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Chase stops customers using credit cards to make BNPL instalment payments

Chase customers will soon be banned from using their credit cards to pay for third-part BNPL instalment plans.

The US bank informed credit cardholders on their latest statements:

"Effective October 10, 2024, you will not be able to use Chase credit cards to pay for third-party Buy Now Pay Later (“BNPL”) instalment plans. Payments to these instalment plans (e.g., Klarna, AfterPay, etc.) using your Chase credit card will be declined.

"If your Chase credit card is used for any of these recurring BNPL plans, please update the payment method with your BNPL provider to avoid any missed payments or late fees (if applicable)."

The bank offers its own BNPL feature, Chase Pay Over Time, which lets users break up credit card purchases into instalments.

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Editorial | what does this mean?

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Comments: (2)

A Finextra member 18 July, 2024, 09:34

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That is a surprising action; I am not familiar with any similar refusal to limit card usage, other than for illegal or immoral purposes. Would JPM like to publish what products or services they don't want their cards used for - or may plan to refuse to service - on the basis they have a competing service they wish to protect?

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A Finextra member 18 July, 2024, 10:04

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This looks like sensible risk management - paying BNPL with a credit card is equivalent to paying a credit card balance with another credit card, which no issuer would allow.