Buy now, pay later options can be found everywhere these days — available at checkout retailers like Amazon and Walmart, and even at restaurants and grocery stores.
With so many buy now, pay later apps sprouting up, we’re taking a look at the security concerns and risks of using them.
You can divide the cost of a large or small purchase into four equal payments, and spread them over several weeks or even months.
This is why the popularity of apps like buy now, pay Later has grown.
According to a Consumer Reports survey conducted recently, 21% said that they have used the buy now and pay later option at least one time.
But not surprisingly, there’s some important fine print you need to be aware of.
“There are questions about these loans’ lack of critical consumer protections. so, we tested some of them, to check how safe they really are for consumers,” Consumer Reports Investigative Reporter Lisa Gill said.
CR analyzed the safety, privacy and transparency of eight popular apps that allow users to pay now and pay later.
PayPal scores 89 out 100. They have high ratings for fraud protection as well as good security practices.
CR says some other apps leave a lot to be desired — Perpay and Zilch pulled up the rear with scores of 69 and 70, performing poorly in CR’s privacy control tests, and there’s more.
“Our results found some troubling issues — like not all of them clearly disclose loan fees,” Gill said.
To help if you do get hit with hidden fees, CR says to be sure to take screenshots of each loan term page before you hit “accept.”
It could be helpful if in the future you need to call customer service.
CR also warns against fraud and id theft when using such apps.
“You should make it a habit to regularly check your buy now, pay later account to monitor for fraudulent charges, and to review all transactions and email notifications from your provider,” Gill said.
If you can’t pay on time, notify the company in advance because you may be able to reschedule a payment.
Copyright 2023 WSLS 10 – All Rights Reserved.