Pay by credit card or invoice? Comparison of solutions

While the vast majority of stores now offer the option of paying for purchases by credit card, what about payment by invoice? What payment method does the consumer prefer, and what are the advantages of this or that solution as a customer? Our analysis.

Payment by credit card: simple, practical and universal

credit card payment

If almost all shops offer this means of payment, it is not by chance. This solution is at the same time simple, practical, and easy to set up. For the customer, a credit card is sometimes like a real electronic wallet. If there are many advantages, there are also some disadvantages:

  • Once the limit is reached, it is no longer possible to use your card. Even by making an immediate transfer, it will take a few days for the payment to be recorded.
  • Each card is defined by a limit / ceiling that cannot be exceeded. A person with a limit of 3,000 dollars wishing to pay for furniture worth 3,500 dollars will find themselves trapped.
  • If it is possible to pay the invoice in monthly installments (partial reimbursement of the amount used), the interest rate charged is then very high: this can generate substantial and often underestimated costs for the consumer.
  • Repeated payment delays may result in registration with the ZEK (Credit Information Center). Such a registration can then make any future request for a credit card or even a consumer loan complicated.

Choose the right card

credit card

If card payment does not only have advantages, the strong competition on the market makes it possible, by comparing offers, to minimize the disadvantages linked to this method of purchase. Supmax Credit, for example, offers a particularly attractive Mastercard type credit card:

If card payment does not only have advantages, the strong competition on the market makes it possible, by comparing offers, to minimize the disadvantages linked to this method of purchase. Supmax Credit, for example, offers a particularly attractive Mastercard type credit card:

  • A higher credit limit: to avoid, for example, being short of cash
  • A low interest rate: allowing you to pay in several monthly payments without this involving too great a cost.
  • Maximum security: to make purchases with complete peace of mind.
  • A modern solution: contactless payment, online account management, helpdesk, etc.

Payment by invoice: the underestimated alternative to card payment

Payment by invoice: the underestimated alternative to card payment

A solution that may seem less “modern” at first, payment by invoice appeals to many buyers. Thus, up to 70% of consumers prefer this method of payment when possible. Indeed, and therein lies the problem, this means of payment is not always available. However, paying by invoice has many advantages for both the customer and the seller.

Payment by invoice: advantages on the client side

credit payment

For customers, this method of payment for purchases is often preferred, provided that it is offered by the seller. Indeed, during a purchase:

  • The buyer has 30 days to make his transfer, which gives him time to organize his finances.
  • It is sometimes possible to split the payment into 2 or 3 installments, which makes it possible to lighten the budget and facilitate payment.
  • No credit card is used, the limit remains untouched, and the card available for other purchases or needs.

Payment by invoice: advantages on the seller’s side

Payment by invoice: advantages on the seller

In addition to facilitating the payment of its customers, merchants and e-merchants also benefit from this solution:

  • Increase in turnover: studies show that a customer who is offered the possibility of paying in 1-3 monthly payments buys more. Overall, the wind can increase from 10% to 15%.
  • Some solutions also allow the financing of invoices and the management of receivables. This allows the seller on the one hand to collect the invoiced amounts immediately, and on the other hand to avoid any administrative process linked to the control of collections, thus saving significant time.

For freelancers such as SMEs who wish to offer bill payment to their customers, Supmax Credit, for example, offers a B2C financing solution, with the possibility of obtaining neutral advice from a specialist.

Which solution to prefer?

credit cards

As a buyer everything will depend on the situation, and what is offered by the seller. If the credit card remains very practical, it should be borne in mind that it can generate significant costs if the consumer chooses a reimbursement over several months. In addition, paying by invoice keeps your credit card limit intact for any other need. In case of high expenditure, this point is important. In the end, and beyond the question of costs, having several payment solutions as a customer is above all practical.