How does a merchant refund work for my Pay in 4?

The merchant is responsible for any partial or full refund for your purchase. We’ll notify you via email when a refund has been processed and applied.

If the refunded amount satisfies the entire outstanding balance on your Pay in 4 Facility, you will not have any further payment obligations. Please check your Pay in 4 plan details in your PayPal wallet to ensure that the plan balance is marked as Completed.

If the refunded amount exceeds the outstanding balance on your Pay in 4 Facility, any excess money will be applied to your PayPal balance in the form of a credit balance refund automatically. This may take up to 7 days if any of the repayments are still in process.

If the refunded amount does not exceed the outstanding plan balance, you must continue to make your Pay in 4 Facility repayments until the plan is paid in full.

If the merchant issues a refund in the form of a store credit, gift card, or cash, your remaining plan balance will still be due. This is because PayPal paid the merchant on your behalf when you were approved for a Pay in 4 Facility at the time of your purchase. Since the merchant refunded you directly, you’ll still owe any remaining balance on your plan to PayPal.

Sometimes the merchant does not provide PayPal with enough information to identify a specific purchase made with your Pay in 4 Facility where the refund should be applied. If this happens, PayPal will refund the amount we receive from the merchant to your linked PayPal balance account. This means that your Pay in 4 Facility will not be credited with the refunded amount and will still be due. You are able to withdraw the funds to your bank account and then pay your outstanding Pay in 4 Facility either though the website, app, or by contacting us. Please note a repayment cannot be taken directly from your PayPal balance.