Klarna, Affirm, and Afterpay are the top BNPL providers in the US in 2023, and with good reason; they all provide that coveted interest-free Pay-in-4 plan.
PayPal released its Pay-in-4 plan in August 2020 and it seems to have served them well seeing their position as the number one most downloaded BNPL app according to a September 2023 Statista survey.
Chase has also been chasing the Buy Now, Pay Later train, launching My Chase Plan in November 2020. However, while My Chase Plan offers its users interest-free installment plans on their credit card purchases, the monthly fee it charges puts it one step behind most short-term BNPL plans.
But did you know that Chase launched an actual Pay-in-4 BNPL plan in 2023? It’s aptly called Chase Pay in 4 and it might actually be better than your traditional pay-in-4 BNPL plan.
What is Chase Pay in 4?
Chase Pay in 4 is a feature of the Chase online and mobile app that allows you to pay for a debit card purchase worth $50 – $400 in four interest-free installments.
It’s important to note that this feature isn’t available at the point of sale. You’ll need to pay for a product in full using your Chase debit card as a first step.
You can then select that purchase in your Chase checking account activity and choose to split it into four payments. If it’s eligible for Chase Pay in 4, you’ll promptly receive a full refund (that you’ll have to pay back in four installments of course).
Who is Eligible for Chase Pay in 4?
Chase Pay in 4 is available to Chase checking customers in the United States and its Territories that pass the following requirements:
- At least 18 years of age (19 in Alabama and Nebraska, 21 in Puerto Rico)
- An active Chase checking customer for a minimum of 6 months
- Have an active Chase debit card
- Have an active Chase Online or Chase Mobile app profile
Aside from these, eligibility for Chase Pay in 4 is also affected by your deposit account activity, balance, and payment history with other Chase products.
💡Note: Not all Chase checking accounts are eligible for this either. Here is a list of Chase accounts that aren’t eligible for Chase Pay in 4:
- Chase First Checking
- Chase High School Checking
- Chase Secure Checking
- Chase Business checking accounts
- P. Morgan Private Bank customers
How Do I Set Up Chase Pay in 4?
If you purchased something using an eligible Chase debit card in the past seven days, then you can set up Chase Pay in 4 by following these steps:
- Open the mobile app or sign into Chase Online
- Go to your checking account activity.
- Choose an eligible debit card purchase between $50.00 and $400.00
- Choose the split into 4 payments option
- Create your payment plan
After you do this, the full purchase amount should be refunded within 24 hours. Your first payment will be due in 2 weeks. The succeeding three installments will also be due every 2 weeks.
What’s the Spending Limit of Chase Pay in 4?
Unlike most BNPL providers, Chase Pay in 4 has a static spending limit of $400.00 across all active plans. This is a bit on the low side in terms of BNPL purchase power. On the upside, the static spending limit allows users to properly budget their expenses.
💡 Note: Since the $400 spending limit is shared by all active plans, you’ll need to schedule your purchases accordingly.
How Good Is Chase Pay in 4 Compared to the Alternatives?
Chase Pay in 4 is arguably better than most pay-in-4 BNPL plans on two fronts:
- You don’t have to pay 25% upfront.
- You need to purchase the product first before applying for pay-in-4 financing.
Purchasing the product outright before being refunded the full amount is a pretty roundabout way of financing something. And that is probably a turn-off for a lot of people since BNPL is often used to increase buying power.
However, this method acts as a guardrail that can prevent users from overextending themselves financially. Which is a pretty big problem when it comes to Buy Now, Pay Later.
Can You Build Credit with Chase Pay in 4?
No, Chase Pay in 4 doesn’t build your credit just like most other Buy Now, Pay Later (BNPL) providers.
In fact, the only BNPL providers that can build your credit without the help of an app like Cushion are the following:
- Sezzle
- PayPal Credit
- Apple Pay Later (before Apple pulled the plug on it)
Frequently Asked Questions
How Do I Make Chase Pay in 4 Payments?
By default automatic payments will already be turned on and the amount due will be paid on each scheduled due date. But you can also manually make a payment from the Chase Pay in 4 dashboard.
Can I Cancel a Payment I made?
No, payments are made in real-time so they can’t be canceled.
What’s the Duration of Chase Pay in 4 Plan?
The four installments are paid every 2 weeks so it will take 8 weeks for the plan to be paid in full.
What Happens if I Miss a Payment?
A $5.00 late fee will be added to your current amount due and you won’t be able to set up any new Chase Pay in 4 plans until you make a payment.
Can I Change My Payment Schedule?
No, it isn’t possible to change your payment schedule once you have completed your initial plan setup.
Is a Credit Check Required for Chase Pay in 4?
There is no credit check required for Chase Pay in 4 since it’s a feature of your Chase checking account.
What’s the Total Available Amount for Chase Pay in 4?
Chase Pay in 4 has a static spending limit of $400.00 across all active plans.
Summary
Those eligible for Chase Pay in 4 should definitely make use of it if they can. It’s a feature integrated into the Chase dashboard so no sign-up is required. Unlike other pay-in-4 plans, you don’t have to pay 25% upfront.
While Chase Pay in 4 isn’t available at the point of sale, this could prove advantageous to those who struggle to control their spending. Since this makes it impossible for someone to purchase something that they don’t have the immediate funds for.
