Amazon Layaway is a convenient payment program for Prime Day

Amazon Prime Day AM AH 1

Amazon‘s second Prime Day sales event of the year is approaching. The event, called Prime Big Deal Days, will take place on October 10 and 11. The 48-hour sale will offer a huge number of limited-time deals and discounts across a wide range of products. In fact, a few early deals are already available. We thought this was the perfect time to remind you about Amazon Layaway.

Amazon Layaway lets you reserve Prime Day deals

If you’re a frequent Amazon shopper, you might be already familiar with Amazon Layaway. As the name suggests, it’s a layaway program that lets you pay off a product in installments. Available for Prime members, this program can be used to reserve Prime Day deals. If you’re tight on budget, you can leverage Amazon Layaway to grab your favorite deal during Prime Big Deal Days without paying off the product at once. So how does this work, let’s find out.

Before we proceed, note that not all products on Amazon are eligible for layaway. You’ll see a “Reserve with Layaway” tag on product pages for items that you can purchase through this program. Amazon may also show you this stage when you add eligible items to your cart. Once you’re ready to checkout, select “Reserve with Layaway” for every item you want to buy on a layaway program.

Amazon will now split the total order amount (excluding taxes and shipping charges if any) into five equal parts, i.e. each part is 20 percent of the total value. You’ll have to pay the first part before checkout. Once the payment is successful, the retailer will reserve the items for you at the current price, though the items aren’t shipped to you. You need to complete the payment to get them.

You will be billed the remaining amount in four installments due every two weeks. So you have eight weeks to pay off the product. The final installment might be of a slightly larger amount depending on taxes and shipping charges. Once you have completed the payment, Amazon will ship the products to your address. With the layaway program, you won’t miss out on your favorite Prime Day deals even if you’re on a tight budget during the sale.

Amazon won’t charge you interest, and you can pay off early

If you’re wondering, Amazon Layaway doesn’t require you to pay interest or additional fees. Since you don’t get the product until you make the full payment, you aren’t financing your order. The retailer doesn’t even check your credit, so don’t worry about it affecting your credit score. You won’t be charged extra for missing a scheduled payment either. Amazon will remind you about it, and you must make the payment before the next bill is due.

If you fail to make the payment within two weeks of the due date, i.e. before the next scheduled payment, Amazon will cancel your layaway plan. It will refund you all the money you have paid so far. Keep in mind that you can’t start a new layaway plan if you already have an overdue payment (via CNet). So making timely payments will be beneficial to you if you want to purchase more items through this program.

Amazon also lets you pay off the order early. You can do so from the My Orders page under your Amazon account. Go to Order Details > Manage Payment Plans, and then click on Pay early to settle the payment. Your order is shipped immediately after you complete the payment. If you have a change of mind and no longer want the product, you can cancel your layaway plan and get a refund of the money you have already paid.

Amazon’s Affirm payment plan is different

Some of you might be confusing Amazon Layaway with the company’s Affirm payment plan. The latter is a “buy now, pay later” program where you will be financing your order. You will get your items immediately, but you must go through a credit approval process first. Moreover, this program offers varying financial plans, some of which may come with interest as well.

Amazon’s Affirm payment plan could also accrue additional fees and harm your credit score if you miss a payment. If you can wait about two months for an item, Amazon Layaway might be the payment program you should choose this Prime Big Deal Days. Unfortunately, it isn’t available for orders shipping to Connecticut, Illinois, Maryland, Ohio, Pennsylvania, and Washington, DC. But Prime members in the rest of the US can take advantage of the program.