Questions about Pay Monthly Disputes, Merchant Refunds

I returned items bought using Pay Monthly to the merchant; now what?

Please continue to make payments to keep your loan in good standing until the merchant processes your return.

After the merchant processes your return, they’ll send a refund to PayPal for the amount equal to the returned items. At that point, PayPal will apply that amount to your Pay Monthly installment loan and send you a confirmation email.

If the amount returned exceeds the outstanding balance on the loan, the excess money will be applied to your PayPal Balance automatically in the form of a credit balance refund. This could take up to 7 days if any of the repayments are still in progress. An additional email confirmation will be sent once we process the overpayment refund. 

Sometimes, the merchant does not provide us with enough information so that we can identify a specific Pay Monthly Loan. If this happens, we will refund the amount we receive from the merchant to your PayPal Balance. This means your Pay Monthly loan will not be credited with the refunded amount or any interest that accrued on that amount. You will remain responsible for repaying your loan in accordance with its terms. You can find your payment schedule and a copy of your Loan Agreement by logging into your PayPal account, clicking the Pay Later Hub, and accessing the Pay Monthly loan. 

For more details about how full and partial refunds are allocated to your loan, please refer to your Pay Monthly Loan Agreement.