Zip guarantees that your purchases will either always be interest-free or have a term of at least 3 months without interest attached. Whether your account is interest-bearing or not depends on which type of account you use to make the purchase: Zip Pay or Zip Money.
Zip Pay is interest-free, always! So for the life of your account, your purchases through Zip Pay will never incur interest.
Zip Money is an interest-bearing account, but only after the interest-free period on an order expires. These periods vary depending on which merchant you shop with and how much you spend. Interest-free periods start at 3 months and can extend up to 50 months!
To confirm your interest-free period, please reach out to the merchant that you are making the order with.
When activating your account, your contract will indicate the interest-free period you will receive on your first purchase. The interest-free period applies to the actual purchases on your account rather than the credit limit itself, so it will vary from purchase to purchase.
"Why does it say 3 months when I was told it was more than that?"
If you do not have an order attached to your application, no promotional interest-free period will be stated. Only once you register your account and make a purchase, the promotional interest-free period from that purchase will apply.
After the interest-free period ends, our standard annual interest rate applies of 19.9% per annum will be charged on the remaining order balance. Please check your contract to confirm your interest rate.
"How is interest charged?"
After the interest-free period ends, interest will be accrued daily and charged to your account at the end of each month. This charge will be displayed on your statement so you can keep track of how much interest has been applied.
Follow these steps to check the interest-free period that applies to your order:
- Login to your account
- Go to 'Recent Activity'
- Find the purchase and you'll be able to view when the interest-free period expires on that purchase.