eBay MasterCard Creates eBay Layaway Plan

July 28, 2007

If you already know what you’re getting that special someone for Christmas and can get it on eBay then a new eBay MasterCard promotion might just be your own layaway program!

Layaway Plans
I first learned about layaways as a military brat, during a summer job at AAFES.  The store offered an option where soldiers or dependents could make installment payments on an item they wanted to buy but didn’t have the cash for.  We would hold onto an item in the back stockroom, they would make monthly payments, then pick it up when it was paid off.

eBay Layaway
You can make your own layaway plan with this promotion that offers no monthly payments and deferred interest until 2008 on your eBay purchase over $50 when made on an eBay


MasterCard.  The promotion is only open to first time eBay MasterCard customers and you have to pay off your balance by Jan 1, 2008 to avoid “finance charges assessed on the promotional balance from the date of purchase”. 

Unlike a traditional layaway plan you will take possession of the item right away but it will likely be out of sight until December, hidden away from package pinchers.  You’ll have to save enough money each month between now and then to pay off the item before Jan 1, 2008 but you can keep the cash in your ING Direct account and earn interest on it while you save!

eBay Mastercard
The nice thing about the new eBay MasterCard card is that its fully integrated with PayPal and will show up in your PayPal wallet. You have to already have or sign up for a PayPal account in order to apply for the card.

The card does offer a rewards program, for every dollar you spend, you receive one point which can later be redeemed for eBay purchases but it’s unclear how to redeem reward points and how they equate to dollars. The Mastercard comes in three different designs and allows you to customize your card with your eBay user id if those kinds of things float your boat.

Plan Ahead for Christmas
The card itself isn’t all that great or different than any other credit card; it’s the no monthly payments and deferred interest promotion that caught my eye.  Items on eBay tend to be cheaper than stores and most places online so you can use the promotion to save money on a Christmas gift and force yourself to start saving up for it now!


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Ben Edwards, the founder of Money Smart Life, saved up enough to buy a Nintendo back when he was 12 years old. When he used the money to buy shares of Wal-Mart stock instead, he knew he wasn't like the other kids... His addiction to personal finance has paid off for his family and now he's helping you to afford the life that you want. Check him out on the web at Google Plus, Twitter and Facebook.

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4 Responses to eBay MasterCard Creates eBay Layaway Plan

  • Ben

    Tim, I agree with you, if someone doesn’t have the discipline to pay it off before Jan 1, 2008 they absolutely should not even consider it.

    The point I was trying to make was buying something for a lower price on eBay now before demand is high and prices go up during the holiday season, then putting aside some money each month to pay it off before the end of the year.

  • john

    hmm interesting that ebay creates their own credit card. http://www.comparetheloan.co.uk

  • Tim

    i’m not following the ebay thing as a layaway. they are couching it in layaway terms when it is in fact a no interest no payments deal until JAN 1, 2008. have a hiccup before then or payment doesn’t get in on time before the promotion end date and all the interest ACCRUED is added onto your card. i’m sure your IR % will also go to default values as well. being a PF blog, i’m surprised at your cavalier attitude about this deal. there are plenty of 0% promo credit cards that do not have the interest accrued portion added to it. moreover, there are plenty of cards that will give you cash back rather than confine you to ebay purchases.

    at least with real layaway you aren’t buying something that you have the chance of defaulting on or getting caught in the credit card trap. now this doesn’t meant the ebay card isn’t a deal if you can manage it or if you cannot get any other 0% promo offer on purchases.


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