CandleFocus Glossary Editor
However, since the recession of the late 2000s, they have risen in popularity, with both brick-and-mortar retailers and online merchants beginning to offer such payment options.
Layaway programs differ in terms of their payment requirements and restrictions. Generally, the customer makes a deposit on the item when it is first selected and then makes bi-weekly or regular payments until all of the offered merchandise is paid in full. The customer then usually has a limited time period in which to take the merchandise or their deposit will be lost. For example, customers may have two to four weeks to take their purchase from the store or be penalized.
It is important to note that layaway payments are entirely non-refundable—unless the item is unavailable for pick up or the store cancels the program—and retailers may restrict eligibility for the program, such as having minimum payment requirements. Also, additional fees may be charged for services rendered—such as restocking fees if customers return layaway items or fees for late payments. It is also important to mention that organizations like the Salvation Army and Goodwill will even accept layaway donations.
Overall, layaway is an agreement wherein customers select merchandise and pay for it over a period of time with total payment being due a set date prior to shipment or local pickup. This method of payment provides flexibility and convenience for customers, allowing them to purchase items over time rather than paying in full during one transaction. While they may be subject to restrictions and fees, layaway policies have made a resurgence since the recession of the 2000s and may be a viable option for those with limited or fluctuating incomes.
Layaway programs differ in terms of their payment requirements and restrictions. Generally, the customer makes a deposit on the item when it is first selected and then makes bi-weekly or regular payments until all of the offered merchandise is paid in full. The customer then usually has a limited time period in which to take the merchandise or their deposit will be lost. For example, customers may have two to four weeks to take their purchase from the store or be penalized.
It is important to note that layaway payments are entirely non-refundable—unless the item is unavailable for pick up or the store cancels the program—and retailers may restrict eligibility for the program, such as having minimum payment requirements. Also, additional fees may be charged for services rendered—such as restocking fees if customers return layaway items or fees for late payments. It is also important to mention that organizations like the Salvation Army and Goodwill will even accept layaway donations.
Overall, layaway is an agreement wherein customers select merchandise and pay for it over a period of time with total payment being due a set date prior to shipment or local pickup. This method of payment provides flexibility and convenience for customers, allowing them to purchase items over time rather than paying in full during one transaction. While they may be subject to restrictions and fees, layaway policies have made a resurgence since the recession of the 2000s and may be a viable option for those with limited or fluctuating incomes.