- What Perpay is and who runs it
- How Perpay payments come out of your paycheck
- What kind of agreement you're making with Perpay
- Perpay and your credit score
- Perpay+ and what it does
- Returns and refunds at Perpay
- Disputes with Perpay: arbitration
- Perpay lookalikes and fake offers
- Perpay at a glance
- My verdict on Perpay
- Frequently asked questions
Perpay is a real US company, Perpay, Inc., that lets eligible shoppers order items and repay them automatically from their paycheck. Its own terms say orders create a non-recourse intention to pay agreement and that all payments are non-refundable except under a posted refund policy. It reports to the credit bureaus, so late payments can hurt your score.
Perpay gets searched by people who want a new phone or laptop but can't pay for it all at once, and I understand the appeal. It also sits in an area where small print matters a lot. So I've read Perpay's own homepage and its terms, and I'm going to tell you what they say rather than what I'd like them to say.
What Perpay is and who runs it
Perpay's terms say Perpay, Inc. is a Delaware corporation. Its homepage describes a shop where you buy items and make payments over time, taken automatically from your payroll direct deposit. It says it works with members at over 50,000 companies.
It also offers a credit card. Perpay says that card is issued by Celtic Bank and is not available to residents of New Hampshire, Vermont or the US territories. The shop itself, per the homepage, is only available to eligible consumers residing in the United States and is subject to credit approval.
How Perpay payments come out of your paycheck
This is the bit that makes Perpay different from a normal store. Perpay's terms say you must set up Payroll Direct Deposit, which sends a portion of your paycheck to a Program Account each pay cycle. The terms say setup and upkeep carry no fees.
- Payments go to your active orders, oldest first.
- If you stop the payroll deposit, you become ineligible to place new orders.
- The deposit can be set up through a third-party tool named in the terms.
The upside is you don't have to remember due dates. The downside is the same: money leaves each paycheck whether or not the month has been a tight one. If you're thinking of using it, check your own pay-cycle budget first.
What kind of agreement you're making with Perpay
The terms say that placing an order creates a non-recourse intention to pay agreement. I'm not a lawyer, and that wording is worth reading in full rather than relying on my summary. What I can say is that the terms describe the arrangement in their own category, so don't assume it behaves like a store credit card or an ordinary loan.
Perpay and your credit score
Perpay's homepage says it reports your transactions to Experian, Equifax and TransUnion. It claims scores rise by 30+ points on average in the first year. A footnote bases that on about 50,000 Perpay+ customers who started at a score of 550 or below.
The same footnote says there is no promise of any score improvement and that individual results may vary. The homepage also warns that late payments may result in payment reporting that can negatively affect your score. Perpay's terms say it can't promise any improvement. So reporting works in both directions. On-time payments might help and missed ones can hurt.
Perpay+ and what it does
Perpay's terms say Perpay+ costs 5 dollars per month, paid through your payroll direct deposit. They say it doesn't include any extension of credit and that it reports a spending limit of up to 1,000 dollars. The terms add that Perpay will not charge extra fees because of missed or late payments.
Perpay states Perpay+ is only for eligible account holders. I'd read its terms for your own situation before you join, because fees apply.
Returns and refunds at Perpay
Here's the catch many people miss. Perpay's terms say return eligibility varies by product and some items may carry a shipping and restocking fee. They say damage claims must be submitted within 24-48 business hours of delivery.
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They also say all payments are non-refundable except under any separate refund policy posted on the services. If an order goes wrong, report it quickly and keep your messages.
Disputes with Perpay: arbitration
Perpay's terms say disputes go to individual arbitration unless you opt out. To opt out, you must send a signed notice by mail within 60 calendar days after first use. Class actions are excluded. Before starting arbitration or a lawsuit, the terms give a 30-day period to cure a material breach after notice.
Most people never read this section. It's worth ten minutes, because it decides what you can do if something goes badly.
Perpay lookalikes and fake offers
The name is well known, so watch for texts or emails claiming a payment is overdue or offering extra spending power. Go to the website by typing it in yourself, and never share login codes. If you're short on cash, the saving tips that made a difference for me might be a calmer first step than more spending power, and how APR works helps when you compare any credit offer.
Perpay at a glance
| Question | What Perpay's own pages say |
|---|---|
| Who runs it? | Perpay, Inc., a Delaware corporation |
| How do I repay? | Automatically, from payroll direct deposit |
| Who can use it? | Eligible US residents, subject to credit approval |
| Credit reporting? | Reports to Experian, Equifax and TransUnion |
| Refunds? | All payments non-refundable unless a posted refund policy applies |
| Late fees? | Perpay+ terms say no additional fees for missed or late payments |
My verdict on Perpay
It looks like a real company that does what its pages describe. Whether it's right for you depends on how happy you feel about cash leaving your paycheck automatically, the refund wording and credit reporting that cuts both ways. Read the terms, check your budget, and decide for your own situation. I'm not offering financial advice.
Frequently asked questions
Is Perpay a real company?
Yes. Perpay's terms say Perpay, Inc. is a Delaware corporation, and its homepage says it works with members at over 50,000 companies.
How do I repay Perpay?
Perpay's terms say you set up Payroll Direct Deposit, which sends a portion of your paycheck to a Program Account each pay cycle. Payments go to active orders, oldest first.
Does Perpay report to credit bureaus?
Its homepage says it reports your transactions to Experian, Equifax and TransUnion, and that late payments may negatively affect your score. It also says there's no promise of improvement.
Can I get a refund from Perpay?
Perpay's terms say all payments are non-refundable except under any separate refund policy posted on its services. Return eligibility varies by product.
Who is the Perpay credit card from?
Perpay says its credit card is issued by Celtic Bank and is not available to residents of New Hampshire, Vermont or the US territories.
