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 specific card. 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.

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 possible impact to your credit score.

If needed, PayPal will run a soft credit check with an external credit reference agency. This leaves no permanent mark on a customer’s credit record if they choose not to progress. However, if a customer decides to use Pay in 3, we will report their ongoing performance to credit reference agencies as we believe this promotes responsible lending. So, it’s important that you’re able to keep up your repayments and that you’re comfortable that they’re affordable.

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

When making a purchase with PayPal Pay in 3, we will place a pre-authorisation hold on your chosen card for an amount equal to the initial payment or 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Pay in 3 and the merchant ships your goods, the pending authorisation will be removed and the initial payment will be withdrawn from your card.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.

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” To avoid any late fees, please make your payment manually by logging into your account, or contact PayPal for further assistance.

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