Buy now, pay later (BNPL) services have surged in popularity, with consumers spending a staggering $991.2 million on Cyber Monday alone. While these services provide a flexible payment option for larger purchases, they come with significant risks, particularly when it comes to returning items. Unlike traditional retail returns, BNPL transactions may involve complex processes, as many retailers require returns to be initiated through third-party portals or specific apps, rather than directly at the store. This can create confusion and frustration for consumers. Additionally, BNPL services lack the buyer protections that credit cards offer, meaning consumers could still be on the hook for installment payments even while waiting for a return to be processed. Refunds can also vary widely, complicating the financial aspect of returns. Experts recommend that consumers carefully read the terms and conditions of BNPL services and understand the return policies before making purchases, especially when buying gifts.
Read the full article here.