Split Payments: Can I Use 2 or More Credit Cards for A Transaction in Singapore?

Splitting a single purchase across multiple credit cards is generally feasible when you shop at a physical store. However, the option to do this online is less consistent. You may proceed all the way to the checkout page only to discover that the specific online retailer doesn't support splitting payments.

Here's a breakdown of what you should know about using multiple credit cards for one transaction.

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Am I able to pay with multiple credit cards?

The short answer is: Yes, it’s possible, but only in specific cases. Physical stores in Singapore such as Courts, Harvey Norman and IKEA may allow split payments, depending on their POS systems. 

However, if you are making an online purchase, you will find that split payments aren’t commonly offered. Some merchants may accept split payments through PayPal if they support the option, but it’s rare. If there’s a pressing reason you wish to split the total cost of your transaction between multiple credit cards, you can work around this by purchasing store credit (which may come in the form of a gift card) with one credit card and using it in combination with another payment method. 

Note that major e-commerce platforms including Shopee, Lazada and Amazon SG do not support split payments per se. However, you will find 0% instalment plans available, whether that is supported directly by the e-commerce platform or through a credit card issuer. Buy Now Pay Later (BNPL) platforms like Atome and Grab PayLater present another option for cutting up the cost of a single purchase.

>>MORE: Buy Now Pay Later (BNPL) platforms in Singapore

Is it wise to split a payment between credit cards?

There are situations where dividing a single payment across several credit cards can be a practical approach, such as when you need to cover the cost of a large expense like a home renovation or a holiday. Here, your decision on which credit card to use and how to split the expense can vary depending on any rewards you may be eligible for.

For instance, if you have recently signed up for a new credit card, there may be a required minimum spending to qualify for a welcome bonus. In addition, some cashback credit cards require you to spend a minimum amount monthly to get your rewards. In such a case, you may wish to split the payment of a large expense across the two cards to maximise your rewards. Or one of your credit cards could come with a credit limit lower than the total cost of your transaction, necessitating a split.

While splitting payments can make sense at times, it isn't always the wisest course of action, particularly if you are unable to pay off the balances promptly. When that happens, not only will you incur interest charges on two separate cards (which can quickly snowball if you carry the balances over each month), you would also be maximising the credit limits on both cards. This can negatively impact your credit utilisation rate, which will be reflected in your financial profile on Credit Bureau Singapore (CBS).

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Alternative solutions

If you frequently find yourself needing to split payments across multiple credit cards, it may be worth asking your credit card issuer for a higher credit limit on one of your existing cards. There's no harm in asking, and it won't negatively affect you if your request isn't approved.

If you have multiple cards from the same issuer, another option is to request a credit limit reallocation. This involves asking the issuer to move a portion of the credit line from one card to another. For instance, you could ask them to transfer $500 from your card with a $1,000 limit to another card with a $2,000 limit.

Consider these alternatives if your primary goal in splitting payments is to finance a significant purchase over time:

• Most major banks in Singapore offer 0% instalment plans. Some of these plans include OCBC PayLite, DBS My Preferred Payment Plan and UOB SmartPay. Keep in mind that these plans usually come with a processing fee.

• Make use of BNPL providers such as Grab PayLater, ShopBack PayLater and Atome. These platforms allow you to slice your purchase into a few manageable instalments, all at 0% interest. Keep in mind that if you fail to make your repayments according to schedule, you will be liable to pay additional fees.