Hey Rastis,I believe what this company is doing is pre-authing...

Hey Rastis,

I believe what this company is doing is pre-authing the full amount to the cardholder. Transaction would appear as pending on their credit card statement, and this would reduce the available balance of funds. However, the amount does not accrue interest until it has been captured. They then capture the install amounts over time.

The only real advance to this type of payment is for cardholder's who are trying to avoid credit card interest charges, you would still need the funds available, and for Visa, Mastercard debit cardholder's there is no real advantage of this type of payment.

Also, the other thing to consider is that, currently, in some regions like Australia you can only hold the funds for a pre-auth for up to 6 business days, so this payment type to split payments in Australia would not work at the moment.

Thanks.