Skip to main content

Do I have to pay off a Buy Now, Pay Later (BNPL) loan if I want to return my purchase?

Whether or not you have to pay back your BNPL loan after returning a purchase depends on the retailer’s return policy and the terms of your BNPL loan.

Be sure to read both the retailer’s policies and the BNPL loan terms before making a purchase using a BNPL loan. Your loan repayment agreement is with the BNPL lender rather than the retailer. While you may be able to return the merchandise, and you may eventually receive a credit, your loan repayment agreement may require you to continue to make payments while you are returning or disputing a purchase until your return or dispute is resolved.

This is different from your rights to dispute items or services purchased with a credit card. BNPL lenders are not subject to some of the consumer protections applicable to credit card companies. The Federal Trade Commission has more information on your return rights and consumer protections .