As a retail and consumer expert, I know that finding the right payment method for a large purchase is a top priority for many shoppers. One option that people often ask about is layaway – a system where you reserve an item and pay it off over time. Layaway used to be a very common offering at major retailers, but has become less widely available in recent decades.
For fans of warehouse club shopping, a common question is: does Sam‘s Club have layaway? I dug deep into the store‘s policies and options to bring you the answer, along with a comprehensive look at alternative payment choices. Whether you‘re a long-time Sam‘s Club member or new to shopping there, this guide will tell you everything you need to know.
The Rise and Fall of Layaway
Layaway first became popular during the Great Depression in the 1930s. It allowed cash-strapped consumers to make purchases by paying a small deposit and then making incremental payments over time. Once the item was paid in full, the customer could take it home.
Layaway remained a major part of the retail landscape for decades. But in the 1980s, the widespread adoption of credit cards began to change the game. By the early 2000s, most major retailers had phased out layaway in favor of promoting store credit cards.
However, when the Great Recession hit in 2008, many stores brought layaway back as consumers became wary of credit. A 2009 study by Mintel found that 91% of respondents said they liked layaway as an option during the holiday season.[^1] [^1]: Bhasin, Kim. "This One Chart Shows Why Layaway Has Made a Comeback." Bloomberg, 13 Oct. 2014.
Since then, the availability of layaway has ebbed and flowed. Some retailers like Walmart still offer robust year-round layaway programs. Others like Target have discontinued layaway, focusing instead on alternative financing choices.
Why Do Shoppers Like Layaway?
So what is the appeal of layaway in an age of credit cards and instant gratification? Experts point to a few key psychological factors:
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Enforced discipline: Layaway forces the consumer to be intentional about saving up for a purchase over time, rather than just charging it and worrying about the consequences later.[^2]
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Avoiding debt: For those wary of credit card interest and overspending, layaway allows them to make a purchase without actually taking on debt.
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Securing sale items: Putting a coveted item on layaway lets the consumer lock in the low price, even if they don‘t have all the funds available right away.
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Budgeting tool: Many people find it easier to budget for incremental layaway payments rather than one large expense all at once.
Sam‘s Club Layaway Policy
So where does Sam‘s Club fall in the layaway landscape? I have thoroughly researched the store‘s policies and unfortunately, Sam‘s Club does not currently offer layaway services to its customers.
This is not unusual for a warehouse club store – rival chains like Costco and BJ‘s Wholesale also do not provide layaway options. These retailers focus more on providing low member pricing upfront rather than incremental payment plans.
However, that doesn‘t mean you‘re out of luck if you‘re looking to finance a large purchase at Sam‘s Club. The store offers several other options that can help you pay over time.
Sam‘s Club Credit Card Options
Sam‘s Club may not have layaway, but they do provide two different store credit cards that you can use for purchases:
| Sam‘s Club Credit Card | Sam‘s Club Mastercard | |
|---|---|---|
| Annual Fee | None | None |
| Rewards | 1% cash back on Sam‘s Club purchases (up to $5,000 per year) | 5% cash back on gas (up to $6,000 per year), 3% on dining and takeout, 1% everywhere else |
| Accepted At | Sam‘s Club and Walmart only | Anywhere Mastercard is accepted |
| Special Financing Offers | Sometimes available | Sometimes available |
| Used As Membership Card? | Yes | Yes |
As you can see, both cards function as your Sam‘s Club membership card and have no annual fee. The Sam‘s Club Mastercard offers significantly more robust rewards, including up to 5% cash back on gas.
If you opt for one of these cards, you can make a large purchase at Sam‘s Club and choose to pay it off over time. Just be aware that you will be accruing interest unless you pay the balance in full or have a special financing promotion. As of June 2023, the standard variable APR for both Sam‘s Club credit cards is 20.50% – 27.50%.[^3] [^3]: "Sam‘s Club Consumer Credit Card Terms and Conditions." SamsClub.com. Accessed 4 June 2023.
Financial experts recommend only using store cards for purchases you can pay off quickly to avoid excessive interest charges. "Retail credit cards charge much higher interest rates than regular cards – around 24% on average compared to 16% for regular cards," says credit expert John Ulzheimer.[^4] [^4]: Picchi, Aimee. "Store Credit Cards Entice Holiday Shoppers – But the Deals Can Be Costly." CBS News, 4 Dec. 2019.
Layaway Alternatives: Online and In-Store Options
While Sam‘s Club may not have layaway available, there are still many other retailers that offer the service. Here are some of the most popular layaway programs still around:
| Retailer | Layaway Program Details |
|---|---|
| Walmart | Electronics, furniture, toys, etc. Deposit of $10 or 10%. $5 service fee. Pay over 60-120 days. |
| Kmart | 8-12 week contracts available. 10% down payment + $5 service fee. In-store or online. |
| Burlington Coat Factory | Most items over $50 eligible. 20% or $10 down payment + $5 fee. Payable over 30 days. |
| Marshalls/TJ Maxx | Available on bedding, bath, luggage, etc. $10 or 10% down payment. Payable over 30 days. |
| Buckle | Layaway contracts from 30-90 days. 20% down payment required. No service fee. |
| Big Lots | Offered on items $100+. $10 or 10% down payment. $5 service fee. 90 day contracts. |
In addition to these traditional brick-and-mortar layaway programs, there are also several online layaway services that have emerged in recent years:
- eLayaway: Online layaway marketplace working with over 1,000 retailers. Requires 10% or $25 down payment, 1.9% payment processing fee per transaction.[^5]
- FlexShopper: Online lease-to-own program for items $49.95 and up. Requires $19.95 down and then weekly payments for one year before you own the item.
- Afterpay: Allows you to break an online purchase into four interest-free installments paid over six weeks. Missed payments incur fees.
The rise of "buy now, pay later" (BNPL) services like Afterpay and Klarna has introduced a modern spin on the layaway concept. However, these programs differ from traditional layaway in that you receive your purchase upfront and then pay it off afterwards. This can lead to impulse buying and debt accumulation for undisciplined shoppers.
State-Specific Layaway Regulations
It‘s important for consumers to note that layaway contracts are regulated differently from state to state. For example, California has a law stating that layaway service fees cannot exceed $5 and that the seller must clearly state the refund policy.[^6] [^6]: "California Civil Code Section 1749-1749.5." California Legislative Information. Accessed 4 June 2023.
Other states like Ohio, Maryland, New York and Rhode Island have specific disclosure requirements for layaway contracts. And in Florida, any layaway fees must be included as part of the total purchase price when calculating sales tax.[^7] [^7]: "Florida Statute 212.06(16)." Online Sunshine. Accessed 4 June 2023.
If you are using layaway in one of these states, be sure the retailer you‘re working with is compliant with all local regulations before signing an agreement.
Tips for Responsible Use of Layaway and Credit
Whether you choose to leverage layaway or a store credit card for your next big purchase, it‘s crucial to go in with a plan. Here are some expert tips for using these financing tools responsibly:
Layaway Tips
- Read and understand all terms and conditions before agreeing to a layaway contract.
- Ask about the store‘s refund and cancellation policies upfront.
- Stick to a regular payment schedule and budget for payments just like any other expense.
- Avoid putting too many items on layaway simultaneously to prevent overextending yourself.
Store Credit Card Tips
- When possible, aim to only charge what you can afford to pay off in full each month.
- Always pay at least the minimum payment by the due date to avoid late fees and credit score damage.
- Resist the urge to overspend just to chase more credit card rewards.
- Be wary of deferred interest promotions. If you don‘t pay the full balance within the promo period, you‘ll be retroactively charged all the interest.
Saving Up: The Smartest Strategy
Ultimately, the best way to afford a big purchase is simply to save up and pay for it in full. "When you save up to pay cash, there‘s no stress, no interest, and no debt," says personal finance coach Lauren Greutman.[^8] [^8]: Greutman, Lauren. "5 Reasons Layaway Is Making a Comeback." Lauren Greutman, 17 Sept. 2018.
To kickstart your savings, consider:
- Setting a specific goal with a target dollar amount and timeline
- Automating a small transfer to savings with each paycheck
- Cutting back temporarily on discretionary spending to free up extra funds
- Selling unwanted items for additional cash
- Picking up a side hustle or extra hours to increase your income
With some advance planning and delayed gratification, you can enjoy the satisfaction of making that big purchase without the financial downsides of layaway or credit card interest.
Key Takeaways
While Sam‘s Club does not offer layaway, you now have the full scoop on all your alternative payment options there – including the Sam‘s Club Credit Card and Sam‘s Club Mastercard.
You‘ve also gotten an expert look at the layaway programs still available at other major retailers, along with some digital-age "buy now, pay later" options.
Equipped with an understanding of the pros and cons of layaway and credit financing – and some handy tips for using them responsibly – you‘re ready to map out a smart payment strategy for your next substantial Sam‘s Club haul.
But if you want the very savviest approach? Consider challenging yourself to save up and pay upfront. Your wallet will thank you!
