>1 Zip can only be used for US purchases. Certain merchant, product, goods, and service restrictions apply. For a $200 purchase, you'd make four $51.50 payments every two weeks starting today for a 52.18% annual percentage rate and a total of payments of $206. A $6 installment fee is charged at commencement - you pay $1.50 of this fee as a prepaid finance charge when you make your initial payment today. The remaining $4.50 is included in your future payments. Minimum purchase of $35 required. Estimation of installment payment and annual percentage rate excludes potential tax and shipping costs. Installment fees are $4 for purchases from $35 to $99.99, $5 for purchases from $100 to $199.99, and $6 for purchases $200 and above. Zip Pay Anywhere financing through Zip issued by WebBank, except for Zip originated loans in CO, NV, MA, and MD. All loans subject to credit approval.
I give this service an A rating. It has low fees, comparatively. Make payments on time = good service.
As for when someone doesn't make a payment, they reserve the right to retry as many times as they want at arbitrary intervals like every single day.
What I am giving credit for is that although the user may rack up NSF fees from their banks, the user will NOT rack up fees from the credit provider, as far as I can see from the TofS.
Relevant selections from TofS:
Debit and Credit Card – Payments made by debit and credit card will be subject to the terms and conditions established by the card issuer. If charges cannot be processed through your debit or credit card, or if your bank draft or electronic funds transfer is returned for insufficient funds, you will be responsible for any fees incurred and Zip will have no liability with respect thereto.
(c) You are responsible for ensuring that you have sufficient funds in your bank account or available via your Card on File to make Automatic Payments on the dates specified in your Billing Schedule. To the extent permitted by applicable law and in accordance with any other agreement provided to Zip authorizing Zip to debit your Card on File, you authorize Zip to satisfy any monetary liability you owe Zip by: (i) debiting your preferred Card on File on file with Zip at a later time or date; (ii) debiting any other Card on File of which you have provided details; or (iii) any other legal means.
(e) You agree that you grant authorization to Zip to make the transfers from any of your bank account(s), debit card(s) and/or credit card(s) to fulfill a missed or late payment and any associated fees. You give Zip the right to resubmit any transaction you authorized that is declined, dishonored or returned for insufficient or uncollected funds or any other reason.
You also agree that if you fail to pay any amount owed to Zip pursuant to this Agreement, Zip may engage in collection efforts to recover such amounts from you. These collection efforts may involve contacting you directly, submitting your information to a collections agency, or taking legal action. We may report information about this Agreement to credit bureaus. Late payments, missed payments, or other defaults on this Agreement may be reflected in your credit report.
Actually, on second reading, I take it all back. This line is ambiguous and technically makes the user responsible for "all" fees, which presumably includes fees to the service provider. Even more shady is these fees aren't stated
"If charges cannot be processed through your debit or credit card, or if your bank draft or electronic funds transfer is returned for insufficient funds, you will be responsible for any fees incurred and Zip will have no liability with respect thereto."
As a reasonable human, I read this to mean no fees paid to the service provider.
As a proficient reader, this means the user is agreeing to paid undisclosed fees.
Is this an example of over broad TofS turning away customers, or TofS designed to screw over customers?
If there is no option to term the debt out past a couple weeks, who cares what the APR is?
It's a fixed 4 dollar fee on 200. That's not the kind of debt that gets people in trouble. These people are much more likely to get nailed on the 20% APR portion which they finance on the card.
