Paypal credit workings?

[elliotharding92]

Hi everyone. Hope who is reading this is doing good. I just have a general question. When doing paypal credit for a purchase, does paypal pay of your item in full so you only owe paypal the amount or are you still making payment to the original company and paypal are just taking shares?

[sharpiemarker · Accepted solution]

@elliotharding92 

PayPal pays the merchant in full, who most times don't even know you're paying with PayPal Credit. All they care about generally is receiving payment. Then PayPal bills you and you pay it back, according to the terms of offer and the credit agreement, just like you would like any credit card.

When you use a credit product, you always pay the creditor back because you already paid the merchant at time of purchase via the credit product. That should be pretty apparent. Never heard of using a credit product and then still owe the merchant and the creditor....like you demonstrated gets paid back by the merchant by getting a cut.

[elliotharding92]

Thanks for making me 100% love the fast feedback.