Returning Buy Now, Pay Later gifts is more complicated

HOUSTON - Buy Now, Pay Later (BNPL) financing boomed during this holiday shopping season. PYMNTS data found one-third of shoppers used BNPL loans on Black Friday alone.

But the return process on BNPL purchases is different, and you may have to keep making payments after a return.

Buy Now, Pay Later financing, such as Affirm, Klarna, and AfterPay, lets shoppers spread payments over several weeks or months.

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But returning a BNPL purchase can be complicated. The Consumer Financial Protection Bureau says disputes over these returns are common.

Start by looking at the return policy for both the retailer and the BNPL lender. It may recommend returning an item in a store to ensure it gets there.

Then get receipts for your return. Confirm the BNPL lender has a record of the return or let them know about it.

Because BNPL is a loan, consumer advocates say you may need to keep making some payments until the lender confirms the return.

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"So unless you were told specifically by the BNPL provider that you don’t need to make any more payments, it’s probably in your best interest to make payments to make sure you don’t get hit with a late fee or anything like that simply because of a quirk in timing," explained Matt Schulz with LendingTree.

Stay on top of your refund with the BNPL. If you're not credited, you can contact the BNPL and the Consumer Financial Protection Bureau.