Paypal Pay Me Later opines?

I have a prospect for some ROI that needs some equipment I can't really front cash for but I am loathe to pass up the opportunity so I'm going to have to borrow it. This Pay Me Later thing is offering me 18 mos no interest provided on-time payments and the total is paid in full before the term... anyone use it? Is it as straightforward as making timely payments or are they sleazy shiny happy people who try to make it as difficult as possible to avoid some penalty that makes you have to pay the interest? The "Terms of Service" do not appear to have much cloak and dagger or legal speak in them but - WTF is in it for them if they are loaning "free" money? There isn't even a sign-on fee.

Disclaimer: no experience with this.

Giant Purple Snorklewacker wrote: I have a prospect for some ROI that needs some equipment I can't really front cash for but I am loathe to pass up the opportunity so I'm going to have to borrow it. This Pay Me Later thing is offering me 18 mos no interest provided on-time payments and the total is paid in full before the term... anyone use it? Is it as straightforward as making timely payments or are they sleazy shiny happy people who try to make it as difficult as possible to avoid some penalty that makes you have to pay the interest? The "Terms of Service" do not appear to have much cloak and dagger or legal speak in them but - WTF is in it for them if they are loaning "free" money? There isn't even a sign-on fee.

WTF is in it for them? See the bolded part of your post. It doesn't cost them hardly anything to do it, and they're probably counting on a ton of people not making payments on time. What does the interest rate go to if a payment is missed?

mtn wrote: Disclaimer: no experience with this.

Giant Purple Snorklewacker wrote: I have a prospect for some ROI that needs some equipment I can't really front cash for but I am loathe to pass up the opportunity so I'm going to have to borrow it. This Pay Me Later thing is offering me 18 mos no interest provided on-time payments and the total is paid in full before the term... anyone use it? Is it as straightforward as making timely payments or are they sleazy shiny happy people who try to make it as difficult as possible to avoid some penalty that makes you have to pay the interest? The "Terms of Service" do not appear to have much cloak and dagger or legal speak in them but - WTF is in it for them if they are loaning "free" money? There isn't even a sign-on fee.

WTF is in it for them? See the bolded part of your post. It doesn't cost them hardly anything to do it, and they're probably counting on a ton of people not making payments on time. What does the interest rate go to if a payment is missed?

It is 19.99999999% so... pretty much what a high rate VISA costs. BUT, who wouldn't just make the payments on time and in full to avoid that? If they charged $25 to sign up or had some kick-back plan from retailers like AMEX does then I would not feel like it's a trap waiting to trick me by sending the invoices 30 seconds before they are due or forcing the only way to pay is in person in NE and only in buffalo nickels or something.

Giant Purple Snorklewacker wrote: It is 19.99999999% so... pretty much what a high rate VISA costs. BUT, who wouldn't just make the payments on time and in full to avoid that?

Have you met the average consumer?

I'm generally scared to death of PayPal. All my transactions have been fine, but I've heard too many (seemingly well-documented) horror stories.

That being said, since they're kind of part of eBayLand, what they get out of it may be just increasing sales via eBay and their fees there.

Plus the observation that a lot of people probably will screw up on payments and spend some time paying 20%...

I have used it once or twice on smaller purchases, not because I didn't have the cash. But, if someone is willing to give me interest free money for 6 months (smaller amounts will only go 6 months with no interest) for something I would buy anyway, I thought it was worth a try. I did not make a single payment until the last day. I paid in full the last day or so of the 6 month period and all was well.

I completely gave up on Ebay and Paypal after being ripped off over a year ago. Purchased something that was a blatant fake - Paypal would only refund if I shipped it back to the seller, with proof of shipping. They refused my claim afterwards, despite an attached copy of the shipping receipt, because I didn't send it with a tracking number ($40 extra!). So.. the fraudulent seller ended up with the purchase amount, original shipping, return shipping... and the item. Screw them.

I use ebay/paypal sparingly. I've never been truly burned by them, but I trust them about as far as I can throw them.

I have used the paypal "bill me later" service. Though tirerack at first when I needed some tires but was light on cash.

You make payments and the amount you owe goes down. Nothing fishy. It works fine. If you miss a payment they call you and ask for money and then you give them some.

I see no reason to avoid it.

dlmater wrote: I have used it once or twice on smaller purchases, not because I didn't have the cash. But, if someone is willing to give me interest free money for 6 months (smaller amounts will only go 6 months with no interest) for something I would buy anyway, I thought it was worth a try. I did not make a single payment until the last day. I paid in full the last day or so of the 6 month period and all was well.

Was it straightforward to use? The seller in this case is someplace I've used before and reputable so I have no qualms about the actual purchase - just that free money while I obtain tools to make money seems a little counter-intuitive. But, you are the second person to say "no problems" so... we aren't talking a million bucks here, just a small free loan to float something that would make things tight if I bankrolled it upfront ... I'm figuring it's worth a shot.

generally, the minimum payments don't get the invoice paid off in time, so you end up paying 19.99% on the full amount, for the full period. That's the gotcha. And they will do that with a penny left. However, if you are responsible, and can pay it in time, in full, then you are good to go.

I on the other hand have processed a load of payments through PayPal and won't do business on eBay any other way. I liquidated about $35k worth of industrial surplus this way over a year or so - very easy and reliable.

I sold a piece of machinery recently where the buyer PayPal'd me the funds in my garage from his phone. I verified they were received that instant - from my phone. It got a sale done.

Deals like the one above bank on X number of people having a late payment and having to pay down the balance at the crazy interest rate. Other than my mortgage - refi'd to 3.5% - and an ep3 Civic bought at .9% for 36 months w/ 50% down, I haven't paid a dime in interest or fees in a decade.

I started with tire rack. Then I found Newegg uses it too...

Don't get stupid with it and you will be fine.

Giant Purple Snorklewacker wrote:

dlmater wrote: I have used it once or twice on smaller purchases, not because I didn't have the cash. But, if someone is willing to give me interest free money for 6 months (smaller amounts will only go 6 months with no interest) for something I would buy anyway, I thought it was worth a try. I did not make a single payment until the last day. I paid in full the last day or so of the 6 month period and all was well.

Was it straightforward to use? The seller in this case is someplace I've used before and reputable so I have no qualms about the actual purchase - just that free money while I obtain tools to make money seems a little counter-intuitive. But, you are the second person to say "no problems" so... we aren't talking a million bucks here, just a small free loan to float something that would make things tight if I bankrolled it upfront ... I'm figuring it's worth a shot.

Yes, it was quick and easy to use. My experience was good.