Shoppers who have used “buy now, pay later” to fund their gifts this holiday season may soon find themselves in for an unwelcome surprise. Returns can be more difficult than buying in-store with cash or credit card.
Returns and disputes are a common concern among Buy Now, Pay Later users, according to the Consumer Financial Protection Bureau’s September 2022 report, and dispute resolution can be found in the CFPB’s Consumer Complaint Database. , are the top complaints related to buy now, pay later.
But if you know the process ahead of time, it’s not impossible to make a seamless return—buy now, pay later. You should consult with and follow up with a provider to buy now and pay later if necessary.
What you need to know Buy now, pay later About returns
When using a Buy Now Pay Later provider such as Afterpay, Affirm or Klarna, you may choose to make your total purchase into smaller, often interest-free installments while the provider pays the full amount for you. increase.
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This means that when you return an item, the refund will be sent to the Buy Now Pay Later provider.
A buy-now-pay-later loan pays off quickly (a standard four-payment loan pays out every two weeks), so you might fall behind on your returned gifts.
This industry also remains largely unregulated. If the package is lost or damaged, consumers have less protection compared to other financial products.
“Some lenders have specific dispute provisions that apply to credit cards that may not exist in the BNPL space, so returns can be a challenge if you buy now and pay later,” he said. Installment loans in micro, market and CFPB.
Udis points out that some providers offer protection voluntarily. For example, PayPal and Klarna have formal protection policies that may increase your chances of getting a refund.
According to Klarna, a buyer protection policy has been implemented to ensure that shoppers can shop safely on the app.
“If an item is not delivered or if there is a problem with the item, we have a clear process for shoppers to resolve the issue and ensure that the customer is not held liable to pay unfairly for their purchase,” Klarna said. Kristina Elkhazin, Head of North America, said. said in an email.
However, returns are ultimately subject to the store’s policies, so shoppers should make it a priority to obtain return authorization at the store before contacting the Buy Now, Pay Later provider.
FILE – A shopper carries a bag on Fifth Avenue in New York, Friday, November 25, 2022. If you purchased a gift that failed with the Buy Now Pay Later plan this holiday season, you or your recipient may be wondering how to return it. Buy Now Pay Later returns are tricky because you’re dealing with multiple parties, including the store from which the gift was given and the provider who funded the purchase, Buy Now Pay Later may be (AP Photo/Julia Nikinson, File)
Julia Nikinson
Buy Now, Pay Later Return Instructions
If you need to return a holiday gift purchased with Buy Now, Pay Later, please follow these steps:
— Check the return process for the ‘buy now, pay later’ provider. Most providers maintain web pages that describe the process, but this may vary from provider to provider. Learn what to expect with refunds and timelines.
— Return a gift to the store: The provider will direct you to the retailer first, so check the store’s return policy. If possible, please return your online order directly to avoid risking the item being lost in the mail. Please bring relevant documents such as receipts and confirmation emails. If you don’t have a receipt, you may be eligible for a replacement or store credit, depending on store policies.
— Leave a record: Keep a copy of all transactions, including returns, exchanges, or store credits issued. If you mailed your return, please obtain a tracking number. Keep a log of your communication with the store.
— Follow-up for “buy now, pay later” providers: Some providers may ask you to report returns on their website or app, while others do not require any action on your part.
— Continue payment: After returning the gift, continue to pay off the loan. Refunds may take time and failure to pay may result in late fees and other penalties. Some providers, such as Afterpay, may allow payment to be deferred after the return.
— Potentially Conflict: If your purchase is not refunded in a timely manner (which may take days or weeks depending on your buy now pay later provider), please contact your provider’s customer service department for more information. If the store doesn’t accept returns, consider filing a dispute with the provider. This may mean logging into your account and completing an online form.
Used the wrong credit card 8 times
Which card is correct?
There is no such thing as a universal best credit card. The card that’s right for you depends on your lifestyle, goals, and credit history. For example, if you’re looking for travel rewards but your friend is building credit, the best card for each will vary greatly.
According to a 2021 Experian study, the average American has about 3 cards, but they often have the wrong card in certain situations.
Here are 8 ways you might be using the wrong credit card and what you can do instead.
AP Photo/Keith Srakocic, File
1. Still using the starter credit card
You may have started by building your credit with secure cards, student cards, or alternative cards, but once your credit is in better shape, it may be time to upgrade.
By keeping your usage low and paying your balance in full every month, you’re more likely to qualify for a better card if you’ve used your starter card responsibly. Different cards can offer higher credit limits, better reward income, and perks like cell phone protection and travel rewards. Sometimes it upgrades automatically, sometimes it doesn’t. Please contact the issuer to check your options.
AP Photo/Mark Lennihan, File
2. Not using enough cards to get the signup bonus
New cardholders often get a nice welcome bonus, but there are usually caveats. To earn it, you have to spend a minimum amount within a certain period of time. Be aware of the card’s sign-up bonus usage requirements and use your new credit card well before the deadline. If he continues to pay with the card, he risks missing out on the bonus if he doesn’t spend enough on the new card.
A little planning helps. Think about the big purchases you need to make in the future, such as car repairs or a new laptop. One of them alone may be enough to meet the bonus spending requirements.
AP Photo/Jenny Kane, File
3. Those who use store-only cards
It is true that a store credit card can save you money, especially if you frequently make large purchases at that store. However, rewards earned on store credit cards are often only redeemable at that store, limiting their usefulness.
Most shoppers are better off using generic rewards credit cards to get more flexible rewards. Some cards offer better rates on online shopping purchases, while others give you as much as 5% back at popular merchants like Target, Walmart and Amazon.
AP Photo/Paul Sakuma
4. I didn’t know that the 5% card was an extra hassle
Several cards boast top 5% cashback rates in popular spending categories such as grocery, restaurants and gas. The problem, though, is that you have to do some work to earn that rate. Most of the time you need to track categories. Eligible 5% purchases may need to rotate quarterly or select your own category. If you’re spending outside of these categories with this card, chances are you’re getting just 1% instead of the juicy 5% you think you’re getting.
In most cases, even if you’re spending in the right category, you’ll need to activate the bonus category before the issuer’s deadline to get the 5%. Additionally, you may face spending caps in these 5% bonus categories. Once these caps are reached, the reward rate drops to 1%. For those who find the 5% card expensive to maintain, choose a card that allows you to earn a flat rate of her 2% cashback on each purchase instead.
AP Photo/Elise Amendola, File
5. Wrong card name
According to a 2020 NerdWallet survey, 14% of Americans view credit cards as “complicated,” and it’s not hard to see why. Some issuers offer a series of cards from the same family, with nearly identical names. Even the logos of some issuers are strikingly similar. Run a quick audit of your credit card to make sure it’s the one you intended to get. Cards that look and sound nearly identical may be worlds apart when it comes to fee and reward structures.
AP Photo/Jenny Kane, File
6. Regularly make purchases using a balance transfer card
A balance transfer card is a great tool for paying off debt. Consolidate several debts in one place to make it easier to manage and pay interest for months. However, if you use the balance transfer card for everyday expenses, it will be difficult to reduce the balance to 0 yen. Additionally, many balance transfer cards do not come with perks. Leave your balance transfer card at home, but carry your cashback card with you. Make regular payments for both.
AP Photo/David Goldman, File
7. You are not using the correct card for the purchase
It is useful to know the reward rates of all credit cards. Suppose you have two credit cards. One earns 4% on gas bills, the other only 1%. Every time he fills up with gas, he uses a 4% card, which gives him an extra $30 in profit if he pays $1,000 for gas a year. That $30 may not seem like much, but it’s a small amount, especially if you have multiple rewards credit cards. Label your cards with sticky notes or keep a small reference guide in your wallet to keep track of different reward rates.
In many cases, you should also have a spending limit in mind. Issuers usually cap their earnings with the highest reward rate once they reach a certain amount of spending in a particular category. Track your progress towards that cap, and when you reach it, switch to another card with a higher rate until the cap is reset.
AP Photo/Richard Drew, File
8. Never use credit cards
Although they may look and feel almost the same, debit cards are very different from credit cards. Credit cards offer protections and benefits that debit cards (and cash) do not. Earn cash back and other rewards with your credit card that you can’t get with your debit card. A lost credit card is often easier to recover than a wallet full of cash. More importantly, using your credit card responsibly can help you save money by boosting your credit score, favorable loan terms and insurance rates, and more.
AP Photo/Matt Rourke
PennyWise Podcast: 5 Tips to Avoid Credit Card Debt
This article was provided to The Associated Press by personal finance website NerdWallet. Jackie Veling is a writer for his NerdWallet. Email: jveling@nerdwallet.com.
