# Shop Now, Pay Later



## Hooked (9/8/19)

I came across something very interesting on Capital Vapes' website when I was browsing the Internet in search of ... guess! 

@BoogaBooga I hope you don't mind my screenshot of one of the items on your site, but I would like people to know about this, because it could help them a lot.

With each item on the site, you can split your payment into 4 interest-free payments through payflex. I've never seen this before, but perhaps other peeps have?

This is a screenshot from Capital Vapes' site. @BoogaBooga I hope you don't mind!




I clicked on the "learn more" and it took me to this:






No interest, no fees,
4x instalments over 6 weeks
How it works
Payflex lets you get what you need now, but pay for it over four interest-free instalments. You pay 25% upfront, then three payments of 25% over the following six weeks.




Buy online as normal





At checkout, choose Payflex as your payment method





Follow our super fast online vetting process, and pay your first 25% with your debit or credit card





Get your stuff right away, and pay 25% every two weeks


You must be over
18 years old
You must have a valid
South African ID
You must have a debit or credit card
issued by Visa or Mastercard
Still want more information? Click here

I think it would be a grand idea for all the local vendors at VapeCon to have this system. 

It's an advantage for the vapers because they will be able to increase their spending power on items with really good prices. 
It's an advantage for the vendors because sales are likely to increase.
@Silver @Rob Fisher Perhaps this Payflex system is already known by vendors, but if not, it might be an idea to spread the word quickly before VapeCon?

*EDIT:* Corrected BoogaBooga's name

Reactions: Like 1 | Winner 1 | Informative 3


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## Silver (9/8/19)

Thanks @Hooked 
I’ve never seen Payflex before
Thanks for bringing it up

Certainly makes sense if someone is cash strapped but needs to buy something now. I think it could be used irresponsibly by buyers to purchase more than they will be able to afford in the future but I suppose in vaping it can be helpful. Sometimes there’s a mod that you can’t afford and in two weeks when you can afford it, they will be sold out. So I can see it’s a good thing

Very interesting...

Reactions: Like 1 | Agree 4


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## Jengz (10/8/19)

So interesting, interest free makes this key and also very beneficial to buyers.
Wonder how's the vetting process and what it entails. Gonna check it out for interest sake! Thanks @Hooked

Reactions: Like 1 | Agree 2


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## Adephi (10/8/19)



Reactions: Agree 3 | Funny 2


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## Silver (10/8/19)

I just visited that Payflex site and checked it out.

What's interesting is that *they take the risk*. So the vendor gets paid the full amount up front and they collect the remaining 3 installments from the customer. Effectively, they are a credit organisation of sorts. At least that is how I understand it.

They don't mention their fees to the vendor on their site - you have to contact them - so I assume its quite steep.

Let's see how this goes. I assume they would need to expand very carefully to avoid too many bad debts.

PS - they do say its only for online transactions with a limited (but growing) integration capability to various payment gateways. So I am not sure how easy it would be for many exhibitors to quickly pick this up before VapeCon.

Reactions: Like 3


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## Jengz (10/8/19)

Silver said:


> I just visited that Payflex site and checked it out.
> 
> What's interesting is that *they take the risk*. So the vendor gets paid the full amount up front and they collect the remaining 3 installments from the customer. Effectively, they are a credit organisation of sorts. At least that is how I understand it.
> 
> ...



Interesting, I wonder if the credit given is also regulated under the NCA or is this a loophole in the law? Because surely the vetting process has to be quite intensive for one to qualify for this sort of credit.

No risk to buyer or seller, risk fully transfered to a 3rd party is actually close to a no brainer purchase for most consumers, however, maybe there's heavy implications if one does not manage to pay which will most likely be found in fine print. 

Seems so strange yet so interesting.

Reactions: Like 3 | Agree 1


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## Silver (10/8/19)

Jengz said:


> Interesting, I wonder if the credit given is also regulated under the NCA or is this a loophole in the law? Because surely the vetting process has to be quite intensive for one to qualify for this sort of credit.
> 
> No risk to buyer or seller, risk fully transfered to a 3rd party is actually close to a no brainer purchase for most consumers, however, maybe there's heavy implications if one does not manage to pay which will most likely be found in fine print.
> 
> Seems so strange yet so interesting.



If you read the FAQ on their site, they say you as a customer have to have an ID and have a credit card.
I assume they (Payflex) can then do a quick credit check on you as to how your credit history is on your card. 
I also assume that they need to manage and monitor this very carefully to not get overexposed.

Reactions: Like 2


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## Silver (10/8/19)

I was wrong above
You can use a credit or debit card

But reading the FAQ for customers on their site, it seems they do a quick credit check on you using your ID and drivers license and address. And they limit you to R3,000 initially - and monitor it going forward.
I presume they would increase this amount as you show you can pay it off.

Here's a screenshot of some interesting points from their customer FAQ

Reactions: Like 2 | Informative 1


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## M.Adhir (10/8/19)

Eish. Vaping on credit. 
Dangerous move I feel.

Reactions: Agree 9


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## Silver (10/8/19)

M.Adhir said:


> Eish. Vaping on credit.
> Dangerous move I feel.



Agreed @M.Adhir 

My feeling is always if you dont have the cash then dont buy it.

The only thing I can see this helping with is that situation where something will sell out in a few weeks and you know you are going to have the cash in a few weeks time and if you dont get it now, you wont be able to or it will be a very long wait. But even that situation one could argue is questionable.

Consumers clearly want INSTANT GRATIFICATION (hence this Payflex service)

Reactions: Agree 5


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## Faraaz (10/8/19)

A little off topic but..

Does not seem like they make money out of this, besides maybe vendor fees

I smell something fishy here

Reactions: Like 2


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## Silver (10/8/19)

Faraaz said:


> A little off topic but..
> 
> Does not seem like they make money out of this, besides maybe vendor fees
> 
> I smell something fishy here



No they do @Faraaz
Nothing for nothing in this world
They dont say their fees on their website - but they refer to a merchant fee (I assume some kind of monthly fee based on volumes) and then a fee per transaction. They say one needs to inquire with them.

I would imagine if a vendor uses them the vendor will end up paying a lot more for a 4-transaction order than a single upfront order with the traditional payment providers.

Would love to know

Reactions: Like 2


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## M.Adhir (10/8/19)

Silver said:


> Agreed @M.Adhir
> 
> My feeling is always if you dont have the cash then dont buy it.
> 
> ...



I suppose as much as vaping became a hobby for me, and that's where it gets a bit costly, I still see it as a substitute for my 2 packs of camel filter per day. And I never would have bought those on credit.

Reactions: Like 1 | Agree 3


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## zadiac (10/8/19)

Mmmmm.......a certain "Samurai" something or other just popped into my mind? I can see trouble coming through the clouds.

Reactions: Agree 2 | Can relate 1


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## Adephi (10/8/19)

M.Adhir said:


> Eish. Vaping on credit.
> Dangerous move I feel.



Absolutely agree.

I use to buy smokes on credit when the months were tight. Got me in all sorts of trouble and for what?

After almost 2 years of vaping I got a drawer full of juice, wires, cotton and batteries. 5 mods in rotation with 2 backups. So there is no reason for emergency credit to be used anymore on nic addiction. And I don't mind helping somebody out. I do it all the time at work. 

Just another benefit of the diy aspect of vaping.

Reactions: Like 4


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## Hooked (10/8/19)

Silver said:


> I just visited that Payflex site and checked it out.
> 
> What's interesting is that *they take the risk*. So the vendor gets paid the full amount up front and they collect the remaining 3 installments from the customer. Effectively, they are a credit organisation of sorts. At least that is how I understand it.
> 
> ...


 @Silver Yes I also understand it that they take all the risk so it's clear sailing for the vendor - but one would need to establish what commission/fee is charged to the vendor.

I didn't see that it's for online transactions only. That's a pity - it won't be able to be used for VapeCon then. But I still think it might be a good thing for vendors to have this system on their site. It is rather tempting to the customer, isn't it?

What's interesting is that I think they mention that it can be used for both debit and credit cards. That might be a huge help for people who don't have/use credit cards, but want to snap up a bargain when they see it.

I'd love to know how it works in reality, both from a vendor's point of view (perhaps @BoogaBooga could give us some feedback) and from a customer's point of view (@Jengz said he was going to try it, out of curiosity. Looking forward to your feedback Jengz!)

The funny thing with all of this is that I can hear my late Dad's voice, loud and clear, saying "If you want something, you save for it. You don't buy on credit just because you want it now." That's true, of course, but sometimes a bargain can not be missed!

Reactions: Like 3


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## Jengz (10/8/19)

Hooked said:


> @Silver Yes I also understand it that they take all the risk so it's clear sailing for the vendor - but one would need to establish what commission/fee is charged to the vendor.
> 
> I didn't see that it's for online transactions only. That's a pity - it won't be able to be used for VapeCon then. But I still think it might be a good thing for vendors to have this system on their site. It is rather tempting to the customer, isn't it?
> 
> ...


I agree 100% with your dad, I have never in my life bought anything on credit until I had to get a credit card, I then opened a woolies account and bought groceries weekly and paid it off weekly to get a credit rating.

Since then I have again never purchased anything on credit, all I wanted to do here is check how their vetting process works, just out of curiosity.

Reactions: Like 4


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## Silver (10/8/19)

Jengz said:


> I agree 100% with your dad, I have never in my life bought anything on credit until I had to get a credit card, I then opened a woolies account and bought groceries weekly and paid it off weekly to get a credit rating.
> 
> Since then I have again never purchased anything on credit, all I wanted to do here is check how their vetting process works, just out of curiosity.



Lol, if only they knew how enthusiast vapers NEED every device and juice NOW.

Reactions: Like 2 | Thanks 1


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## BoogaBooga (10/8/19)

Hi Everybody

We implemented PayFlex as a secondary option for a credit solution as emergencies do happen and I felt that I would give it a try. Not a fan of idea but sitting down and thinking about it, its not much different than using the budget function on a credit card. Difference being that it is over 6 weeks interest free. It has proven to be successful so far and we have done a few transactions in this way.

Credit vetting is done in 20 seconds using the customers ID number. The vendor gets the money minus the fees for the transaction. Offhand I cant remember the percentage but it is pretty hefty. 

All in all our online orders are still 99% percent done with immediate payments instead of PayFlex but the option is there to be used if the need arises. At this point in time its only an online payment gateway.

Vaping and for that matter anything done on credit is usually not the best idea but in the trying economic climate it is another option for a customer to get what he/she needs. 

There are really not a lot of people using this option at all compared to the more traditional ways of paying for an online order be it EFT or instant EFT.

Reactions: Like 6 | Thanks 1 | Informative 3


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## Mollie (12/8/19)

M.Adhir said:


> Eish. Vaping on credit.
> Dangerous move I feel.


I buy most of my goods R1500 and above on my credit card 
Thats why i love budget lol

Sent from my ANE-LX1 using Tapatalk

Reactions: Like 1


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## Hooked (12/8/19)

The vaper said:


> I buy most of my goods R1500 and above on my credit card
> Thats why i love budget lol
> 
> Sent from my ANE-LX1 using Tapatalk



@The vaper But you're charged interest aren't you? So what you end up paying for the goods is much more than it should be.

Reactions: Like 2


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## Hooked (12/8/19)

Jengz said:


> I agree 100% with your dad, I have never in my life bought anything on credit until I had to get a credit card, I then opened a woolies account and bought groceries weekly and paid it off weekly to get a credit rating.
> 
> Since then I have again never purchased anything on credit, all I wanted to do here is check how their vetting process works, just out of curiosity.



Yes I understand that @Jengz and I'm looking forward to your research!

It's actually a dreadful world that we live in, that a person is forced to buy on credit in order to get a credit rating. The really good guys who pay cash for everything are treated like criminals because they don't have a credit rating. 

I also don't buy on credit. I do use my credit card, but I keep a credit balance in it.

Reactions: Like 2


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## Hooked (12/8/19)

BoogaBooga said:


> Hi Everybody
> 
> We implemented PayFlex as a secondary option for a credit solution as emergencies do happen and I felt that I would give it a try. Not a fan of idea but sitting down and thinking about it, its not much different than using the budget function on a credit card. Difference being that it is over 6 weeks interest free. It has proven to be successful so far and we have done a few transactions in this way.
> 
> ...



Thanks so much for your input @BoogaBooga. It doesn't seem fair though for the vendor to be penalised with a "hefty" transaction fee. Why should you lose profit just because a customer wants something which he can't afford right now?

Reactions: Like 2


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