What is Zip and How Does ZipPay Work?

Understanding ZipPay



Looking for a payment option that allows you to shop retailers repay in just 3 or 4 easy instalments? Why not consider paying with Zip?

Here’s what you need to know about returns, how it works, eligibility, safety features and much more.

For more offers on Buy Now Pay Later products, take a visit to our Solutions page.

Openpay UK is a relative newcomer in the UK buy and pay later market, which first became popular in Australia. Openpay allows customers of retail partners to purchase their items and spread the costs of their purchase over 30 days to 7 months.

Zip Pay works by letting shoppers make purchases now and paying later. Once you’ve signed up to up Zip and are approved, you’ll be given a credit limit for your shopping account. Allowing you to make purchases online and in-store and payback in regular instalments through your ZipPay account.

To make a purchase online, you’ll need to select Zip as your payment method when you checkout with selected partnered retailers. You’ll then be redirected to zipping where you’ll either need to log in or sign in to your account to complete your transaction.

You will be asked to pay a minimum payment of 25% of your total as a deposit on the day of purchase. Other instalments will be debited from the card you signed up with fortnightly from the date of purchase.

To make purchases in-store, when visiting partnered retailers, visit your Zip account via the app on your smartphone. Before you checkout create a 6-digit number and QR code and save it to your digital wallet, which you’ll need to show to the cashier when you checkout.

You will be asked to pay 25% of your total as a deposit on the day of purchase. Other instalments will be debited from the card you signed up with fortnightly from the date of purchase.

Zip money comes at no extra cost for the shopper; there are no fees and is completely interest-free. However, there are defaulting fees should payments go unpaid. Defaulting fees are charged at £4 with a further £4 for each week after that that you are unable to pay.

Credit assessment and affordability checks are performed when you first sign up for a Zip pay account. Customer’s spending limits are based on the information available on their credit reports. Their spending limits will increase each time they use the service, ensuring that the payments are upheld.

Zip Pay is a credit method that allows you to buy now and pay later without and interest and differs from traditional forms of credit. However, they can still affect your credit score if you don’t keep up with your bi-monthly payments, which may harm your ability to take out credit in the future.

Fortnightly repayments are collected by direct debit from your bank account or can be made manually via your Zip portal. As customers will have already been required to pay a deposit, your purchase will be repaid in just six weeks. Your repayment schedule will be as follows;

  • 1st payment: 25% of your total on your day of purchase
  • 2nd payment: 25% of your total two weeks after purchase
  • 3rd payment: 25% of your total four weeks after purchase
  • 4th payment: final 25% of your total six weeks after purchase

If you wish to return all your order, then please refer to the standard returns procedure with the retailer with who the purchase was made. Once your return has been processed, the retailer will then process your refund with Zip. Zip will then either make the appropriate adjustments to your payments or issue a refund.

Zip has a buyer protection policy to protect and ensure the rights of its customers and is PCI DSS Level 1 certified compliant Service Provider organisation.

When you sign up to use Zip pay, you will need to provide the following details along with your application;

  • Name
  • Date of Birth
  • Current home address
  • Valid UK debit or credit card

If you have missed a payment, then you can make a manual repayment via your Zip portal. Ensuring that you pay by midnight on the day on your instalment due date, you’ll avoid a late payment fee of £4. This fee applies for every week your instalment goes unpaid.

Please note that if your circumstances have changed and you know that you may be unable to make a payment before it is due, you should contact them directly to make them aware of your situation and discuss your options.



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