U.S. Bank has introduced a new card for the buy now, pay later crowd: the U.S. Bank Split World Mastercard. It’s not a credit card but instead treats all purchases as BNPL.
Here’s how it works:
— Any purchase under $100 is split into three equal monthly payments — thus the name. No fees or interest applies. If you make multiple purchases under $100 during a billing period, they are combined into one three-month plan.
— Purchases of $100 or more also go into a three-month plan, but you have the option of switching to a six- or 12-month plan. However, these plans come with a monthly fee of 1.5% of the original purchase amount. So, for example, a $500 purchase would carry a $7.50 monthly fee.
— You can’t change your under-$100 plan from three months to six or 12.
— You can pay off any plan early.
The Split Mastercard carries no annual fee and offers no rewards or welcome bonus. U.S. Bank says you will likely need at least good credit to qualify. And like a credit card, your Split Mastercard will have a credit limit.
If you don’t pay back your balance in full by the end of your plan, you will be charged a $30 late fee each month until you pay it off.
If you like to use BNPL, you have plenty of other options, including services such as Klarna and Affirm. In addition, you may have access to BNPL from credit cards you already hold, such as American Express’ Plan It®, Chase Pay Over Time® and Citi Flex Pay.
[Read: Rewards Credit Cards]
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With the New U.S. Bank Split World Mastercard, Every Purchase Is Buy Now, Pay Later originally appeared on usnews.com
