PayPal Pay in 3 Terms and Conditions

Key information:
  • PayPal Pay in 3 is a loan that allows you to pay for your purchase in three interest-free instalments.
  • Your first instalment is due at the time you make your purchase. Your second and third instalments will be due in the following two months. The dates of these payments are detailed in Clause 1.3 below.
  • There is no interest, fees or charges for choosing to pay with PayPal Pay in 3.
  • Repayments are made automatically from your PayPal account using the funding source you select, either your chosen debit card or a bank account linked to your PayPal account. We do not permit customers to make repayments using a credit card.
  • You may repay the amount you owe in full at any time, without any fees or charges.
  • We may also run a 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.
  • To understand your rights and what happens to your Pay in 3 Plan if you cancel your order with a Merchant, please see Clause 4 below.
  • Before you proceed, please carefully consider these terms and conditions. It’s important that you’re able to keep up your repayments and that you’re comfortable that they’re affordable.
  • If you miss a repayment, it may make it more difficult or expensive to obtain further credit from PayPal and other lenders.
  • Please refer to our Privacy Statement at https://www.paypal.com/uk/webapps/mpp/ua/privacy-full for more information about how PayPal processes your personal data.
  • If you have any questions about PayPal Pay in 3, please visit our help pages.
Customer details

Customer name

Customer address

Customer email

PayPal account ID

Agreement date

Pay in 3 Plan reference
1.1. PayPal Pay in 3 is a fixed sum credit arrangement (“Pay in 3 Plan”), granted to you, the customer named above, (“you”) by PayPal UK Ltd (“PayPal”, “us” or “we”) pursuant to this Agreement.
1.2. PayPal Pay in 3 allows you to pay in instalments for eligible purchases that you make using your PayPal account. This Agreement will govern use of your Pay in 3 Plan, but the PayPal User Agreement will govern your wider use of your PayPal account in completing the transaction. The PayPal User Agreement is available on the PayPal website and can be seen here.
1.3. The Transaction Amount is the value of your purchase less any PayPal account balance or special funding arrangement applied. We will automatically apply any merchant or transaction specific balance linked to your PayPal account to fund an eligible purchase and this will reduce the amount which is available to be funded through a Pay in 3 Plan. Pay in 3 will not be available where the Transaction Amount is reduced below £20.00 and may not be available for purchases with certain merchants.
The details of this Pay in 3 Plan are as follows:
Loan Amount

Loan Amount

(The Transaction Amount plus any additional costs, fees and charges accepted in checkout.)

£ [LOAN AMOUNT]

Repayment Plan

Instalment 1:

£[INSTALMENT AMOUNT] due on [DATE]

Instalment 2:

£[INSTALMENT AMOUNT] due on [DATE]

Instalment 3:

£[INSTALMENT AMOUNT] due on [DATE]

Repayment Method

Payment by your chosen debit card or bank account linked to your PayPal account as a funding source.

Each of the terms in the left hand column of the table above is a defined term within this Agreement. Any defined terms used within this Agreement and not defined shall have the meaning given in your PayPal User Agreement.
1.4. You agree that the Loan Amount set out in Clause 1.3 above may vary from the amount set out above depending on:
    a. any changes to the applicable currency conversion rate that occurs between the time the transaction is authorised and the time your PayPal account is debited; and/or
    b. any additional amount you may accept to pay under the purchase contract for your order with the merchant (the “Order”) such as (but not limited to) shipping costs, insurance costs, etc.
1.5. You expressly agree that any Loan Amount varied in accordance with Clause 1.4 above is the amount you agree to borrow under your Pay in 3 Plan. Your varied Loan Amount and the updated Repayment Plan can be viewed by logging into your PayPal account.
1.6. You acknowledge and agree that the Pay in 3 Plan falls under the exemption set out in Article 60F of the Financial Services and Markets Act (Regulated Activities) Order 2001. This means you may not benefit from all the protections provided by the Consumer Credit Act 1974 and the UK’s consumer credit regulatory regime.
1.7. PayPal Pay in 3 is available to natural persons of at least 18 years old residing in the United Kingdom that hold a PayPal account with a valid debit card or bank account linked to it as a funding source for the duration of this Pay in 3 Plan.
1.8. Our decision to lend to you under this Agreement is based on, amongst other things, our assessment of your financial position, the information you provided us within your application and information about your usage and history with PayPal. You may wish to download or print a copy of this Agreement and retain it for your records.
2. Execution and entry into force of this Agreement
    2.1. By entering into this Agreement, you expressly accept that the performance of this Agreement starts immediately after your acceptance and not after the expiration of the fourteen (14) calendar day withdrawal period further detailed in Clause 3 below.
    2.2. PayPal reserves the right to grant or refuse the Pay in 3 Plan at its sole discretion and for any reason, including on the basis of our assessment of your financial position.
    2.3. If your first instalment at the time of application is rejected or fails, your application for PayPal Pay in 3 will be declined and you will be asked to choose a different method of payment for your purchase.
    2.4. The Loan Amount made available under this Agreement will be directly paid to the relevant merchant through your PayPal account. If the merchant does not accept your transaction or order, this Agreement will terminate with no costs or liabilities imposed on either you or PayPal.
3. Your right of withdrawal from this Agreement
    3.1. You may withdraw from this Agreement without giving a reason by contacting us using the details provided in Clause 8.3 below. You have fourteen (14) calendar days to do so, starting from the day after you enter into this Agreement.
    3.2. If you choose to withdraw from this Agreement, the Agreement will end and you will have to repay any Loan Amount outstanding.
4. Cancelling your Order with the merchant
    4.1. You usually have rights under consumer law to cancel your Order at any time before it is delivered and 14 days after. The 14 day period starts:
    1. on the day after all parts of your Order have been delivered (where you are buying goods); or
    2. on the day after your purchase (for digital purchases).
You may have a longer cancellation period either under a merchant’s policy or under consumer law in certain circumstances. You can usually view further details on the merchant’s website or within their communications about your Order.
Some Orders cannot usually be cancelled – for example, purchases of personalised items, perishable items and sealed audio, visual or software which you open.
    4.2. If you choose to cancel your Order, it will also mean that your agreement with us is automatically terminated (see Clause 10.5 below). Once a merchant has confirmed the cancellation of your Order and the amount of any refund due, we will update your payments and return any amounts due to you. PayPal will take these steps promptly, usually within 24 hours of receiving a refund from the merchant.
You may sometimes not be entitled to a full refund, for example if you chose a more expensive shipping option or if the goods are not returned in their original condition. Please see Clause 4.4 below for details of how we will treat a partial refund.
    4.3. Unless you:
    1. tell us that you have cancelled your Order with the merchant; or
    2. we are told by the merchant that you have cancelled the Order and a refund is in progress,
we’ll continue to process any payments in accordance with the dates set out in your repayment plan. If you are concerned that your next repayment will be taken before we receive confirmation from the merchant, you can contact us online at www.paypal.com/uk by selecting ‘Help’ and then ‘Contact us’ to let us know you’ve cancelled your Order so that we can either pause your next payment or stop repayments being taken automatically.
    4.4. If you choose to withdraw only from part of your Order or the merchant provides a partial refund, the Loan Amount will be reduced accordingly with the future instalments to be paid pursuant to the Repayment Plan being reduced equally and proportionally. You can view your revised Loan Amount and Repayment Plan by logging into your PayPal account.
    4.5. Where your Order was funded by PayPal account balance and /or a special funding arrangement in addition to your Pay in 3 Plan:
    a. If you cancel your Order, or withdraw from part of your Order or the merchant provides a partial refund, any refund will be applied in the following order:
  • firstly, to update your Pay in 3 Plan;
  • secondly credited to your PayPal account (only where the Order was partly funded by your PayPal balance); and
  • any remaining amount will be applied to re-instate or partially re-instate the special funding arrangement in your PayPal account (provided that it has not already expired) on the terms which applied to it at the time of the Order. More detail on special funding arrangements can be found in the PayPal User Agreement. Examples of special funding arrangements include merchant or transaction specific balance, gift vouchers or promotional funding arrangements.
    b. Where the refund amount is not enough to satisfy the Loan Amount in full, it will be reduced accordingly with the future instalments to be paid pursuant to the Repayment Plan being reduced equally and proportionally. In this situation, any special funding arrangement will not be re-instated to your PayPal account.
    4.6. If any activity detailed in this Clause 4 results in an overpayment to your Pay in 3 Plan, PayPal will reimburse the overpaid amount to your PayPal balance as quickly as possible.
    4.7. In the event you receive a refund from a merchant, it is your responsibility to return the item purchased to the merchant and, other than as set out in this Agreement and your statutory rights, we will not be held liable for a dispute between you and the merchant in relation to an item purchased.
5. Repayments
    5.1. You are required to repay the Loan Amount in accordance with the Repayment Plan as updated from time to time.
    5.2. Each repayment will be automatically debited from your chosen Repayment Method (as may be updated by you from time to time) on the dates set out in the Repayment Plan. You are able to manage the available Repayment Methods in your PayPal account or by contacting us using the details in Clause 8.3 below. You can also cancel any continuous payment authority or direct debit authorisation by contacting your bank, but you will still be responsible for meeting the repayments due under this Agreement.
    5.3. At any time you can also repay:
    1. the next instalment in your Repayment Plan, or
    2. the outstanding Loan Amount, or
    3. another amount which is less than your outstanding Loan Amount
You may do this by logging into your PayPal account and clicking on the “Make a Payment” button in the Pay in 3 section or by contacting our customer service team.
    5.4. If you choose to make an early repayment then we will treat this as follows:
    1. If you pay the next full instalment in your Repayment Plan, we will not debit your Repayment Method on the date specified for that instalment.
    2. If you pay an amount which is less than your next instalment amount, we will apply your payment to reduce the amount of your next instalment. We will still debit your Repayment Method on the date of your next instalment for any amount remaining on your next instalment.
    3. If you pay an amount which is more than your next instalment amount, we will not debit your Repayment Method on the date specified for your next instalment. We will apply any amount leftover to reduce the instalment that follows. We will still debit your Repayment Method on the date of that instalment for any amount remaining.
    5.5. There are no fees or charges associated with making a repayment in accordance with Clause 5.3 or 5.4 above.
    5.6. If PayPal tries to debit your Repayment Method for the repayment of an instalment and it fails, we may represent that amount to your Repayment Method for payment within 10 days or alternatively take the repayment from the balance of your PayPal account, if any.
    5.7. If you repay us more than you owe us, we will refund any excess amount to your PayPal account as quickly as possible.
    5.8. If we refund your PayPal account and it is later determined that no refund should have been paid, we will be entitled to recover it from your PayPal account where there is sufficient balance or from your Repayment Method.
    5.9. Repayments made by you under this Agreement will be applied:
    1. first, to past instalments which are due but unpaid (if any); then to
    2. the current instalment being due; and then to
    3. future instalments in the date order that they fall due.
    5.10. Missing a repayment could have severe consequences, including our taking legal action against you, and may make obtaining credit more difficult. If you miss a repayment:
    1. you may be affected in a way that makes it more difficult or expensive to obtain further credit; and
    2. you may face legal action to recover what you owe.
    5.11. If you are concerned about your ability to meet your repayments, we would encourage you to contact us as soon as possible so we can discuss options (see Clause 8.3 below). There are also other independent sources of support available who may be able to answer your questions or provide help, including:
    1. MoneyHelper: visit https://www.moneyhelper.org.uk or phone 0800 138 7777.
    2. PayPlan: visit https://www.payplan.com/ or phone 0800 280 2816.
    3. StepChange: visit https://www.stepchange.org/ or phone 0800 138 1111.
6. Your Pay in 3 purchases
    6.1. The Pay in 3 Plan is only available in pounds sterling (GBP). For transactions not in pounds sterling (GBP), PayPal will automatically convert the transaction amount to pounds sterling (GBP) at checkout before providing you with the Pay in 3 Plan. Any applicable currency conversion or other charges will be applied in accordance with your PayPal User Agreement.
    6.2. PayPal may enable the use of special funding arrangements for Pay in 3 purchases in its absolute discretion.
    6.3. For the avoidance of doubt, you must continue to make the repayments due under this Agreement on their due date whilst any claim and/or dispute you raise is being investigated.
7. Our liability
    7.1. We shall not be responsible if you are unable to use your Pay in 3 Plan or should we be unable to carry out any of our obligations under this Agreement due to:
  1. our compliance with applicable laws or regulation; or
  2. abnormal and unforeseeable circumstances beyond our reasonable control, the effects of which would have been unavoidable despite our efforts to the contrary.
    7.2. You cannot use a claim against a merchant as a reason for not making repayments to us unless you have a legal right to do so.
8. Communication
    8.1. By derogation from your PayPal User Agreement, any notice to be provided to you by us under this Agreement will be exclusively sent by posting it on the PayPal website(s) (including the posting of information which is only accessed by logging into your Account), emailing it to the email address listed in your Account, calling you by phone, or sending you a “text” / SMS message.
    8.2. If we have reasonable grounds for believing that you have changed your email and postal addresses, for example because our correspondence is returned to us, we may instruct agents to trace you.
    8.3. You can find how to contact us online at www.paypal.com/uk by selecting ‘Help’ and then ‘Contact’.
9. Changing this Agreement
    9.1. We may change any term of this Agreement where the change is necessary to make the Agreement fairer to you or easier to understand or reflects a change in relevant laws or regulation. Unless prohibited from doing so by law or regulation, we may make the change immediately and tell you about it within twenty-one (21) calendar days.
    9.2. If you apply for and are offered further Pay in 3 Plans, those Plans will be subject to the terms that apply as at the date of the relevant Pay in 3 Plan, which may differ from the terms of this Agreement. You are responsible for ensuring that you are familiar with the terms of each Pay in 3 Plan you enter into.
10. Termination
    10.1. This Agreement shall automatically terminate once the Loan Amount is repaid in full.
    10.2. We may terminate this Agreement and the related Pay in 3 Plan and demand immediate repayment of the full amount you owe us if:
    • we find out that our decision to lend to you was based on inaccurate, misleading or incomplete information;
    • you breach this Agreement regularly or seriously;
    • you break the law or you appear on any sanctions list that we monitor;
    • we have a reasonable belief that you no longer have the ability to control your account, including if you are deceased or of unsound mind;
    • you have broken the terms of another agreement with us (including other Pay in 3 Plans or a PayPal Credit agreement);
    • we reasonably believe you no longer reside in the United Kingdom; or
    • if you close or attempt to close your PayPal account.
    10.3. To the extent permitted by the applicable law, we may also ask you to pay any reasonable losses and costs that we incur as a result of you breaching this Agreement.
    10.4. You may terminate this Agreement at any time by repaying the outstanding Loan Amount due at this date within the conditions set out in Clause 5.3 above.
    10.5. This agreement will also terminate automatically:
    • if the circumstances set out in Clause 2.4 above arise; or
    • where you exercise your right to cancel the Order. See Clause 4 above for more detail.
11. General
    11.1. The laws of England and Wales apply to this Agreement. Any dispute shall be subject to the jurisdiction of the courts of England and Wales, unless you reside in Scotland (where it will be subject to the courts of Scotland) or Northern Ireland (where it will be dealt with by the courts of Northern Ireland).
    11.2. Further to Clause 1.6 above, most elements of PayPal Pay in 3 are not currently regulated by the UK’s financial services regulator, the Financial Conduct Authority. PayPal UK Ltd is authorised and regulated by the Financial Conduct Authority (FCA) as an electronic money institution under the Electronic Money Regulations 2011 for the issuance of electronic money (firm reference number 994790), in relation to its regulated consumer credit activities under the Financial Services and Markets Act 2000 (firm reference number 996405) and for the provision of Cryptocurrency services under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (firm reference number 1000741).
    11.3. This Agreement contains the whole agreement between us and you regarding your Pay in 3 Plan and supersedes and replaces any prior written or oral agreements, representations or understandings between us and you in relation to this Agreement. Each party confirms that it has not entered into this Agreement on the basis of any representation that is not expressly incorporated in this Agreement. In the event of a conflict between this Agreement and any provision of the PayPal User Agreement, the terms of this Agreement shall prevail.
12. Complaints
    12.1. If you have a complaint against us, our goal is to learn about and address your concerns. Complaints may be reported by contacting us. The details of how to do this can be found online at www.paypal.com/uk by selecting ‘Help’ and then ‘Contact’.
    12.2. Unregulated lending products like Pay in 3 are not currently subject to the Financial Ombudsman Service’s (FOS) jurisdiction, but the payment functionality and some other services provided through your PayPal account are. Clause 1.2 above gives more detail. Because of this and depending on the nature of your complaint, if we do not resolve your complaint internally to your satisfaction, you may be able to refer it to the FOS. The FOS is a free, independent service which might be able to settle your complaint. The FOS’s contact details are:
    Post: Financial Ombudsman Service, Exchange Tower, Harbour Exchange, London, E14 9SR Telephone: 0800 023 4567
13. Data Protection
Please refer to our Privacy Statement at https://www.paypal.com/uk/webapps/mpp/ua/privacy-full for more information about how PayPal processes your personal data.
If you want to exercise your data protection rights or have any questions about our Privacy Statement, PayPal's data protection practices, or your PayPal Pay in 3 application, you can contact us online at www.paypal.com/uk by selecting ‘Help’ and then ‘Contact us’, or by writing to us at the following email address DPO@paypal.com or at PayPal UK Ltd at 5 Fleet Place, London, United Kingdom, EC4M 7RD.
The details you provide in your application form help us make responsible lending decisions. We ensure the security of your personal data.
For credit decisions and the prevention of fraud and money laundering, we may use credit reference and fraud prevention agencies (“FPAs”) to help us make decisions.
When you apply to us to open a Pay in 3 Plan, we will check the following records about you:
  • Any PayPal data that we currently hold in relation to you.
  • Potentially, those at credit reference agencies (“CRAs”). The identities of the CRAs, and the ways in which they use and share personal information, are explained in more detail at:
www.transunion.co.uk/crain
www.equifax.co.uk/crain
www.experian.co.uk/crain
Information on applications may be sent to CRAs and may be recorded by them. Where you borrow from us, we may give details of your Pay in 3 Plans and how you manage them to CRAs. If you do not repay in full and on time, CRAs may record the outstanding debt. This information may be supplied to other organisations by CRAs and FPAs to perform similar checks and to trace your whereabouts and recover debts that you owe. Records remain on file for 6 years after they are closed, whether settled by you or defaulted.
If you provide false or inaccurate information and we suspect or identify fraud, we will record this and will pass this information to FPAs and other organisations involved in fraud and money laundering prevention.

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