Can You Buy Groceries With Zip? What to Know

Zip is a Buy Now, Pay Later (BNPL) service that allows consumers to acquire goods and services immediately and pay over time through scheduled installments.

How to Use Zip for Groceries

Using Zip for grocery purchases is possible for both in-store and online transactions.

In-Store Purchases

For in-store grocery shopping, use the Zip mobile application. After opening the app, navigate to the in-store tab and enter the total purchase amount. The app generates a virtual card, which you can add to your smartphone’s digital wallet (e.g., Apple Pay or Google Pay). Complete the transaction by tapping your phone at checkout. Purchases may require a minimum amount.

Online Purchases

When ordering groceries online, the process also begins within the Zip app. You can search for your preferred grocery retailer or delivery service directly in the app. Once you have filled your online cart, you select Zip as your payment option during checkout. The app facilitates the payment process, sometimes by generating a single-use virtual card for enhanced security, which can be entered into the merchant’s payment portal. Major grocery retailers and delivery services, including Instacart, Walmart, Costco, Whole Foods, and Amazon, are examples of where Zip can be utilized.

Financial Considerations of Using Zip

When using Zip for grocery or any other purchases, understanding the financial terms is important. The standard repayment structure involves dividing the total purchase amount into four equal installments. The first installment is due immediately at checkout, and the subsequent three payments are automatically charged to your linked debit or credit card every two weeks, completing the repayment over a six-week period.

While Zip Pay is often promoted as interest-free, other fees can apply. An automatic installment fee may be charged per purchase, which can vary. This fee is typically disclosed upfront before you finalize your payment plan.

For instance, a purchase might include an installment fee ranging from $1 to $7.50, effectively increasing the total cost of your purchase beyond the initial price.

A monthly account fee of $9.95 may also be assessed if you carry an outstanding balance at the end of the month. This fee is waived if your entire outstanding balance is paid in full by the due date.

Missing a scheduled payment can result in late fees, which typically range from $5 to $10, depending on your state and the specific Zip product used. These late fees are generally applied after a grace period, often around seven days following the missed due date.

Additionally, a dishonor fee, typically $5, may be charged if a scheduled payment is rejected by your bank due to insufficient funds. Consistent missed payments can lead to your account being paused or frozen, preventing further purchases, and may eventually impact your credit score if the debt is reported to credit bureaus or sent to collections.