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Quadpay (Zip): Is Paying Later Worth It?

Quadpay — now Zip — is a “Buy now. Pay later.” platform. They allow you to “split any purchase into 4 interest‑free installments over 6 weeks” which sounds amazing, right?

But what are the risks? And what’s the catch? Keep reading to learn more.

How does Quadpay (Zip) work?

Zip, formerly known as Quadpay, lets you buy anything you want (yes, we mean anything) online or in-stores. You can think of it kind of like a small, short-term personal loan or credit card.

Once you download the app or add the Chrome extension, Zip will essentially buy the product for you, and you’ll pay back your purchases in 4 payments over a six-week period. The payments are automatically made every two weeks from the debit or credit card you link to your account. But don’t worry, Zip always sends advance notifications so you won’t ever miss a payment or be surprised. 

Before installing, familiarize yourself with the fees and the risks that could affect your credit score negatively. Read more below.

Using Quadpay (Zip) in a store

After installing the Zip app, simply link the payment card you want to use and start shopping. Zip is accepted anywhere Visa is — it’s really that easy. 

When you’re in a brick-and-mortar store and it’s time to check out, select the “In-Store” tab in the app. Enter the total amount of your purchase(s) and payment method to bring up your virtual card. You’ll then see the total broken down into the 4 amounts you’ll pay over the next six weeks. Make sure to keep Zip in your Apple Wallet or Google Pay for easy access.

Using Quadpay (Zip) for online purchases

Using Zip to shop online is just as fast and easy as it is IRL. Open the app and search for your favorite stores (trust us, everything from Target to Everlane is on there) and begin adding the products you want to buy to your cart. 

When you’re ready to check out, tap “Pay with Zip.” Double-check the cart amount matches the payment request in Zip and then you’re all set to complete the purchase. Zip will autofill your payment info in seconds.

What’s the catch?

Spending limits when using QuadPay (Zip)

Here’s the catch you’ve been waiting for. There are spending limits when you use Zip and they’re determined as soon as you fill out the application for an account. The max amount they offer is $2,000.

Depending on the plan Zip approves you for, your transactions can be denied if they go over your limit. You’ll see your available balance displayed on the home screen and it’s adjusted in real-time as you spend. 

Be careful though — after all, you are borrowing money. Treat it like credit card debt and make your payments on time to avoid late fees. If your purchase can wait, we’d recommend saving up for your purchase. Try our 52 Week Money Saving Challenge to set aside over $1,100 in one year.

Quadpay (Zip) late fees

Like many other buy-now, pay-later companies, Zip charges late fees as much as $5, $7, or even $10 depending on the state you live in. They will also send any outstanding borrowers to a collection through their automated process, which runs you the risk of hurting your credit.

Frequently Asked Questions

Does Quadpay (Zip) charge fees?

As we’ve mentioned, Zip offers interest-free payment plans. But every time you use the Zip app to make a purchase,  you’re subject to a $1.00 platform fee per installment plan. So if you take all four payments, you’ll pay $4.00 in platform fees on top of the cost of the goods or service and taxes. And if you use Tap & Zap abroad, you’ll be charged an extra 1% fee for the international transaction.

Is Quadpay (Zip) safe?

When you apply for Zip, you’ll have to give your name, address, date of birth, phone number, and your payment method (your credit or debit card). This information is used to create a secure account that creates a virtual card number each time you make a purchase. So it’s safer to buy things because this virtual number is not connected to your actual personal bank account information.

Does Quadpay (Zip) check credit?

Zip will not check your credit, but you will have to go through their approval process. It can be a helpful option if you need access to financing for smaller purchases and can’t get it any other way. 

Watch our video to understand if using BNPL or credit cards are better for your credit score.

Does Quadpay (Zip) report to credit bureaus?

Zip does not report directly to credit bureaus, so they won’t report on any one-time or late payments. This theoretically also means there won’t be an impact on your credit rating when you use Zip! 

However, if you don’t make your payments and your account goes to collections, Zip may report you to credit bureaus. It’s also important to remember that if you miss payments on the credit card associated with your Zip account, this will negatively impact your credit score.

Does Quadpay (Zip) charge interest?

Zip’s installment plans are completely interest-free! However, if you choose to use their Zip Money feature, there will be a 19.9% APR (annual percentage rate) after their interest-free promotional period ends.

Abigail Masterson

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