PayPal Pay in 3

Getting Started

PayPal Pay in 3 is an interest-free loan that lets you split your basket into 3 payments, with the first due at time of purchase and subsequent payments due every month on the same date. It’s a great way to spread the cost of larger items or to cover emergencies, and is a helpful tool to manage your budget more effectively. Please note that Pay in 3 is a form of credit, so carefully consider whether you can afford the repayments and be aware of the possible impact of missing payments, including making other borrowing more difficult or more expensive.

We’re offering PayPal Pay in 3 to a growing number of our UK customers.

PayPal Pay in 3 is not available for certain merchants and goods. We may also decide not to offer PayPal Pay in 3 as a payment option in certain circumstances, such as where our checks suggest an increased risk of fraud or where data we hold suggests you may not be eligible. The checks we run are with an external credit reference agency. This search will only be visible to you and will not affect your credit score.

If you choose PayPal Pay in 3 as your payment method when you check out with PayPal, you’ll be taken through the application process. You’ll get a decision instantly, but not everyone is approved based on the checks we carry out.

Your plan will last 2 months in total. The first payment will be due at the time of purchase, followed by 2 further payments due each month after that.

To apply for PayPal Pay in 3, you’ll need to provide your:

  • Title
  • Phone number
  • Address
  • Date of birth
  • Payment details

Our decision making process is automated. We assess your financial position using a combination of the information you provided within your application, and information about your usage and history with PayPal to decide whether PayPal Pay in 3 is suitable for you at this time. We may also run a “soft” credit check with an external credit reference agency when you apply if we need more information to make our decision. This search will only be visible to you and will not affect your credit score.

There are no fees for choosing to pay with PayPal Pay in 3.

We know some customers may prefer not to see the Pay in 3 funding option within the PayPal checkout. If this includes you, you can contact us and ask us to change your account settings so that Pay in 3 is not shown. If you wanted to change this at a later date, you can contact us and we can change your settings to show Pay in 3 again.

We know that customers may choose to take this action for a variety of reasons. However, if you need further financial help and support, please check the FAQ below titled “Where else can I go for financial help and support?

Most Frequently Asked Questions:

Every PayPal Pay in 3 transaction will appear in your PayPal activity feed as the full purchase amount under the relevant merchant’s name as a ‘purchase’. This is to reflect the total purchase amount and is not reflective of the PayPal Pay in 3 instalment plan or any payments already made using your chosen debit card or bank account linked to your PayPal account. By using PayPal Pay in 3, PayPal pays the merchant upfront and spreads the cost to you over 3 payments. The first payment is taken on the date of purchase and the next two payments are automatically taken over the following two months. The first payment and subsequent two payments will each be reflected as separate transactions in your PayPal activity and represent the actual payments made towards your purchase.

When making a purchase with PayPal Pay in 3, if you pay with a debit card, we will place a pre-authorisation hold on your chosen card for an amount equal to one third of your total purchase amount. This will show as a pending authorisation in your PayPal account activity and also in the bank account of the card linked to your PayPal account. Once you complete your purchase with PayPal Pay in 3 and the merchant ships your goods, the pending authorisation will be removed and the initial payment will be withdrawn from your card. If you do not complete your PayPal Pay in 3 transaction, the pending authorisation will be automatically voided by PayPal within 24 hours of the pre-authorisation hold.

If you pay by debit card, and you don’t successfully make a purchase using PayPal Pay in 3, PayPal will automatically void the pending authorisation within 24 hours of placing the pre-authorisation hold. Funds will not be taken from your card if the PayPal Pay in 3 transaction was not completed.t

There are a number of reasons we may not have been able to complete your scheduled payment. For example, if the debit card used to sign up to your Pay in 3 plan has expired or if there were insufficient funds available in your bank account balance.

If you need to change your payment method, you can do so by logging into your PayPal account, going to PayPal Pay in 3, and selecting the PayPal Pay in 3 plan you want to change. There, you can click “Change” under “Payment Method”

Contact us for further assistance.

Your first payment will be charged at the time you make the purchase. After that, your 2nd and 3rd payments will be charged in the two subsequent months, on the same day of each month. For example, if you make a purchase on 5th May, your 2nd and 3rd payments will be due on 5th June and 5th July.

If a payment is due on a date which doesn’t exist in a month, such as the 31st February, then payment will be taken on the last day of that month.

We’ll send you a reminder by email or SMS 10 days before your payment is due detailing the amount of your payment, the payment due date and the funding instrument the payment will be taken from. You can see your payment schedule or make unscheduled payments at any time by logging into your PayPal account.

Using PayPal Pay in 3:

Just choose to pay with PayPal when you shop online, log into your PayPal account and, if it is an eligible transaction, you’ll see PayPal Pay in 3 as one of the available payment methods. After selecting it, you can apply for a PayPal Pay in 3 plan in a few simple steps, get an instant decision and finish checking out.

You can use PayPal Pay in 3 for eligible shopping cart amounts between £30.00 to £2,000.00. These values may vary from merchant to merchant.

PayPal Pay in 3 is available to use at most merchants where PayPal is accepted. Transactions can be made in all currencies that PayPal supports, not just GBP. For transactions not in GBP, PayPal will automatically convert the transaction amount to GBP at checkout before providing you with your PayPal Pay in 3 plan. Currency conversion charges will apply as set out in your PayPal User Agreement.

Yes, PayPal Pay in 3 is a separate feature from PayPal Credit. You can apply for Pay in 3, regardless of whether you have PayPal Credit. We will assess your application for Pay in 3 on the basis of internal and sometimes external data. Any purchases made using PayPal Pay in 3 are visible in the Pay in 3 section of your PayPal Wallet, separate from any PayPal Credit transactions.

Making a Payment:

Just log into your PayPal account, go to PayPal Pay in 3, and click on the specific PayPal Pay in 3 plan you want to see. The amount you still owe will be under “Remaining”.

We’ll also send you a reminder by email or SMS 10 days before your payment is due, detailing the amount of your payment, the payment due date and the funding instrument the payment will be taken from.

Yes, just log into your PayPal account, choose the PayPal Pay in 3 plan you want to pay off, and click Make a Payment. Then you can make an unscheduled payment of Next Payment Due or Full Balance.

Yes, just log into your PayPal account, choose the PayPal Pay in 3 plan you want to pay off, and click Make a Payment. Then, you can make an unscheduled payment of Next Payment Due or Full Balance.

We believe in responsible lending and will make efforts to support customers who are experiencing financial difficulty. If you know you will be unable to make a payment or are otherwise concerned about your finances, the best thing to do is to contact us to discuss this in advance. Don’t wait until your payment is overdue.

However, if you miss a repayment this may impact your ability to access other sources of credit or use Pay in 3 in the future.

If a payment does become overdue, our collections team will work with you to find the best solution.

You can find more information on short-term support that may be available under the Payment Deferral section below.

Independent support and advice can also be found in our FAQ “Where else can I go for financial help and support?” in the “Other FAQs” section on this page.

Just log into your PayPal account, go to PayPal Pay in 3, and click on the specific PayPal Pay in 3 plan. Here you can see the payments you have already made in your Plan Activity. You can also see the amount due in upcoming payments by clicking “See Upcoming Payments”.

Your Plan Activity should always be up to date or update within 24 hours. You can check your activity on the PayPal Pay in 3 section of your PayPal account, so any payments you make should appear there immediately.

There are a number of reasons we may not have been able to complete your scheduled payment. For example, if the debit card used to sign up to your Pay in 3 plan has expired or if there were insufficient funds available in your bank account balance.

If you need to change your debit card you can do so by logging into your PayPal account, going to PayPal Pay in 3, and selecting the PayPal Pay in 3 plan you want to change. There, you can click “Change” under “Payment Method”

If you need further assistance, contact us here.

Once you agree to the terms of your PayPal Pay in 3 plan and your payments begin, in most cases, you cannot pause, suspend, or skip your payments. The second and third payments will be taken automatically.

If you have any concerns around not being able to meet your payments, please contact us and we’ll do our best to help. You can also find more information on short-term support that may be available under the ‘Payment Deferral’ section.

Where you or the merchant tell us that your purchase is being refunded we may be able to pause your next payment. Please see our FAQ ‘Can I apply for a refund?’

Independent support and advice can also be found in our FAQ “Where else can I go for financial help and support?” in the “Other FAQs” section on this page.

Managing your PayPal Pay in 3 account:

If you want to make future payments with either a new debit card or bank account linked to your PayPal account, you can change your payment method by logging into your PayPal account, going to PayPal Pay in 3, and selecting the PayPal Pay in 3 plan you want to change. There, you can click “Change” under “Payment Method” to update your information or choose a new way to pay.

If your debit card will expire before your PayPal Pay in 3 plan ends, you can update your card information by following the same steps (above) or update your information in your PayPal wallet by logging into your PayPal account, clicking “Wallet”, choosing the card you want to update and clicking “Update Card”.

Log into your PayPal account and go to the Wallet page. Select the appropriate debit card to see the details. In the status line, you’ll see whether your debit card is confirmed or not.

f you withdraw from your Pay in 3 plan you will have to repay us any amounts outstanding under your plan.

You have fourteen (14) calendar days to withdraw, starting from the day after you make your purchase with PayPal Pay in 3. You must inform us of your decision to withdraw by contacting us online at www.paypal.com/uk by selecting ‘Help’ and then ‘Contact us’.

Payment Deferral:

If you’re in a short-term financial hardship, our payment holiday program will move your next repayment by a month, giving you a break from needing to make the next payment on your Pay in 3 loan. If you’re still unable to make a payment after the holiday ends, or you’re concerned about your finances, please contact us.

You’re eligible if you have no overdue or missed payments on any of your current Pay in 3 loans, and you’re not enrolled in another hardship program such as Breathing Space. We also may evaluate eligibility based on your broader circumstances and ability to make payments in the longer-term.

You’ll get an extra month to make your next Pay in 3 payment. For example, if your upcoming payment date is 19 July, a payment holiday will give you until 19 August.

There are no fees to enrol in a payment holiday.

No, it doesn’t. Keep in mind, however, that missing payments after the holiday ends could affect your score and make it more difficult or expensive to get credit in the future.

You should apply for a payment holiday only if you are currently experiencing a short-term financial hardship.

Please contact us if you’re experiencing longer term hardship or you need extra support.

Independent support and advice can also be found in our FAQ “Where else can I go for financial help and support?” in the “Other FAQs” section on this page.

To apply for a payment holiday, contact us.

You can have only one payment holiday per loan, so we’re unable to offer extensions. Please contact us should you need further support.

Enrolling in a payment holiday may affect your eligibility for a new Pay in 3 loan in the short term. But making payments on time and keeping your account up-to-date after the payment holiday will help support your eligibility for a new loans in the longer term.

Other FAQ's:

Our decision process is automated. We assess your financial position using a combination of the information you provided in your application and information about your usage and history with PayPal to decide if PayPal Pay in 3 is suitable for you now.

We may also run a “soft” credit check when you apply if we need more information to be able to make a decision. This search will only be visible to you and will not affect your credit score.

If you apply during check out and are declined for PayPal Pay in 3, you can still use PayPal to check out securely with your debit or credit card.

If you want to re-apply, you will be able to do so 35 days after your last application.

We may run a “soft” search credit check when you apply if we need more information to make a decision. This will leave a mark on your file that can only be viewed by you and not by others. It is important that you are able to keep up your repayments and that you are comfortable that they are affordable.

When applying for a PayPal Pay in 3, we may conduct a “soft” credit check if we need more information to make a decision. “Soft” credit checks are not visible to others, so have no impact on your credit file. However, we do share some data on your repayment history with Transunion. Although it does not impact your credit score, this data will be visible to other companies and may impact your ability to obtain credit from other lenders and the cost of accessing it. More information is available in our Pay in 3 Terms & Conditions.

You’ll see the link to the terms and conditions when you choose to apply for PayPal Pay in 3 at checkout, and you must read them before you submit your application. You will also have the option to download the terms and conditions.

Once your plan starts we will send you an email containing important information about your PayPal Pay in 3 plan, including how to locate your terms and conditions.

After you choose PayPal Pay in 3 and your application is approved, we send you an email providing you with the relevant information on your new PayPal Pay in 3 plan. This includes a link to the terms and conditions that you agreed to. Please also note that you can download your contract for your PayPal Pay in 3 plan directly from your PayPal account, if you go to ‘PayPal Pay in 3’ and click on the specific PayPal Pay in 3 plan.

Yes. As usual, Buyer Protection applies to your eligible purchases made with PayPal Pay in 3. Please see our Buyer Protection terms by clicking here.

Yes, you can. As long as you see the option for PayPal Pay in 3 at checkout, you can choose a new PayPal Pay in 3 plan. You’ll see all of your PayPal Pay in 3 plans in one place in your PayPal account under PayPal Pay in 3, including plans you completed in the past 12 months.

Read our Help Center article to find out what to do when you don’t receive your purchase.

Yes, you can still apply for a refund for your purchase when you use PayPal Pay in 3. If you return some or all of your items according to your legal statutory rights and/or the refund policy of the merchant, you’ll get a partial or full refund. Partial refunds will lower the amount that you owe in the payments you have left. Any refund issued will be paid to your PayPal Balance, once we have repaid any amounts owing under your Pay in 3 plan.

If you are concerned that your next repayment will be taken before we receive a refund, you can contact us online at www.paypal.com/uk by selecting ‘Help’ and then ‘Contact us’. This will allow us to either pause your next payment or stop your payments being taken automatically.

You can withdraw funds from your PayPal Balance to either your bank account or debit card. Instructions on how to do so, by clicking the links below:

Yes. You must continue making repayments.

The Money Helper Service provides free and unbiased information and advice about financial services. They can be contacted by phone on 0800 138 7777, or alternatively, via their website:www.moneyhelper.org.uk/en.

If you live in Scotland or Northern Ireland, please consider www.moneyadvicescotland.org.uk or www.adviceni.net/money-debt/debt respectively.

Additionally, the following organisations may be able to help:
AdviceUK: www.adviceuk.org.uk/
Citizens Advice Bureau: www.citizensadvice.org.uk/ (for England and Wales) www.adviceni.net (for Northern Ireland) and www.cas.org.uk (for Scotland)
National Debtline: www.nationaldebtline.org/
StepChange Debt Charity: www.stepchange.org/

Please check our contact us page for ways to reach us.

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