1. What is PayPal Pay in 3?

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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.

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2. Will I be able to use PayPal Pay in 3?

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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.

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3. How long will my PayPal Pay in 3 plan last?

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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.

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4. What information do I need to apply for PayPal Pay in 3?

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

• Title

• Phone number

• Address

• Date of birth

• Payment details

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5. How is my application for PayPal Pay in 3 assessed?

 

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.

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6. Are there any fees associated with PayPal Pay in 3?

 

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

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7. Can I opt out from seeing PayPal Pay in 3 at checkout?

 

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?

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8. Can I apply for a refund?

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.

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9. How will my PayPal Pay in 3 transaction appear in my PayPal activity?

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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.

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10. Why is there a pending authorisation shown in my PayPal activity for my PayPal Pay in 3 transaction?

 

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.

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11. My PayPal Pay in 3 purchase was denied or did not go through, why do I still have a pending authorisation showing in my PayPal activity?

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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.

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12. Why didn't my payment go through?

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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.

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13. Can I pay off the entire PayPal Pay in 3 plan at once?

 

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.

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14. What happens if I can’t make my payments?

 

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.

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15. Can I pause or suspend my PayPal Pay in 3 payments?

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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.

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Find PayPal's FAQs here