Bill Me Later is a new payment method available to consumers by the same people who run PayPal! Bill Me Later allows consumers to buy a product now, and pay it off later.
Sellers love it because they are not charged any additional fees outside of their normal PayPal fees, and they get paid immediately directly from Bill Me Later upon completion of order!
Buyers love it because it gives them flexibility to pay for items over time, rather then in one lump sum.
Here's how it works:
- Buyers can use this service only on purchases of $99 or more.
- Before authorizing the purchase, Bill Me Later will either approve or deny the charge.
- If the buyer is approved the seller will be paid immediately by Bill Me Later into their PayPal account.
- If the buyer is declined, the payment will not go through and another form of payment will be required.
- Upon completion of the order, buyers will create a credit card like balance with Bill Me Later for the cost of the order. The standard APR for that balance is 19.99%
- On qualifying purchases, the buyer will have up to 6 months interest free to pay the amount back to the Bill Me Later service.
For sellers, there is no complex configuration to get this service added to their site. They just have to already accept PayPal and put a Bill Me Later banner on their site, to let their buyers know they can use that as an option to pay.
However, there are some products that do not qualify for the service, see here for details. More information on how transactions for Bill Me Later look on the buyers end and how to properly categorize those transactions is viewable here.