Sezzle was founded in 2016 and has become one of several players in the BNPL industry. The service’s primary business is online, and in September 2020 it launched the Sezzle Virtual Card, which customers can add to their Apple Pay or Google Pay apps and use for in-store purchases. If you’re intrigued by the idea of BNPL services, here’s what you should know about Sezzle. Once you’re approved, you’ll make the first of four interest-free installment payments immediately. Then, you’ll make three more equal installments every two weeks for the next six weeks. You can choose to connect a bank account, debit card, or credit card to make your installment payments. This is because Sezzle pays the merchant in full for your purchase, which means you owe the remaining balance to Sezzle and not the retail store. Through Sezzle Up, Sezzle reports your payments and balance to the three national credit bureaus monthly. As long as you make your payments on time, the reporting should improve your credit score, but if you miss a payment for 30 days, Sezzle will report it, and your credit score can suffer as a result.
Your purchase amount exceeds your limit. You entered incorrect personal or payment information when you signed up.Your Sezzle account has missed payments or an unpaid order.
However, there are fees if you fail to make a payment or have to reschedule a payment more than once. The company always adds your fees into your regularly scheduled payment, so if you see a separate fee from your bank or credit card company, it isn’t from Sezzle. However, in regards to your budget, Sezzle can present some of the same dangers as credit cards. Having the option to buy items now and pay for them later can cause you to spend more than you can afford to pay back. Of course, overspending with Sezzle is less damaging than with credit cards, because there’s no interest involved, but it can still strain your budget and impact your overall financial well-being. Participating retailers include:
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The company will run a soft credit check and let you know instantly whether you’re approved. You’ll make your first payment, which is 25% of the total purchase amount, at the point of purchase. Your next three payments will be charged to your payment method automatically over the next six weeks. Based on the value of the refund and your outstanding balance, Sezzle will cancel or reduce your future payments and also possibly refund previous installments to your payment method with the service. If the merchant issues a refund in the form of store credit, cash, or any other way, it won’t impact your Sezzle balance, and you’ll need to keep making payments as originally agreed.
