NEW YORK—Chase Bank has announced that beginning in October its cardholders will no longer be able to use their Chase cards to make BNPL payments.
Chase appears to be concerned about borrowers incurring “debt on top of debt,” one analysis stated.
Chase has published a notice on its website that effective Oct. 10, the prohibition on payments to BNPL providers using Chase cards will go into effect.
“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),” Chase stated on its website.
Chase Offers its Own BNPL Plan
The bank said that effective on that date, customers who attempt to use a Chase card to make a payment through a third party BNPL plan, such as Klarna or AfterPay, will have those payments declined.
Chase does offer a BNPL solution of its own called “Chase Pay in 4,” in which cardholders can split eligible debit card purchases of between $50-$400 that are made within the last seven days into four equal payments, with the first payment due two weeks after the customer opts in.