Is interest applied if I purchased an item over £99, but then it gets partially refunded?

[Agent-Smith]

Hi all,

As per the title, is interest applied if I purchased an item over £99, but then it gets partially refunded?

Let's say I purchase a few items of clothing and the total comes to £110. This will take me over the £99 threshold where 0% interest is applied for 4-months. However, if I then return a couple of items and it brings the total price down to say £80, will my account be charged interest? 

Also, what happens if I have my repayments set to a fixed amount each month, have paid some off, then get a refund, how is that handled? Will the interest be retrospective or just on the amount left, if at all?

Or, is it that as long as the initial price paid is above £99, the 0% for 4-months is applied regardless of refunds or if no initial payment has been made or if a number of repayments have been made?

Cheers

Mitch

[Agent-Smith · Accepted solution]

Hi all,

I rang PayPal Credit to get an answer on this and was told that as long as the initial price is £99 or above, the 0% for 4-months is applied regardless of refunds or if no initial payment has been made or even if a number of repayments have been made. Basically no re-calculation and backdating is applied.

So for example, if you purchase an item for £99, get a £98 refund, you still get 4-months 0% interest free to pay the £1 back. There is no limit or restrictions to this, other than your credit limit of course.

Hope this helps

Cheers

Mitch