PayPal Credit is like a credit card, without the plastic. It’s a
credit limit that’s attached to your PayPal account which you can use
for your online purchases. If your application is successful, PayPal
Credit will be available as a funding source within your PayPal wallet
and can be used for purchases in most places where PayPal is accepted.
You can make purchases in the same way as you would with a normal
credit card, by choosing PayPal Credit as your funding source at
checkout. PayPal Credit will provide you with a monthly statement
showing your transactions and detailing the minimum repayment amount.
Repayments can be made by monthly direct debit, directly from your
PayPal account or by speaking to PayPal customer service agents.
For purchases less than £99, interest is charged at PayPal standard
rate of 21.9% p.a. (variable) if the full amount is not paid off by
the date shown on your statement. In addition, PayPal Credit lets you
access two types of promotional offers: 0% for 4 months on all
purchases of £99 and over; and instalment offers with selected
merchants. If you use any of these promotional offers, they will also
be detailed on your monthly statement, as well as in the PayPal Credit
section of your PayPal account.
Your monthly minimum repayment will be shown in each statement and in
the PayPal Credit section of your PayPal account. Any offers you have
are also detailed in these locations. Your minimum repayment amount is
calculated based on your purchases, and will include:
• Any instalment offer payments due for that month;
• The full balance if less than £5, or the higher of £5 or 2% of the
outstanding balance (which excludes any instalment offer balances, but
includes any 0% for 4-month offer balances); and
• Any interest, charges, and arrears.
0% interest for 4 months is available on single transactions of £99 or
more. This means when you spend more than £99 in one shopping basket,
you’ll benefit from the offer and won’t be charged any interest on
that transaction for 4 months after purchase. This applies
automatically to any purchase made using PayPal Credit in excess of
this value, except those to which another promotional offer (such as
an instalment offer) applies. You can use this offer as many times as
you like as long as you have an available credit limit.
While no interest is charged, any balance subject to a 0% for 4 months
offer will be included in the calculation of your minimum repayment
amount. Any remaining balance due after the 4-month promotional period
will be charged at 21.9% p.a. (variable). If you fail to make minimum
repayments on time or in certain other circumstances, PayPal may
remove your offer. Please see the Credit Agreement for more details.
With selected merchants, when you check out with PayPal Credit, you’ll
be shown a selection of instalment offers which enable you to spread
the cost of your purchase across a number of repayments. These
instalment offers vary by merchant and allow you to choose a set
monthly repayment over a period from 6 to 48 months to help spread the
cost of larger purchases in a more manageable way.
Instalment offers will always have an interest rate lower than the
standard variable rate, and many merchants offer 0% instalments with
PayPal Credit. If you already have PayPal Credit, you can take
advantage of these offers without having to reapply as long as you
have enough available credit limit.
It is important that you think about whether you can afford the
monthly repayment agreed for any instalment offer. This will be added
to your monthly minimum repayment amount and will need to be paid each
If you fail to make repayments or in certain other circumstances,
PayPal may remove your offer and any outstanding amount will be
charged at 21.9% p.a. (variable). Please see the Credit Agreement for
You can have multiple promotional offers on your account, up to your
agreed credit limit and without needing to reapply. This means you can
combine standard purchases with the two types of promotional offer
available to help spread the cost and manage your budget.
Assuming you’re up to date with your repayments from previous billing
periods, repayments on your account are allocated in the following
• First, the repayment will be applied against any monthly payment due
on an instalment offer.
• Second, any amount remaining will be applied towards purchases that
are subject to the standard variable rate of 21.9%.
• Third, any amounts remaining after this will be applied towards
purchases with an instalment offer or 0% for 4 months offer on your
Repayments are allocated in order, starting with the purchase subject
to the highest interest rate and ending with the purchase subject to
the lowest interest rate. This reduces the overall amount of interest
you would otherwise pay. In the event that two promotional offers have
the same interest rate (for example, two 0% for 4-month purchases)
these are repaid based on the expiry date, with the soonest to expire
being repaid first.
PayPal have set up repayments to act in your best interests. They are
designed to keep your instalment offers on track and to minimise the
amount of interest you’ll pay on the rest of your purchases.
If you’re experiencing any particular difficulties, please contact
PayPal for help
Applying for PayPal Credit is easy. Simply complete PayPal’s short
application form and if approved and once you accept the Credit
Agreement, you’ll have a credit limit linked to your PayPal account
almost straight away.
Before you apply, please make sure you:
• Are a UK resident aged 18 years or older
• Have a good credit history
• Have not recently been declared bankrupt
• Are employed and have an income greater than £7,500 per year
The first stage of the PayPal Credit application process will ask you
to sign into your PayPal account or offer you the opportunity to sign
up for one. Once you’ve signed up for a PayPal account, you can begin
the application for PayPal Credit.
Signing up for a PayPal account is free and easy; all you need to do
is provide your email address, create a password and accept our User
The application form takes minutes to complete. PayPal then run a
credit check and if approved, you’ll have a credit limit linked to
your PayPal account once you’ve accepted your credit agreement. This
approval process will only take a few seconds and then you’re ready to
go. There can be a time lag between approval and when you can view
your PayPal Credit account online but this should update within a few
You can contact PayPal Customer Services to change your business
account to a personal account to apply for PayPal Credit.
Alternatively, you can create a new personal account to apply.
To determine the size of your credit line PayPal use the information
you provide in the application form along with internal PayPal data
and an external credit check.
You can make a single payment from your bank account, debit card or
PayPal balance at any time, online by logging into your account and
clicking 'Make a Payment'. You can also make a payment by calling
PayPal Customer Service on 0800 368 7155. Through customer services,
they can accept payment via any debit card, even those not linked to
your PayPal account.
You can set up monthly direct debit payments, provided you have a bank
account linked to your PayPal account.
• Log into your PayPal account and select PayPal Credit
• Select “Set up a direct debit payment”
• Choose how much you want to pay each month and from which bank
Not added a new bank account to your PayPal account?
To add a new bank account to your PayPal account:
• Log in to your account
• Select “wallet”
• Choose “add a bank account”.
• Once a bank is added, you can make payments directly to your PayPal
Credit account or set up a direct debit.
There are 4 different options available when you choose to set up
Direct Debits. You can choose to pay:
• The minimum amount due
• The last statement balance
• Any "other amount" in between each month.
If I make changes to my direct debit how long will it take to
implement? If you make changes to your direct debit it can take up to
a month to implement which means you may need to add a manual payment
in month to ensure you are covered and the direct debit changes will
be implemented the following month.
If you choose to pay the minimum amount due or the last statement
balance, you will need to set up the Direct Debit at least 4 working
days before your due date for the Direct Debit to start on that due
date. If you set it up any later than this, the Direct Debit may not
start until the next month. PayPal will tell you when you’re setting
up the Direct Debit exactly when it will take effect from and if you
need to make an interim payment.
If you choose to pay any "other amount", it is important to note that
the Direct Debit will not start on your next due date. It is likely to
start the following month. Please be sure to make a single payment the
month you set it up to avoid missing any payment due. PayPal will tell
you when you’re setting up the Direct Debit exactly when it will take
PayPal will automatically send you monthly reminders to notify you of
when your payment is due. They’ll ask you to make your first payment
around 35 days from when your PayPal Credit account was opened.
PayPal will automatically send you monthly email reminders 5-15 days
in advance of your payment due date. In order to receive these
reminders, ensure the correct email address is linked to your PayPal
Payments will reflect on your PayPal Credit account the same day you
make them, however, will show as pending. It can take up to 5 working
days for the funds to leave your bank account and be applied to your
PayPal Credit account.
If you're finding it difficult to make a payment, Please call PayPal
Credit customer service team on 0800 368 7155 and they will do their
best to help you. The organisations below should also be able to
answer your questions and suggest suitable courses of action:
• England and Wales
• Northern Ireland (Advice NI)
• Scotland (Citizens Advice Scotland)
• Payplan: call 0800 917 7823 or visit
• StepChange Debt Charity: call 0800 138 1111 or visit
• National Debtline: call 0808 808 4000 or visit
You can find this out by logging into your PayPal account on a desktop
computer and by clicking on the summary page. You can also view when
to make a payment via the app. Click on PayPal Credit and the ‘Make a
You can keep track of your PayPal Credit activity and history by
logging in to your PayPal account and selecting PayPal Credit
• Login to your PayPal account on your desktop and select PayPal
• Select "See statements"
• You can view all statements online as well as download them as PDFs
PayPal will email you monthly to let you know when your latest
statement is ready to view
Before you close your account, you need to ensure that your balance
has been paid off in full. To close your account, you can call PayPal
Credit customer service team on 0800 368 7155.
PayPal Credit is available to use at thousands of stores online where
PayPal is accepted. Transactions can be made in all currencies that
PayPal supports, not just GBP.
• At checkout, choose to pay with PayPal
• Simply change the payment source to PayPal Credit
• Confirm and Pay
On those merchants where instalment offers are available, remember to
lookout for PayPal Credit at checkout to see the offers available to
If you have the PayPal App, they’ll notify you every time you use
PayPal to pay, including PayPal Credit transactions.
There are some business categories where PayPal Credit cannot be used
as a payment option, so it won’t be offered to you as a payment option
during checkout. Excluded categories include merchants selling adult
content, stored value cards, and gambling.
Currently, your PayPal Credit limit cannot be used to send money to
friends and family or to deposit funds into your bank account.
Currently, your PayPal Credit limit cannot be used for a cash advance.
Yes. You’re not liable for unauthorised purchases made from your
PayPal Credit account. PayPal Buyer Protection also applies to
purchases funded with PayPal Credit. If this happens, you should
immediately report it to PayPal so they can investigate and resolve it
for you. You can report an unauthorised transaction through the
Resolution Centre of your PayPal account. This is independent of any
other statutory rights you may have.
Here's how to report an unauthorised transaction:
• Log in to your PayPal account.
• Under 'More about your account', click Resolve a problem in our
• Click Dispute a transaction
• Select the item you wish to dispute
• Click "Continue" and follow the rest of the instructions provided to
submit your dispute.
Late Payments - If you’re late with a payment, PayPal may charge you a
late payment fee of £12.
Returned Payments - You may be charged a return payment fee of £12 if
you have insufficient funds to cover the payment.
Statements (Paper Copy) - PayPal also charge a fee of £5 if you
request that we send you a printed copy of a previous statement. All
statements are available to download or view online within the PayPal
Credit section of your PayPal account.
For more information on how these fees apply, please refer to the
Outline of Credit, the Standard European Consumer Credit Information
document or the Credit Agreement.
No. There is no annual fee for a PayPal Credit account
PayPal review your credit limit monthly and may invite you to increase
your limit once you’ve been a PayPal Credit customer for at least 3
months. You can always request a credit limit decrease or opt out of
receiving offers to increase your credit limit.
No. Unfortunately, you cannot request a credit limit increase. Credit
limit increases will be offered to you when you become eligible.
To be eligible for a credit limit increase you must:
• Have been a PayPal Credit customer for at least 6 months
• Have not been in arrears in the last 6 months
• Have transacted with PayPal Credit in the last 6 months.
You can change your limit back to its original limit at any time by
calling PayPal Credit Customer Service on 0800 368 7155.
No, your new preferences will apply to all future offers only
There are 3 options for credit limit increases:
• Automatically accept all credit limit increases. This means any
future credit limit increase that is offered will be applied
automatically to your account.
• Manually accept or decline each credit limit increase. This means
that when an offer becomes available to you, you will need to log in
to your account and accept or decline the offer yourself.
• Turn off credit limit increases. This means you will not be offered
a credit limit increase even when you become eligible.
No, once an offer has expired you’ll need to wait until your next
offer. PayPal review your credit limit monthly and will continue to
offer you a credit limit increase as long as you meet their
As responsible lenders, PayPal constantly monitor exposure and
utilisation of customers’ limits. If, following a reassessment of
customer credit limits, they have decided to reduce your limit to a
more appropriate level there is not an option to keep your existing
limit and PayPal has the right to reduce your limit at any stage as
referenced in section 1.6 of your PayPal Credit agreement.
No. As a responsible lender PayPal regularly get updates from credit
reference agencies on your account. These updates along with a change
in limit do not appear on your credit file.
PayPal will email you with more information about why your application
for PayPal Credit was unsuccessful. If you apply during check out and
get declined for PayPal Credit, 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 35 days after your last application.
A Representative APR (Annual Percentage Rate) is shown on products
where you borrow money so that an easier and fairer comparison can be
made. It’s the typical total cost of a credit product expressed as a
percentage, spread over 12 months.
The Representative Annual Percentage Rate for a PayPal Credit account
is 21.9% (variable) per annum. This is also the standard rate of
interest that will apply to your purchases.
Sometimes PayPal will run promotional offers with a lower rate of
interest (such as 0% interest per annum for 4 months). Your standard
rate of interest will not apply to transactions charged at a lower
interest rate during the promotional offer period. See your Credit
Agreement for more details.
PayPal may offer to increase your standard interest rate by giving you
at least 30 days’ notice. For more information on when they would do
this please see your Credit Agreement.
PayPal are required to carry out creditworthiness and affordability
checks to determine if PayPal Credit is right for you. As part of this
process, they review information held on you by credit reference
agencies and other relevant information prior to approving you for
You may withdraw from your PayPal Credit account by calling PayPal
within 14 days of entering into the Credit Agreement. You may close
your PayPal Credit account at any time, but must repay any outstanding
The first option is to contact the merchant and see if they can cancel
the order. If it’s too late for the merchant to do so, then you can
return the goods to receive the refund direct to your PayPal Credit
Yes. If an eligible item that you’ve bought online doesn’t arrive or
doesn’t match the seller’s description, PayPal Buyer Protection will
reimburse you. Buyer Protection covers all your PayPal purchases
including those paid with PayPal Credit
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 to avoid late fees and possible impact to your
PayPal are offering PayPal Pay in 3 to a growing number of UK
customers. PayPal Pay in 3 is not available for certain merchants and
goods. They 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 PayPal hold suggests you may not
be eligible. 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 will be
approved based on our internal checks.
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
To apply for PayPal Pay in 3, you’ll need to provide your:
Date of birth
Debit card information
PayPal decision making process is automated. They assess your
financial position using a combination of the information you provide
within your application, and information about your usage and history
with PayPal to decide whether PayPal Pay in 3 is suitable for you at
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, however if
you are late with a payment, you will be charged a late fee of £12.
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
£45 and £2,000. 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.
Purchases made using PayPal Pay in 3 will be visible in the PayPal Pay
in 3 section of your PayPal Wallet.
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”. PayPal will also send you a
reminder by email or SMS to let you know when your next payment is
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. PayPal will send you a reminder
by email or SMS to let you know when your next payment is coming up.
You can see your payment schedule or make unscheduled payments at any
time by logging into your PayPal account.
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.
Both we and PayPal 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 PayPal to discuss this in advance. Don’t wait until your
payment is overdue. If you are late with a payment, you will be
charged a late fee of £12. If a payment does become overdue, PayPals
collections team will work with a you to find the best solution.
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 is always up to date on the PayPal Pay in 3 section
of your PayPal account, so any payments you make should appear there
There are a number of reasons PayPal 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. To avoid
any late fees, please make your payment manually by logging into your
account, or contact PayPal for further assistance.
No. Once you agree to the terms of your PayPal Pay in 3 plan and your
payments begin, 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
PayPal and they will do their best to help.
If you want to make future payments with a new card, 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
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.
To withdraw from your PayPal Pay in 3 plan you’ll have to return the
items you purchased to the merchant in compliance with applicable law
or the merchant’s refund policy depending on the case. The merchant
will send us a notice of the return, and we’ll refund the payments
you’ve made up to that point. 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 PayPal of your decision to withdraw
by contacting them online at
and selecting ‘Help’ and then ‘Contact us’.
PayPal decisioning process is automated. They 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. They may also run a credit check when you apply if they need
more information to be able to make a decision. This search will only
be visible to you. 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.
PayPal may run a soft search credit check when you apply if they need
more information to be able to make a decision. This will leave a mark
on your file that can only be viewed by you and not by others. PayPal
will report how you manage your repayments for your PayPal Pay in 3
plan(s) to credit reference agencies, so it’s important that you’re
able to keep up your repayments and that you’re comfortable that
Yes. We believe that a person’s credit score should be a true
reflection of their situation. Lenders rely on this in order to extend
credit to people in a sustainable way. As a responsible lender, PayPal
report a customer’s performance to credit reference agencies. So, it’s
important that you’re able to keep up with your repayments and that
you’re comfortable that they’re affordable.
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 PayPal 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,
PayPal 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 PayPal Buyer Protection terms.
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.
Yes. You must continue making repayments as they fall due while PayPal
investigate your dispute to avoid a late fee being applied.