders to split their purchases into several payments over a set term.

Key Points

  • Installments Enabled by Visa allows eligible Visa cardholders to divide the cost of their purchases into smaller installment payments over a period of time.
  • This plan is not offered by Visa, but instead is offered through participating financial institutions.
  • You need to be a Visa cardholder to use Installments Enabled by Visa.
  • Generally, no credit check is required, and there is no impact on your credit limit.

What Is Visa’s Installments Payment Solution?

Installments Enabled by Visa is an installment payment service that allows eligible cardholders to pay for purchases in smaller payments over a set term. This service is offered through select financial institutions such as CIBC, Scotiabank and Desjardins. 

How Does It Work? 

This installment payment solution acts much like a traditional Visa credit card. Any expenses you take on will get charged directly to your existing credit card account in fixed, equal amounts, rather than you having to borrow money. Then, you’ll simply make your credit card payments as you normally would.

During Online Checkout

At the point of checkout with a participating merchant, you’ll be presented with payment options for you to choose from. Select ‘Installments Enabled by Visa’ on your purchase, then pick the installment plan you want from the available options. You can split qualifying purchases into smaller, equal payments over a set term using your credit card.

Review and agree to the terms and conditions before submitting your request for an installment payment plan for your purchase. Your receipt will include the details of your installment plan. Then, you can pay with the credit on your existing credit card.

During In-Store Checkout

Some merchants or credit card issues may not offer installment plans during in-store checkout. You’ll need to first see whether such payment plans are offered in-person before choosing, For instance, Scotiabank’s SelectPay is available in-store, while CIBC Pace It Installment Plans are not.

If an installment payment plan is available at checkout when shopping in-store, the process is relatively the same as an online purchase. When you’re ready to pay for your purchase, select the installment payment plan option, then choose the frequency of installments. Review and agree to the terms, then submit your payment. You’ll be able to see your installment plan information o your receipt.  

After Purchase

If your bank permits, you may be able to choose an installment payment plan after you’ve made a purchase. After your transaction is posted — which can take a few days — you can log in to your online banking to see your plan status. 

Choose your installment plan in your online banking, then select an eligible credit card purchase you want to convert into an installment plan. Choose the installment payment frequency that works for you (ie. 3, 6, or 12 month options, depending on your bank), review any applicable fees, and agree to the plan’s terms and conditions. Then, confirm your payment plan. 

Which Financial Institutions Offer Visa Installments?

A handful of financial institutions in Canada offer Visa installments as a payment alternative:

ScotiabankCIBCDesjardins
Visa Installment Program NameScotiabank SelectPayCIBC Pace ItDesjardins Pay In Installments
Minimum Purchase Requirement$100$100$200
Interest RateStarting at 5.99% for 3 months6.99% — 8.99%0% — 10.9%
Available Terms3, 6, or 12 months6, 12, or 24 months3–48 months
Checkout Availability-Online checkout
-In-store checkout
-After purchase
Online only-Online checkout
-In-store checkout

Scotiabank SelectPay

Being one of the Visa installments program’s main collaborators, Scotiabank features SelectPay, which allows you to convert qualified credit card purchases of $100 or more into fixed monthly installment plans.

You can choose flexible payment plans of 3, 6, or 12 months, with rates starting at 5.99% for 3 months. Moreover, no installment plan fees are required.

Eligibility Requirements For Scotiabank SelectPay

To get approved for a Scotiabank SelectPay plan, you must: 

  • Have a Scotia Online or mobile banking account that’s in good standing
  • Be a resident of a province or territory other than Quebec
  • Make an eligible purchase of $100 or more with a qualified Scotiabank card
  • Be the primary cardholder of one of the following Scotiabank credit cards:
    • Scotia Momentum Visa Infinite
    • Scotiabank Passport Visa Infinite
    • Scotiabank Scene+ Visa*
    • Scotia Momentum Visa
    • Scotia Momentum No-Fee Visa
    • Scotiabank Value Visa
    • Scotia® Home Hardware PRO Visa Business

Benefits Of Scotiabank SelectPay

  • Can be easily managed using your Scotiabank online or in-app account
  • You’ll receive the same benefits as your Scotiabank Visa credit card, like rewards, cash back, and insurance coverage
  • No impact on your credit score

CIBC Pace It

If you make large or unexpected purchases, like renovations or travel expenses, CIBC features a similar program called CIBC Pace It. While this program is not necessarily reserved for Visa, it’s still a convenient option for CIBC credit card holders looking for an affordable and easy way to pay off big purchases using installment plans of 6, 12, or 24 months.

CIBC credit card users can spread payments of $100 or more over the terms mentioned. Rates depending on the payment plan you choose:

  • 6 monthly payments: 6.99%
  • 12 monthly payments: 7.99%
  • 24 monthly payments: 8.99%

Eligibility Requirements

To qualify for a CIBC Pace It Installment Plan, you must:

  • Be registered for a CIBC Online or Mobile Banking account
  • Make an eligible purchase using a qualifying CIBC credit card
  • Be a resident of a province or territory other than Quebec
  • Be the primary cardholder of an “Eligible for Installments” CIBC card (most personal Visa or Mastercard credit cards are acceptable) that’s in good standing

Benefits Of CIBC Pace It

  • No change to your available credit
  • No credit check required
  • Create multiple installment plans
  • Continue earning rewards on your credit card

Desjardins Pay In Installments

As a Desjardins client, you can cover purchases of $200 or more in equal monthly installments with participating retailers using your Desjardins Visa credit card.

Installment plans range from 3 to 48 months. Interest rates vary between 0% to 10.9% depending on the payment plan and retailer. 

Eligibility Requirements For Desjardins Pay In Installments

To be eligible for this payment option, you must:

  • Be a Desjardins Visa credit card holder, including the following:
    • Flexi Visa
    • Cash Back Visa
    • Bonus Visa
    • Odyssey Gold Visa
    • Odyssey Visa Infinite Privilege
  • Have an Accord D credit limit
  • Make a purchase of at least $200 with your Desjardins Visa credit card

Benefits Of Desjardins Pay In Installments

  • Equal monthly installment payments
  • Earn BONUSDOLLARS or cash back on your purchases

What Happens If You Miss A Payment?

If you miss your installment payment, your financial institution will charge interest on the overdue amount at the annual interest rate (AIR) for purchases according to your credit card agreement. Interest will start to accrue on the first day of the statement period following the missed payment until you repay the full amount.

Can The BNPL Visa Installments Affect My Credit?  

Whether your credit score will be affected by an installment payment plan depends on the credit card issuer. According to Scotiabank and CIBC, for instance, no credit check is required. As such, your credit score shouldn’t be affected when you use the program.

With Desjardins, on the other hand, your credit score could be impacted, as your payments may be reported to the credit bureaus. You’ll receive a new account alert by the credit bureaus when you pay for a purchase in installments and when you’ve paid off your purchase via installments.

Regardless, if you miss your installment payments and don’t repay them, your credit score could be impacted if the credit card issuer reports your payments as missed or refers your debt to a collection agency.

Can You Pay Off Your Visa Installment Plan Early?

Yes, you can repay your installments early without penalty with all three credit card issuers above.

Benefits Of Visa Installments In Canada

There are plenty of things to enjoy about buy now, pay later programs like Visa’s installment payment program, including the following:

  • Affordability – Visa installments are great because they allow you to divide costs into equal payments that take place over several months, if needed.
  • Less interest charged – Another major upside to Visa installments is that they come with better interest rates (sometimes zero interest) than other credit products.
  • Convenience – Visa installments are easy to access, as long as you carry an eligible Visa credit card.
  • No impact on your credit score – Credit checks are typically not required, so your credit score shouldn’t be affected, as long as you’re responsible with your regular credit card payments.

Risks Of Visa Installments In Canada

Despite the benefits of Visa installments, there are certain risks involved with “buy now, pay later” programs in general, such as the following:

  • Potential credit damage – Since Visa reports credit card payments to Canada’s credit bureaus, any late or missed installment payments may have a negative effect on your credit.
  • Financial Risks – Missing installments can also lead to penalty fees. Plus, your payments may continue after you’ve returned an item unless you inform Visa.

Final Thoughts

The Visa Installments can be an excellent and flexible alternative to paying in full upfront, as long as you act responsibly and make all your payments on time. Check in with your financial institution to see if Visa Installments is something available to you.

Visa BNPL FAQs

Do all banks offer Installments Enabled by Visa?

Only participating financial institutions offer the Visa installment program. Reach out to your bank to see if this option is available to you.

How do I make installment payments?

Make payments through your monthly credit card statement as per your financial institution’s terms.

How do I know if I’m eligible for Installments Enabled by Visa?

Your credit card issuing bank will determine your eligibility for the Visa installment plan.

Will the installment plan be cancelled if I return an item?

You’ll need to speak to your card issuing bank for details on how refunds may affect your installment plan.

Bryan Daly avatar on Loans Canada
Bryan Daly

Bryan is a graduate of Dawson College and Concordia University. He has been writing for Loans Canada for five years, covering all things related to personal finance, and aims to pursue the craft of professional writing for many years to come. In his spare time, he maintains a passion for editing, writing screenplays, staying fit, and travelling the world in search of the coolest sights our planet has to offer.

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