Glossary of terms commonly used in the Wallet

installment payment

how to read
How to read in Japanese: installment payment

The method of paying the full amount required for a purchase at one time is called lump-sum payment, whereas the method of paying in installments is called installment payment. Since all payments made in installments fall under the installment payment category, the number of installments, such as two or ten, is irrelevant.

Generally, when using installment payments, the full amount of the payment is paid from the financial institution to the store where the product was purchased first. In other words, the consumer pays the financial institution, not the retailer, in installments. Therefore, in some cases, consumers who pay in installments must pay the borrowing interest rate in addition to the normal purchase price.

Some credit card payment methods include a revolving repayment method in which monthly payments exceeding a certain amount are automatically made in installments, which is convenient if used in a planned manner. However, be aware that you may end up paying unnecessary interest if you make installment payments on items that can be paid in a lump sum.

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