Sometimes you might want to make a big purchase, but don’t want your credit card outstanding balance to go that high. But, you don’t have enough balance on your debit card either. In such situations, making a partial payment using your debit card and the rest of the payment with your credit card might seem to be a good solution. But, a few questions arise here. Is it even possible to split credit card payments like this? Do merchants provide their customers with such a facility? Having the answers to these questions is important before you decide of purchasing something this way. Also, you need to think carefully about whether splitting your payments like this is even a good idea or not.
To help you out with the same, we are here with this article that will make you understand what split payments are and whether you can split credit card payments or not. Keep reading for further information:
What Are Split Payments?
Split payments are the payments that are made using different sources, like two or more different credit cards, a credit card and a debit card, a credit card & cash, etc. Such payments are generally made for large purchases. For example, you purchased an item worth Rs. 1 lakh, and your credit card limit is Rs. 80,000. Now, you don’t have enough balance on your debit card to pay for this purchase, and you don’t want to exceed the limit of your credit card as it may affect your credit score badly. So, you make a partial payment using your debit card and pay the rest of the amount with your credit card by splitting the total payment between the two.
Is It Possible To Split Credit Card Payments?
Generally, merchants don’t allow splitting credit card payments as it seems to be an inconvenient method for them. They won’t allow you to pay using two different credit cards or using a credit card & a debit card but will accept only one method for payment. Nowadays, online shopping & digital payments are increasing day by day among individuals as these are easier to be done from the comfort of their homes. It is really hard (almost impossible) to split such digital payments. However, there are chances that a merchant at a physical store will accept split payments on your request. A few merchants at the stores may allow you to make a payment using multiple sources, but it is always a good option to confirm the same before making a purchase.
Benefits of Splitting Credit Card Payments:
As mentioned earlier, it is quite difficult to get your credit card payments splitter, especially in the case of online transactions. However, there are a few advantages of splitting credit card payments if you somehow manage to do it:
You can make the payment for a purchase at your convenience. Even if you are a lower credit limit and an insufficient balance in your savings account, you can make the transaction using both sources. Sometimes the reason is insufficient funds, whereas sometimes it can be just because an individual doesn’t want to overspend on a credit card. Whatever the reason is, if a merchant accepts split payments, you have the facility to pay as per your comfort.
Low Credit Utilization
Suppose you have a credit limit of Rs. 50,000 and you want to make a purchase worth the same, but without exhausting your 100% credit limit. It is because utilizing the whole credit limit may have a very bad impact on one’s credit score. In this case, you should try not to use your full credit limit but only make a partial payment using your credit card. The rest of the payment can be done via cash or debit card as per your comfort. You can do this by explaining the whole scenario to the merchant and requesting him to accept different payment sources. It will help you maintain your credit score by not spending more than 30% of the total credit.
Reasons Why Merchants May Not Allow Split Payments?
Most of the merchants you will see will not allow split payments and there might be various reasons behind this. Some of the popular reasons why merchants decline split payments are as follows:
- The merchants need to verify payment before they approve your purchase and if multiple payment sources have been used for a single transaction, it becomes quite difficult as well as confusing for them to verify the same.
- When multiple sources of payment are involved for a single transaction, there are high chances of delay and technical issues in it. It is because the card network systems and every other involved person needs to make sure that this particular transaction is not a fraudulent one.
What To Do When Split Payments Aren’t Allowed?
If you are unable to make a transaction using a single source of payment, but the merchant isn’t accepting split payments, the following are a few alternatives that can come in handy in such situations:
- Convert The Total Bill Into EMIs: Credit Cards always provide you with the option to convert your transactions or the total bill into EMIs and you can pay the amount easily in parts every month. So, if you have a lower credit limit, and insufficient balance on your debit card, it is always the best option to make a large purchase on a Credit Card EMI.
- Increase Your Credit Card Limit By Adding Balance To It: If you are experienced in the world of credit cards, you might be aware of the fact that you can increase your credit limit by paying an extra amount towards it. For example, suppose your credit limit is Rs. 50,000, and you want to purchase something worth Rs. 60,000 using it. Now, if your credit card bill is Rs. 10,000, you can pay an extra Rs. 10,000 or more towards it in order to increase the total credit limit. Also, keep in mind that you should not spend more than 30% of your total available credit.
Credit Card Split Payments may or may not be accepted by different merchants, but what matters the most is how wise you are to handle the situation. Although splitting credit card payments might be convenient for you, converting your bills into no-cost EMIs, or increasing your credit limit is an even better idea. Before making the final decision of purchasing an expensive item, you should have a clear idea of how you are going to pay for it, and what if your primary source of payment doesn’t work. This is how wise financial decisions are made and hence every credit cardholder should keep all these things in mind.