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Zip (Formerly Quadpay) Reviews: What to Know About This BNPL Program

Zip (formerly Quadpay) offers no interest and very few fees, but is it a good financing option for you?

Justin Cupler

Contributing Writer at Tally

October 18, 2022

When financing a purchase, there’s no shortage of options. A recent addition to the financing world is buy now pay later (BNPL). BNPL providers generally offer 0% interest and little to no fees. One example of a BNPL provider is Zip (formerly Quadpay).

With the relative novelty of BNPL services, you’re likely looking for customer reviews of Zip. You can stop searching because we have all the information you need on Zip below.

Zip (formerly Quadpay) reviews

Online, Zip reviews are mostly positive and paint a relatively good picture of the company as a whole. Let’s look at some positive and negative reviews and what stands out. 

Positive Zip reviews

You’ll find many positive reviews about Zip online, with comments ranging from how easy it is to use to how users got approved after being denied other financing options. Some of the highlights of these positive reviews include: 

  • I don’t get approved for affirm through Amazon so I use Zip instead. It has been the best experience for me and I truly love it.”

  • “...over all, easy to use. Easily understandable as it tells you how to use it. Very convenient.”

  • They accepted me when other services like this wouldn't, which I appreciate. Quick and easy to use for all my shopping needs!!”

  • “I love that I have the opportunity to pay in 4 installments. This helps me be able to purchase supplies I need for my small business without having to pay too much up front.”

  • First time using Zip and I was quite impressed how quick and seamless the process was to shop with Zip online. Very easy to understand, navigate and convenient.”


Negative Zip reviews

But it’s not all positive for this BNPL app. Review sites also have a small number of negative feedback to consider before using the app. This negative feedback includes issues like double payments, dramatically reduced credit limits and more. 

Let’s review some of the negative Zip reviews: 

  • The Amazon order didn’t go through with Zip’s virtual card, forcing me to pay full price WHICH IS FINE. The problem comes when it charged the first payment, and fully intends on charging the next three when the virtual card didn’t even go through.”

  • “I made 5 large purchases over the past year for $300-$400 each. All were paid off in time with no late payments. Now I logged in to use the app for a purchase, it shows my credit limit as $50.”

  • Customer service is trash. You can't get them on the phone. Their agents do not know how to resolve issues and give you the runaround. Thinking of closing my account.”

  • This is the absolute worst company, I ordered an item via Etsy using Zip pay in four app, the Etsy seller sent me [the] wrong item and refused to accept a return so I contacted my credit card, however Zip has no buyer protection or dispute department?”

  • My purchase was canceled and I’m still being billed. Tried to resolve it via phone and still can’t get it taken care of. “

What is Zip (formerly Quadpay)?

Zip is a buy now pay later (BNPL) service that allows users to purchase items and make interest-free installments over a short period.

How does Zip work?

Like many other BNPL providers, Zip is a point-of-sale financing offer you’ll find on the checkout page at participating retailers. However, it also offers the ability to shop at select retailers using the Zip app or even in stores and at non-participating online retailers using a virtual credit card.

Qualifying for a Zip account

Qualifying for a Zip account is relatively simple and has only the most basic requirements. The eligibility requirements are as follows: 

  • You live in the U.S.

  • You are at least 18 years old

  • You have a valid mobile phone number

  • You have a valid debit card to make purchases with

  • You have a valid U.S. mailing address

Using Zip at checkout

At select retailers, Zip is integrated into the checkout process. You’ll see a “Checkout with Zip” button on the retailers' checkout screen. Click on the “Checkout with Zip” button and follow the prompts to apply for an account and get approved for financing. You’ll get your available credit limit, which you can see on your Zip dashboard.

You’ll then return to the checkout screen, where you’ll make a 25% down payment with a debit card or credit card. You’ll also see the rest of your payment plan, which will be 25% every two weeks for six weeks.

Using the Zip app

You can also shop via the Zip app. Simply download the app and apply for an account to get your available spending limit. You can then search for the retailer where you want to shop and place the items you’d like in your cart. 

After you finish shopping, click the “Pay with Zip” button on the bottom of your screen, confirm your payment schedule, which again starts with a 25% first payment and continues with three biweekly 25% payments.

Make the 25% down payment with a debit card or credit card, then review your remaining payment terms, and the Zip app will use a virtual one-time credit card as the payment method.

Using Zip in store

If you want to shop in person, you can still use Zip as a payment option as long as the store accepts Visa. In the Zip app, click on the “In-Store” tab, then enter the amount you wish to spend and click “Continue.”

The Zip app will show you the payment plan, which is the same 25% down payment and three additional 25% payments over six weeks. Zip then issues you a virtual card with a spending limit that matches what you plan to spend. You can place this card in your Google Pay or Apple Wallet and use your phone’s tap-to-pay option.

The first 25% of the total purchase amount will go on your preferred debit card or credit card, and the remainder will be charged to your Zip account.

Does Zip charge fees?

Like many BNPL providers, Zip touts its interest-free model, but unlike other providers, Zip has a few fees.

Zip charges a $1 buy-now-pay-later platform fee per installment payment, so you’ll pay $4 in fees per transaction. Zip also has a late fee of up to $7, but you can request to have Zip waive the fee. Zip will review your request and waive it if you meet the requirements.

Outside of the $4 fee per purchase, Zip doesn’t charge other financing fees, such as interest.

Does Zip hurt your credit score?

Zip will perform a soft credit check to verify your information and identity, but it doesn’t review your credit score or credit history. Only a hard credit check would impact your credit score, and Zip doesn’t perform these.

While Zip doesn’t hurt your credit score initially or when you make a purchase with your account, it’s not totally harmless. If you default on repayment, Zip does reserve the right to place your account in collections and report late payments, missed payment dates and other negative information to the credit bureaus. This can have a negative impact on your credit score.

Can Zip help you build credit?

Zip cannot help you build your FICO credit score because it doesn’t report on-time payments to the three major credit bureaus. This skews the risk versus reward of a Zip account heavily toward the risk side. 

Is Zip a good financing option?

You can choose from a wide range of financial products to make a purchase, including credit cards, personal loans, lines of credit and the relative newcomer, BNPL financing. BNPL financing is intriguing and seems like a great offer with its 0% interest rate. However, like Zip’s competitors — Klarna, Afterpay, Sezzle, Affirm, etc. — it has a dark side too.

First, this type of short-term leveraging of future income can be dangerous because you never know when an emergency will strike, and committing six weeks of future income to this payment plan could further stretch your budget. Yes, it’s interest-free, but you’re still making payments.

If you miss a payment due to an emergency, you could incur a late fee and receive a negative mark on your credit report.

And because BNPL financing is geared toward those with bad credit and limited income, some classify it as predatory lending. It also feeds into the instant gratification side of impulse spending, which is bad for building solid personal finance skills.

What’s a better alternative than Zip?

Financing any purchase you could easily pay with cash typically isn’t a good idea. The only exception is using a credit card to reap the rewards and then paying the balance in full by the due date to avoid all interest charges.

Instead of using Zip or any other BNPL service, divide the amount you need to purchase the item into four equal amounts, then put that much in a savings account biweekly. For example, if you want a $1,000 television, put $250 in a separate bank account every two weeks for six weeks.

This will give you the money you need to pay cash for the item. Plus, this allows you to delay gratification and gives you time to shop around and think about whether you really want the item. If you change your mind by the end of the six weeks, you can use the $1,000 for something else or roll it into your emergency fund.

Skip Zip and stick to cash

Zip and all other BNPL providers sound like great deals on the surface but can get you into financial trouble, much like payday loan companies. Instead of opting for Zip, save the cash you need over the same six-week period, giving yourself time to shop around and think about your purchase instead of making it on impulse.

Want to free up cash by paying off credit card debt? The Tally† credit card debt repayment app can help. The app helps manage your credit card payments, and Tally offers a lower-interest personal line of credit, allowing you to efficiently pay off higher-interest credit cards. 

To get the benefits of a Tally line of credit, you must qualify for and accept a Tally line of credit. The APR (which is the same as your interest rate) will be between 7.90% and 29.99% per year and will be based on your credit history. The APR will vary with the market based on the Prime Rate. Annual fees range from $0 to $300.