Buy Now Pay Later Terms Scanner

Analyze BNPL terms for hidden risks around credit reporting, late fees, merchant disputes, and payment obligations that catch users off guard.

Built by Sergei Tokmakov, California-licensed attorney.

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BNPL-Specific Provisions I Check First

Buy Now Pay Later services have unique gotchas around credit reporting and payment obligations that differ from traditional credit. These terms deserve careful scrutiny.

Late Payment Reporting to Credit Bureaus

High Risk

Many BNPL providers now report to credit bureaus. A single missed payment can damage your credit score, even for small purchases. Some report "on-time" payments too, affecting credit mix.

Look for: "We may report your payment history to one or more credit bureaus. Late or missed payments may negatively impact your credit score."

Merchant Dispute Liability Gap

High Risk

If you have a dispute with the merchant (defective product, never received item), BNPL providers often require you to continue payments while the dispute is resolved—or face penalties.

Look for: "You must continue making scheduled payments during any merchant dispute. Disputes do not suspend your payment obligations."

Stacked Payment Obligations

High Risk

Using BNPL at multiple merchants creates overlapping payment schedules. Providers typically don't assess your ability to handle combined obligations, leading to payment shock.

Look for: "Each purchase creates a separate payment plan. You are responsible for managing multiple concurrent payment schedules."

Promotional Period Gotchas

Medium Risk

"Pay in 4" or "0% APR" promotions often have traps: missing one payment can trigger deferred interest on the entire purchase amount retroactively.

Look for: "If promotional balance is not paid in full by the end of the promotional period, interest will be charged from the original purchase date."

Returned Item Payment Continuation

High Risk

When you return an item, refunds may take weeks to process. You're often required to keep making payments during this time, with refunds applied later—if at all.

Look for: "Continue making scheduled payments until your refund is processed. Refund timing depends on the merchant's processing time."

Cross-Default Acceleration

High Risk

Defaulting on one BNPL purchase can trigger default on ALL your purchases with that provider, making entire balances due immediately and potentially blocking future use.

Look for: "Default on any payment plan may accelerate all outstanding balances and result in immediate termination of your account."

Standard Legal Provisions

Common terms found in most BNPL agreements that affect your rights and payment obligations.

⚖️

Arbitration Clauses

Disputes resolved through private arbitration, not courts.

👥

Class Action Waivers

Cannot join group lawsuits over fee practices.

💰

Late Fee Structures

Fees per missed payment, often capped by state law.

📊

Credit Check Practices

Soft vs. hard pulls at signup and for each purchase.

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Auto-Payment Terms

Automatic debits from linked accounts or cards.

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Debt Collection Rights

Third-party collection and legal action provisions.

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Communication Consent

Authorization for calls, texts, and emails about payments.

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State Law Variations

Different rules apply based on your state of residence.

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