Advertising Paypal Credit

[BlackMagicX]

Ok, so this seems like advertising credit is a bit of a grey area with Paypal, because they will offer credit to the customer regardless of if you've advertised it or not. And according to UK Law, in order to offer or advertise 'finance' a business must be FCA approved, unless it's instalments of no more than 4 over a 12 month period (correct me if I am wrong).

So the question is, do the same rules apply to a business who suggests that monthly payments with Paypal is a possibility? Or is this just, no?

Can you advertise 4 payments over a 12 month period with Paypal without being FCA approved?

It seems like a big ball ache for a small businesses to be honest, but it's good to clear things up.

Thoughts?

 

[thelegalstop]

If you sell your items and provide Paypal as a method of payment, then it's them offering the credit not you. Your responsibility would be to truthfully promote your own products and services, and to make a clear distinction that Paypal credit is just one of the payment methods for your items.

Alongside, of course, other methods you may want to accept (e.g. credit cards, cash, etc.)

Theoretically, you are not involved with the crediting process and you are not arranging for the credit to be put in place, as it's all done on the Paypal's side (or even on their website).

However, you are right - this may become a grey area once you start advertising specific payment plans or credit financing options. You need to make sure that your website documents (e.g. Terms and Conditions and Website Terms of Use) state clearly where your responsibility ends and where Paypal credit steps in.

Provided you comply with these rules and separate yourself from the financial services they supply, there should be no requirement to register with the FCA.

Let me know if you need any help - I'll be happy to quickly look over your documents and suggest improvements, where necessary.