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

Since PayPal paid the merchant for your Pay in 4 purchase, we would apply the full or partial refund from the merchant to the corresponding Pay in 4 loan.

If the refund satisfies the entire outstanding balance on the Pay in 4 loan, you will not have any further repayment obligations. Please check your Pay in 4 loan details in the wallet to ensure that the loan balance is marked as Completed. If the refund results in a credit balance refund (an overpayment of the Pay in 4 loan), your credit balance will be moved to your PayPal balance automatically. This can take up to 7 days if any of the repayments are still in process.

If your refund is partial, it will still be applied to your Pay in 4 loan. A partial refund may reduce the number of remaining payments or the amount of your final payment.

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

Sometimes the merchant does not provide PayPal with enough information to identify a specific Pay in 4 plan 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 or PayPal account. This means that your Pay in 4 plan will not be credited with the refunded amount and will still be due. You are able to use the refunded funds from your PayPal balance account to pay your Pay in 4 plan directly through the app or website, or you can withdraw the funds to your bank account and then pay your outstanding Pay in 4 amount either though the website, app, or by Contacting Us. Please note a representative will not be able to take a payment from your PayPal balance.