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

Since PayPal Pay in 4 paid the merchant for your purchase, the merchant would refund the PayPal Pay in 4 loan the refund amount due for your returned or canceled merchandise, in full or partial. The refund posts towards your total balance due and does not go back to your original payment method.

If the refund satisfies the entire outstanding balance on the Pay in 4 loan, you will not have any further payment obligations. Please check your PayPal 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 Wallet balance automatically.

If your refund is partial, it will go towards the final payment (4th payment) scheduled. If the refund amount exceeds the 4th payment due amount, your 3rd payment amount due will be further reduced, and so on. PayPal reduces the principle amount from the backend of the payment schedule to ensure we are reducing the term of the loan for your convenience.

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