is perpay legit or scam? perpay Reviews & complains 2023

Introduction

In the age of e-commerce and digital transactions, new financial services have emerged to cater to the evolving needs of consumers. One such service is Perpay, a buy now, pay later (BNPL) platform that enables customers to spread the cost of their purchases over affordable monthly installments. Founded in 2017 and headquartered in San Francisco, California, Perpay has gained traction in the world of online retail as an alternative payment option similar to popular BNPL services like Klarna and Afterpay.

However, as with any financial service, it’s essential to scrutinize its legitimacy and assess its pros and cons. In this comprehensive blog post, we’ll delve into the world of Perpay, examining its features, customer reviews, and whether it is indeed a legitimate company.

What is Perpay?

Perpay’s core offering revolves around providing customers with a flexible payment solution. Founded in 2017, Perpay is headquartered in San Francisco, California. The essence of Perpay is to offer an alternative payment method at online retailers, allowing customers to split the cost of eligible purchases into four interest-free payments due every two weeks. Notably, Perpay does not conduct a hard credit check during the application process, making it accessible to a broader consumer base.

Moreover, Perpay reports these purchases to credit bureaus, enabling users to build their credit history. Late fees are not part of their revenue model; however, it’s vital to understand that accounts with unpaid balances may be turned over to third-party collections agencies if payments are consistently missed.

Is Perpay Legit or a Scam?

When considering a financial service provider, particularly a relatively new one like Perpay, validating its legitimacy is paramount. Protecting one’s finances and personal information is a top priority. Here are some key indicators suggesting that Perpay is a legitimate BNPL provider:

1. Licensed Lender in All 50 US States: Perpay is registered as a licensed lender in all 50 US states and is compliant with federal and state laws. This level of regulatory adherence is a strong indication of a legitimate financial service.
2. Verified Business Profile: Perpay has secured a verified business profile on various reputable sites such as Google, Facebook, and the Better Business Bureau (BBB). These profiles are typically reserved for genuine businesses with a public presence.
3. Lack of Fraudulent Activity Reports: There are no widespread reports of fraudulent activity or significant complaints lodged against Perpay with regulatory bodies. In the absence of such complaints, the company appears to be operating honestly.
4. Identified CEO and Executive Team: Perpay’s CEO and executive team members are publicly identified. Their backgrounds reflect experience in finance and technology, lending further credibility to the company.
5. Venture Capital Backing: Perpay is backed by reputable venture capital firms such as Accel, TPG, Goldman Sachs, and more. The involvement of these well-known investors typically indicates a legitimate and promising venture.
6. Over 10,000 Retailer Partnerships: Perpay boasts partnerships with over 10,000 verified retailers. Achieving such extensive collaborations would be an incredibly challenging feat for a scam operation.
7. Positive Customer Reviews: The number of positive reviews outweighs the negative ones on third-party review sites. While even legitimate companies can have occasional issues, the consistent positive feedback suggests a trustworthy service.
8. Transparency and Contact Details: Perpay provides transparent information about its contact details and physical addresses that match its official registration. This transparency is a hallmark of a legitimate business.
9. Dispute Resolution: Customers report being able to file disputes that are addressed, indicating that Perpay has a system in place to handle and resolve customer concerns.
10. Lack of Hidden Charges: The majority of users report no misleading or hidden charges associated with Perpay’s services. This transparency is characteristic of a legitimate company.

While no business is entirely free from isolated issues or customer complaints, the evidence suggests that Perpay operates genuinely and does not pose major risks to its customers. The structure of Perpay is similar to other reputable BNPL providers, further reinforcing its legitimacy.

However, as we delve deeper into the service’s features, it’s essential to be aware of certain caveats and nuances that could impact your experience.

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How Does Perpay Work?

To understand Perpay better, let’s explore how the service functions:

1. Checkout Process: During the online checkout process at a participating retailer, you can select “Pay with Perpay” as your payment method.
2. Verification: You will be required to provide basic contact and billing information for verification purposes.
3. Payment Options: You have the choice of either paying the full amount upfront or splitting the cost into four equal payments. These payments are scheduled to be due every two weeks.
4. Immediate Charge and Shipment: If you choose to split the payments, the entire purchase amount is immediately charged to the retailer, and your items are shipped.
5. Payment Reminders: Perpay sends payment reminders via email leading up to the due dates to ensure that payments are made on time.
6. Auto-Pay Setup: Customers have the option to set up auto-payments from their bank account or debit/credit card. This automated process helps ensure timely payments.
7. Credit Reporting: Perpay reports your purchases to TransUnion. This reporting can help you establish a positive credit history, making it beneficial for users looking to build their credit scores.
8. Late Fees: Perpay does not charge interest, but it’s important to note that late fees may apply if you miss scheduled installment payments.
9. Collections: Accounts with unpaid balances may be turned over to third-party collections agencies, which can have repercussions on your credit and financial status.
10. Customer Support: Perpay offers customer service through phone, email, and chat to address any issues or disputes.

The primary goal of the Perpay service is to make budgeting for larger purchases more manageable through the provision of affordable bi-weekly repayments without incurring interest charges.

Perpay Pros and Cons

Like any financial service, Perpay has its set of advantages and disadvantages. Understanding these pros and cons is essential for prospective users:

Pros:

1. Manageable Installments: Perpay allows users to split purchases into manageable installments over time. This feature can be particularly helpful when buying costly items.
2. No Credit Check Required: Unlike traditional credit services, Perpay does not conduct a hard credit check. This means more consumers, even those with limited credit histories, can access the service.
3. Credit Building: By reporting your payments to credit bureaus, Perpay helps users build their credit scores. This feature is especially appealing to individuals looking to establish their creditworthiness.
4. Interest-Free Option: Perpay does not charge interest if payments are made on time. Users can enjoy an interest-free financing option.
5. Large Network of Retailers: Perpay has formed partnerships with a vast network of participating retailers and brand partners. This extensive availability gives users numerous choices when making purchases.
6. Convenient Reminders: Perpay provides a mobile app and email reminders, making it convenient for users to manage their payments and avoid late fees.

Cons:

1. Late Fees: Users must be diligent about making payments on time, as late fees may apply if installment due dates are missed.
2. Collections: Accounts with significant unpaid balances may be turned over to third-party collections agencies. This can have a negative impact on your credit and financial standing.
3. Limited Recourse: Unlike credit cards, which offer chargeback rights, disputes arising from purchases made through Perpay are handled by the service without the option for impartial mediation if issues persist.
4. Additional Cost and Risk: Splitting purchases into multiple payments can add complexity and a level of risk. Users must be aware of their financial commitments.
5. Short-Term Plans: Perpay’s installment plans consist of only four payments over two months. This makes it unsuitable for users seeking long-term financing options.
6. Opaque Credit Reporting Criteria: Perpay alone controls the data reported to credit bureaus. The scoring factors used may not align with other credit bureaus, meaning the benefits to your credit score might not be uniform.

It’s evident that while Perpay offers accessibility and the opportunity to build credit, there are associated risks and limitations. Irresponsible use or frequent late payments can lead to unfavorable consequences.

Perpay Reviews and Customer Experiences

To gain insight into the actual experiences of Perpay users, we’ve compiled an analysis of Perpay reviews found on popular third-party review sites. This offers a balanced perspective on how customers perceive the service:

Trustpilot (4.0/5 rating from 773 reviews)

• A majority of users indicate that Perpay works well for its intended purpose, helping them spread the costs of their purchases.
• Users praise the easy online application and checkout process.
• Many appreciate the responsive and helpful customer support team, which effectively addresses their concerns.
• Some users mention incurring late fees due to missed deadlines or partial payments.
• There is satisfaction with the service’s ability to help build credit scores over time.

BBB Profile (3.67/5 rating from 310 reviews)

• Users describe the process as stress-free, highlighting the benefits of interest-free financing.
• Timely delivery of purchases and on-time payment processing are commended.
• There are isolated incidents of delays in getting account information disputes resolved.
• Minor errors with credit reporting were reported, but these were corrected upon contacting the company.
• A few users express annoyance with email reminders, despite having the option to opt out.

SiteJabber (2.4/5 rating from 219 reviews)

• SiteJabber contains a higher volume of dissatisfied customers.
• The most common complaints revolve around late payment fees, which some perceive as being assessed aggressively.
• Users report difficulties in getting fees waived or extending payment plans further.
• Poor communication is mentioned when contacting support for account-related issues.
• Occasional reports of problems with retailer order fulfillment despite payments being made.

The reviews paint a diverse picture. The majority of users view their Perpay experiences positively, particularly when they are diligent about meeting payment deadlines. However, frustrations arise from occasional disputes, late fees, or customer support delays. Nonetheless, these reviews indicate that Perpay can serve legitimate use cases for managing costs interest-free, but it may not be suitable for everyone.

Addressing Potential Issues or Concerns

To offer a balanced perspective, it’s crucial to address some of the concerns and issues that consumers have raised regarding Perpay:

1. Lack of Transparency in Credit Reporting Criteria: Perpay controls the data reported to credit bureaus, and the scoring factors used may not align well with other bureaus. While credit is being built, it may not benefit all potential FICO models equally.
2. Aggressive Late Fees: Some users perceive Perpay’s late fees, typically $7-8, as too costly, especially for occasional slip-ups. They are not always waived, even for infrequent offenders making genuine efforts to pay on time.
3. Limited Consumer Protections: Unlike credit cards that offer chargeback rights, disputes directly with retailers are handled by Perpay. There is no recourse to impartial mediation if issues persist.
4. Short-Term Installment Plans: Balances on Perpay are due over just eight weeks, making it unsuitable as a reliable long-term financing option for high-cost purchases that are better managed over 12 months or more.
5. Complicated Returns and Cancellations: Returning an item can lead to complications, as any credits received do not reduce the scheduled payment amounts. This can result in prepaid funds accumulating in account balances when users expect instant credits or adjustments.

While these concerns may not be deal-breakers, they underscore the fact that Perpay may not be a suitable choice for every consumer, especially those with unreliable income flows or those who desire stronger consumer protections. There is room for improvement in communicating these nuances to users and setting realistic expectations.

However, it’s essential to recognize that Perpay has played a significant role in providing access to credit and enabling consumers to budget for larger expenses interest-free. It has catered to individuals who might have otherwise refrained from making certain purchases or turned to higher-cost alternatives. Perpay serves a unique and valuable role in the financial services landscape.

Should You Use Perpay?

In summary, while Perpay does come with certain drawbacks and considerations, it can be an attractive option for consumers seeking accessible no-credit-check financing at online retailers within short installment timeframes. Here’s why it might be worth considering:

• Meets Budgeting Needs: Perpay’s installment option allows users to budget for their purchases more effectively than resorting to delayed gratification or maxing out credit cards.
• Credit History Building: For those who are new to the world of credit or are looking to rebuild their credit, Perpay provides a pathway to building a positive credit history.
• Retailer Partnerships: The fact that numerous online retailers partner with Perpay indicates that it boosts conversions and average order values. This means that more opportunities to utilize Perpay are likely to emerge.
• Transparent Costs: Perpay’s structure provides transparent and predictable costs since there are no interest charges involved.
• User-Friendly Experience: The service offers a streamlined, mobile-first user experience that is simple to adopt and navigate.
• Broad Availability: The extensive availability of Perpay makes it a universally accepted payment option.
• Reputation and Trust: Perpay is trusted by millions of users, and it exhibits none of the red flags typically associated with deceptive operations.

However, it’s essential to acknowledge that Perpay may not be the ideal choice for consumers with unreliable cash flows or those seeking stronger user protections. Additionally, it’s not a substitute for long-term financing.

In essence, Perpay appears to deliver on its core value proposition for installment payments. It operates as a legitimate financial service and offers tangible benefits to users. The key to leveraging these benefits safely lies in respecting payment deadlines and being diligent in managing your financial commitments. With care, Perpay can be a valuable tool for budget-conscious consumers in the world of online shopping.