Can You Split Credit Card Payments?

credit card payments
credit card payments

Unarguably, credit cards are useful financial tools for day-to-day expenses. They come in handy for making a heavy purchase or paying off debt. Sometimes, people want to make a big purchase but don’t have enough balance on their credit cards. It can be plausible that funds are present in two or more credit/debit cards. However, a single credit does not have the entire amount for making a big purchase. In such a situation, people look for split card payment options. As a responsible cardholder, one should know the split payment system. Read on to learn more about split credit card payments.

Understanding the concept of split payments

When payments are from two or more sources, they are called split payments. Two or more credit/debit cards are needed for a split payment. A credit card and a debit card can be used for making split payments. Similarly, other combinations of payment sources are used for split payments. Let’s understand the concept of split payments with an example. Say a customer has INR 60,000 on one of the cards. However, the cost of an item is INR 80,000. For purchasing a particular item, INR 60,000 can be paid via a credit card. The remaining amount for the item can be paid via another debit or credit card. Split payments can be beneficial when partial amounts are available on different credit/debit cards. The payment is distributed between two or more sources.

Do merchants allow split credit card payments?

Credit card split payments aren’t allowed by default. Merchants will have to go through hassles after allowing split payments via credit/debit cards. They will have to process payments from each credit card. As a result, they will end up wasting more time processing a credit card payment. Not to forget, merchants pay a processing fee to collect customer payments via cards. The processing fee is offered to the credit card issuer for managing the customer payment. No merchant would want to pay processing charges for different cards by allowing split payments. However, it does not mean that a merchant will always say nada to split payments.

Sometimes, the customer is genuinely worried because they have lower limits on their credit card. However, the customer has complete payment but in multiple cards. At the end of the day, the merchant wants to sell their products/services and boost customer satisfaction. In such a situation, the merchant might allow split payments. It can only be plausible at a physical store. The policy for split payments can change from one merchant to another.

As discussed above, split payments are plausible only at physical stores. While making an online purchase via a credit card, the split payment facility might not be applicable. It is because digital payments are more complex than cash payments or POS swipes. For the same reasons, split payments are not allowed for a credit card payment online. For online payment, a secure/encrypted payment channel is opened. The payment channel/window is unique for each payment and disappears after the payment is completed. Therefore, digital payment platforms cannot support split payments via cards.

Pros of split payments in 2022

As informed above, spit payments are not allowed on digital payments. However, a physical store might allow you to split the charge between two or more cards. The advantages of split payments via two or more cards are as follows:

  • Split payments increase the convenience level for the customer. They can utilise their savings account, debit card, and credit card to make a purchase. Other sources can be used if there are insufficient funds on the credit card.
  • One must have heard of the credit utilisation rule. No one should completely exhaust the credit limit. With split payment, you can easily maintain the desired credit limit. The payment can be divided into two cards without exhausting the limit of any card.
  • Split payments allow individuals to go out and make a big purchase. Even if they have a lower credit limit, they can use multiple cards and accounts to make payments. Split payments can also be helpful during emergencies. Consider a hospital that allows individuals to make split payments. Patients can use multiple sources during emergencies to make medical bill payments.

How to make a big purchase without splitting?

The merchant can disallow split payments for making a big purchase. In such a situation, people can choose to convert their purchases into EMIs. For credit card payment online, many merchants offer the EMI option. To purchase any item, one will have to pay a small amount every month or quarter. Customers can take the item home even after paying a small amount. For more clarity, enquire the merchant about the split payment system. Protect exhaustion of your credit limit by making splitting the payment! 


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