We highly recommend to watch your credit card balance and not overspend. But if you have to pay interest on your credit card balance, this option may be good to reduce the outstanding balance and reduce the total interest cost. Still you should fund your card regularly and make sure it's paid off in a timely manner.
With the launch of Pay in 4, US PayPal users can now select an installment option when placing their MyCommerce order. This “buy now, pay later” option increases payment flexibility and empowers shoppers to make larger purchases over time without adding credit liability or nonpayment risk for the vendor.
In which cases will Pay in 4 be available?
Shoppers can choose the installment payment option if the following conditions are fulfilled:
How does Pay in 4 work?
- The shopper using PayPal is located in the USA
- The order amount is between 30 and 600 USD
- The product is set up with a one-off payment (no subscription product with recurring rebilling)
- A credit card account is added to the PayPal account before or during the payment process (Pay in 4 is not available for bank accounts only)
If the above conditions apply, Pay in 4 will be made available automatically when a US customer selects PayPal as payment option and is referred to their PayPal account. There will be no need from your side to activate the option or adapt your shopping cart, and you will incur no additional costs nor need to sign any additional contracts.
For successfully authorized Pay in 4 payments, PayPal will report the full order amount as completed to MyCommerce, and the customer delivery will be triggered directly after order submission. From a customer perspective, PayPal will split their total order amount into 4 interest-free payments every two weeks, over six weeks, with the first payment due with the order submission. As the payment option is offered by PayPal, customers should contact PayPal directly for any questions about their Pay in 4 payment installments.