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How do the promotional offers work?

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Kuraiya
New Community Member
Posted on

Okay, so recently I made a few purchases using Bill Me Later which has now become PayPal Credit.

 

One order was for $238.99 and was purchased using a 6 months no interest and no payments promotion.  Prior to this purchase I made another purchase of $1,400 with a 18 months no interest + no payments promotion.  Which leaves me with a new balance of $1,638.99.  I've since paid off the second purchase of $238.99. 

 

My question is, "Since I've paid off one purchase in full, will I still be affected by the interest rate that purchase was accruing?  Also, does that mean that I have six months to pay my balance in full even though I bought another product with an 18 months no interest + no payments promotion?"

 

I find it ridiculous that purchases and their promotions aren't separated on the balance.  It would make more sense to be able to pay off separate portions of your balance to satisfy that purchase's promotional offer of however many months was stated when the purchase was made.  Whether the terms was to pay it in full with either no interest and/or no payments.

 

Example:

 

Office Depot Purchase: $238.99 (six months no interest + no payments)

Payments made toward this purchase: $138.99  

Remaining Balance on this purchase: $100.00

 

Logitech Purchase: $1,200 (18 months no interest + no payments)  

Payment made to this purchase: $200.00  

Remaining Balance on this purchase: $1,000.00

 

That would be a more logical way of honoring these "promotions."

15 REPLIES 15

How do the promotional offers work?

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PayPal_Nicole
Moderator

Hi Kuraiya,

 

Thank you for posting on the PayPal Community Help Forum.

 

Each Promotion is separate within PayPal Credit. Once you pay off one Promotion or Standard Balance the interest will no longer accrue for that purchase.

 

 For “No Payments + No Interest if Paid in Full by" Promotions- If you don't pay your balance in full by the promotion expiration date, the accumulated (or "deferred") interest will be added to your account balance. Minimum purchase may apply.

For “No Interest if Paid in Full by:” Promotions-  If you pay your balance in full by the promotion expiration date, you won't be charged interest. If you don't pay your balance in full by the promotion expiration date, the accumulated (or "deferred") interest will be added to your account balance. Minimum purchase may apply.

 

Each promotional purchase is listed in the PayPal Credit Section of PayPal.  You can see the balance on these promotions, expiration dates and any interest that may be building.

 

 

 

 

Thank you,
Nicole
PayPal Credit

How do the promotional offers work?

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lowejules
Contributor

I am in the same situation as Kuralya, and I am not so sure we have our answer here. The question is:

 

CAN WE DIRECT FUNDS TO REDUCE AN IMPENDING DEFFERED BALANCE IF WE ALREADY HAVE A LARGER BALANCE ON THE ACCOUNT ACCRUING INTEREST?

 

Thank you for your attention to this matter, which is very important to many of us, I am quite certain.

 

Julie Lowe

How do the promotional offers work?

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Teesa9654
New Community Member

I would like to know that if you  make a payment on your account, does it go towards any promotional offers that you have pending first?  For instance, if you have a balance of $100 and you make a payment of $40 and you have a pending promotional offer about to expire for $25, will that payment of $40 pay off the promotional offer first and then apply the other $15 to the next promotional offer?

If not, is there a way to directly pay on a promotional offer?  Thanks!

How do the promotional offers work?

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lowejules
Contributor

Teesa that is a great question that I myself and I'm sure many others would love to know the answer to! It would appear that this thread is being ignored, my post was nearly a month ago and I've heard nothing as of yet.

How do the promotional offers work?

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PayPal_Nicole
Moderator

Hi Everyone and thank you for taking the time to post.

 

We do appoligize for the delay in reply.

 

 

Your minimum monthly payments are automatically applied in the order below, depending on the financing options you selected for your online purchases.

 

1. Easy payments.

 

2. Promotional balances where the promotional period will end in the next two billing cycles. Promotional balances include balances for purchases made using our "No Payments + No Interest if Paid in Full By" or "No Interest if Paid in Full By" options. If you have multiple promotions expiring in the same billing cycle we'll apply your payment to the oldest promotion first, based on the purchase date.

 

3. Existing revolving balances, including interest and fees (if any), in order from lowest to highest Annual Percentage Rate (APR).

 

4. The revolving balance on your account during the billing cycle. This includes the portion of your balance that is either not covered by promotional financing or the promotional period has already expired and you are still making payments.

 

***If you pay more than your minimum monthly payment, the excess amount will be applied as follows:

 

1. Promotional balances where the promotional period will end in the next two billing cycles.

 

2. Existing revolving balances, including interest and fees (if any), in order from highest to lowest Annual Percentage Rate (APR).

 

3. Promotional balances expiring more than two billing cycles from the date we receive your payment, in order of their expiration date.

 

4. Activity that has occurred on your account since your last statement date.

 

To avoid paying interest on promotional purchases, be sure to pay your promotional balances in full before the expiration date. You can find this information by reviewing the "Active Promotions" portion of your online Statement Snapshot on our "Statements" page, or by checking the "Deferred Interest Calculation" section of your paper statement.

 

The order in which we apply your payments was determined according to the Credit Card Accountability, Responsibility, and Disclosure (Credit CARD) Act of 2009 and the Terms and Conditions of your account.

 

PayPal Credit Customer Support can assist in allocating your payments. To allocate how your excess payment (after your minimum payment is met) is applied, please contact customer support at 866-528-3733. 

 

Please note that we're only able to make adjustments to the application of amounts paid in excess of your minimum payment due. Any payment must first satisfy your minimum payment due in order to keep your account up to date and avoid late fees

 

 

Thank you,
Nicole
PayPal Credit

How do the promotional offers work?

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j_a_c
Contributor

Once the deferred interest promotional period expires, where does the unpaid balance of the deferred interest purchase fall in the order of how the payment is applied if more than the minimum due is paid. The methodology seems to differ between how the minimum payment is applied and how the excess amount over the minimum payment is applied in your response above (specifically items 4 in your lists above).

 

For example: In addition to a non-promotional purchase, there are two deferred interest purchases on an account - the promotional period for $200 purchase expires February 27th and a $100 purchase expires March 27th.The $200 deferred interest purchase was not paid off by February 27th and the deferred interest is billed to the account. The $100 deferred interest purchase that is coming due on March 27th, and the upcoming minimum monthly payment is $25. A payment of $125 is made prior to March 27th. I understand $25 of the payment would be applied to the minimum payment due as stated in your response above. Would the remaining $100 of the payment be applied to the $100 deferred interest purchase set to expire on March 27th, or to the $200 deferred interest purchase on which the promotional period expired on February 27th?

How do the promotional offers work?

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enslowbulldog
New Community Member

I was quite nervous myself when I started with the promotional offers. In the back of my mind, I thought they may have a trick to make their money. So I would be 3 orders of $200 or more and have to pay all of them off to avoid the interest. But it is clearly stated when you go into Pay Pal Credit at the bottom of the page. Each purchase is listed with the purchase amount, date of purchase, remaining balance to pay, and date the offer is over to avoid charges. Click on the arrow in side of the box it is in and it opens up more to show actual interest that would be going onto the bill if not payed in time. So each payment goes directly to the one closest to going over first, and then to the next and so on. I made an order that was not qualified for the 6 mo because it was several seperate items to make $200. I was sick because I thought I may have to pay the others off and this last because it was my last purchase. But it takes care of the ones that are most in need to avoid interest You can select as well where your money is going to go but I was always good with the way they payed it so far.

How do the promotional offers work?

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formerlythere
New Community Member

Nicole,

 

I have a similar situation. I have one purchase (made in October 2014) that was made under the 12-month, no interest promotion terms. I have a second purchase made this January under six-month, no interest terms. However, I do not see a way to proportion out the monthly payments that I made to each individaul purchase. Is there a way to do that? For example, if I pay $150 for this month's billing cycle, can I assign $100 of it to the 12-month promotion and the remaining $50 to the second promotion period?

 

Thanks!

How do the promotional offers work?

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PayPal_Nicole
Moderator

Hi formerlythere-

 

Great Question! Thank you for asking.

 

Yes, you can choose to allocate your payments, but only the portion of the payment over the minimum amount due.

 

This feature is not available on the website, but Customer Support would be happy to help.  The allocation can be requested by phone at 866-528-3733 or through email by clicking the "Contact Us" link in your account.

 

 

Typically, when you pay more than the minimum amount, the excess amount will be applied as follows:

 

1. Promotional balances where the promotional period will end in the next two billing cycles.


2. Existing revolving balances, including interest and fees (if any), in order from highest to lowest Annual Percentage Rate (APR).


3. Promotional balances expiring more than two billing cycles from the date we receive your payment, in order of their expiration date.


4. Activity that has occurred on your account since your last statement date.

 

To avoid paying interest on promotional purchases, be sure to pay your promotional balances in full before the expiration date. You can find this information by reviewing the "Active Promotions" portion of your online Statement Snapshot on our "Statements" page, or by checking the "Deferred Interest Calculation" section of your paper statement.

 

The order in which we apply your payments was determined according to the Credit Card Accountability, Responsibility, and Disclosure (Credit CARD) Act of 2009 and the Terms and Conditions of your account.

 

I hope that helps!

Thank you,
Nicole
PayPal Credit

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