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 initial total purchase amount and is not reflective of the PayPal Pay in 3 installment plan or any payments already made using your eligible repayment method. By using PayPal Pay in 3, PayPal pays the merchant upfront and divides the original purchase amount into 3 interest-free payments. The down payment is processed on the date of purchase and the next three payments are automatically taken bi-weekly. The down payment and subsequent three payments will also each be reflected as separate payment transactions in your PayPal activity and represent the actual repayments made towards your total purchase amount.

PayPal Pay in 4 is an interest-free loan that lets you split your total purchase of €30-€1500 into 3 payments, with the first payment due at time of purchase and subsequent payments due monthly thereafter. It’s a great way to spread the cost of items over time, and can help you 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.

As part of their Pay in 3 application, some customers may require a soft credit check; however, there will be no impact to their credit score.

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

When making a purchase with PayPal Pay in 3, we will place a pre-authorization hold on your eligible repayment method for an amount equal to the initial down payment or one fourth of your total purchase amount. This will show as a pending authorization in your PayPal account activity and also in the financial institution associated with your repayment method. Once you complete your purchase with PayPal Pay in 3 and the merchant ships your goods, the pending authorization will be removed and the initial down payment will be withdrawn from your repayment method. If you do not complete your PayPal Pay in 3 transaction, the pending authorization will be automatically voided by PayPal within 72 hours of the pre-authorization hold.

There are several reasons PayPal may not have been able to complete your scheduled payment, including if there were insufficient funds on your debit card, credit card or bank account, or if your card hasn't been confirmed. If you need to change or update your repayment method, you can do so by logging into your account with PayPal, going to PayPal Pay in 3, and selecting the PayPal Pay in 4 plan you want to change. There, you can click “Change” under “Payment Method” to update your information or choose a new way to pay.