certegy/humm charge the business owner between 8-17% dependant on the value of the purchase and length of term,
retailers pass the cost on the the consumer by not offering discount or current promo specials on items purchased with bnpl
for example I the retailer sell x ring for $2000 RRP, cost of ring is actually $1000 for me the retailer to purchase and I've been able to work out that my cost of running my business is 50% so I need to sell this ring at 1500 to brake even,
I put the ring for sale at $2000 knowing I can make 25% if I sell the ring full retail,
I offer certegy/humm as a payment method
if someone buys that ring in cash I collect $2000
if they pay with cc i recive 1990 ish, I loose .8 a 1.65% in merchant fees
if they take me up on my certegy/humm option I fill out paper work, send it in, certegy - the charge % (intrest) in accordance with what the term is
5years 2000 would be around 10 percent
I then get sent via eft $1800 from certegy direct
if the client defaults that's not my problem now, however if it happened often certegy/humm May change the arrangement with my company
so in term,
anything you purchase on certegy/finance can actually be brought in cash for less!
unless they have a bit of a monopoly or exclusive item and it's so inflated they are happy to absorb the % of finance and have built it into the sale price, ( it then) becomes better for the business to sell as little as possible on fiancé as they collect more profit!
however the certegy/humm model is a tools designed to help business get sales they never would have got because people couldn't affoard them otherwise
wether the business owner absorbs the charge, and makes less
or only allows this finance product to be used on no sale items and full RRP that's upto him
what's illegal under consumer law is to add certegy/humms % charge to the business owner to the advertised sale price of an item or service once someone asks for it as a payment method!
you could have got the ring cheaper, using your own money if the store could offer discount instead on the rrp!
