Sale Season Starts: Should You Buy Through BNPL, Credit Card, Or Cash?

As the festive season sales kick off ahead of Durga Puja, Dussehra, and Diwali, people are flocking in to check out different items on sale on the popular e-commerce websites. However, buying a gadget, electrical appliance, clothes, home décor, or furniture involves much more than just exploring options and comparing prices to get the best deal. Equally important is deciding how to pay for the purchases. Should you buy it with a cash bonus you receive around the festivals or on credit to avail of the discount? Usually, discounts are offered on credit payment, and they are typically offered through credit card and Buy Now Pay Later (BNPL) facilities. 

The recent ongoing sales include Amazon Great Indian Festival (from October 8 for Prime members and from October 9 for all), Flipkart Big Billion Days (from October 8), Myntra Big Fashion Festival (from October 7, 2026), AJIO All Star Sale (from October 7), and Meesho Mega Blockbuster Sale (from October 9).

Credit Card EMI Facility

Credit card equated monthly instalments (EMIs) enable consumers to buy products in exchange for monthly instalments over a specified period. It is a revolving credit facility issued by banks and other financial institutions. Borrowers (credit card users) are required to repay this amount within the billing cycle, typically ranging from 20-50 days. If the payment is delayed, they need to pay interest on the used amount.

Buy Now Pay Later (BNPL) Facility

The BNPL facility is a short-term financing option under which consumers can opt to pay the purchase amount in instalments instead of paying at one go. These services are offered as a zero-interest option if payments are made on time. The credit period is usually 15-24 months. Any late payment could result in penalties and interest charges, and some providers may charge a processing fee or membership fee, adding to the cost of availing of the BNPL facility. So, these could also include hidden charges.

While buying an item at a discount during an ongoing sale, if you are confused about which option to use, this is what experts say.

Mukesh Pandey, founder and managing director, Rupyaapaisa.com, a Delhi-based financial consultancy platform, says, “If a consumer already has a credit card and can afford to repay it, it is usually better to use the credit card instead of BNPL just because of a sale. Credit cards often come with reward points, cashback and special discounts from merchants. BNPL may have hidden fees like processing charges or convenience fees.”

He adds: “The real decision should be based on the cost of the transaction, not just the discount that is shown. If BNPL is truly interest-free and has no charges, it can be helpful for planned purchases. Consumers must compare the actual cost before making a choice.”

What Is The Charge Structure In Credit Cards And BNPL?

Siddharth Mehta, co-founder and COO, Kiwi, a digital financial platform, says, “Generally, if a consumer pays the full outstanding amount by the due date, no additional interest is charged on regular credit card purchases, subject to the card’s terms and conditions. However, credit cards may also offer the option to convert a purchase into an EMI. Depending on the product and offer, interest may or may not be charged on that EMI.” 

Pandey adds, “Consumers should not look at the advertised rate of interest or the discount when choosing between credit cards or BNPL.” 

The costs of using a credit card include late-payment fees, EMI processing charges, foreign transaction fees, annual fees, renewal fees, and taxes. BNPL may include processing fees, convenience fees, platform fees, or late-payment fees, depending on the provider and the way the product is structured. An important point is to check if a zero-interest EMI has a fee or if the discount changes when EMI is selected. The best way is to compare the amount that will be paid, including taxes and all fees, before finalising the purchase, he adds.

How Should A Consumer Use These Two Credit Facilities While Buying Items From A Sale?

While buying your favourite item from these online sales, first consider buying only what is necessary instead of buying just because there is a discount. Once the to-be-purchased product is finalised, check all the discount offers available and whether you can purchase it with a downpayment. 

Pandey says, “Cash or an upfront payment can definitely help people stay focused on how much they spend because the money is gone and there is no need to pay it back later.” 

Says Mehta: “If you have the liquidity to pay the full amount when the bill is due, a credit card is almost always the better option. If you do not have the liquidity immediately, or want to take advantage of a valuable sale offer and spread the payment over time, BNPL can be a useful option. In short, use a credit card when you can pay in full; consider BNPL when you need repayment flexibility. The important caveat is that the credit card bill must always be paid in full and on time. The benefits of using credit work best when repayment discipline is in place. 

Pandey further says: “Using credit is not always a bad thing if it is carefully planned and completely paid back. The main point is to see the credit limit as a way to pay, not as money.” 

So, if an item is waiting in your cart for payment, think before clicking the make payment option, and also select the option that suits you.