Legit Spend

Over 5,000 Make money Online Tips

What is Sezzle, and How Does it Work?

by

How does Sezzle work

As you all know, Sezzle is a publicly traded financial technology company that provides an alternative payment platform offering interest-free installment plans to shoppers online. To know how Sezzle work, you need open a Sezzle account.

The buy now and pay later option is taking over the E-Commerce world because they offer customers the flexibility to pay whenever they are ready, reduces the amount they actually have to pay at the time of purchase, and helps people budget for purchases.

However, as customers purchase directly from the company website, they will find it easy to spend more online because of the convenience. Companies can also benefit greatly from ease and convenience. This is similar to some credit cards, whereby you can make full payment when it’s due, so you don’t incur interest.

Sezzle is an excellent option for shopping at some of your favorite stores. Because the merchant is paid in full immediately by Sezzle. The merchant processes your purchase and fulfills your order like any other purchase.

If you want to know how Sezzle works, we will break down the methods of Sezzle payments and exactly what this service can do for you and your business.

How does Sezzle work?

Sezzle works as a buy now pay later(bnpl) option for customers to make their purchase now and worry about paying it off later with no interest. 

With Sezzle, your balance will be divided into four equal payments, with the first payment of 25% due at checkout and the remaining three due every two weeks until the loan is paid in full.

Basically, you can use Sezzle online or in-store by adding the Sezzle card to your virtual wallet. Sezzle can be used by merchants or customers

When you checkout online or at the counter in the store, you can use Sezzle as any other payment method, such as a debit card or credit card. You input the payment information, and Sezzle calculates your eligible repayment plan on the spot.

Also Read: 15 Best Companies Like Sezzle | Sezzle Alternatives 2022

For Merchants

Sezzle has formed as many commercial businesses as it can. This is because their profits come from their business with merchants, meaning they need to build trust with their merchants.

Sezzle can only be chosen at stores with approval from Sezzle, and merchants must integrate Sezzle into their checkout process. At this time, Sezzle is only available for online purchases and does not offer any in-store payment plans unless a customer purchases the Sezzle virtual card.

However, Sezzle is available for platforms like Woocommerce, Shopify, Wix, and Shopify plus; Sezzle is not available for Facebook, GoDaddy, or Weebly.

Sellers that are interested in working with Sezzle can make a merchant account. There are no setup fees involved in the process, but the transaction fees vary per business and are not standard.

For Customers

The customer must create their own Sezzle account. Once a user makes an account and signs in, they can select Sezzle as a payment method during the checkout process. Customers make payments directly to Sezzle. The first payment works as a 25% down payment. The following installments are also 25% of the total purchase, with two weeks in between each payment due date. While Sezzle does not charge interest, there may be late fees for missed repayments. Sezzle must be linked to the user’s debit or credit cards.

One bonus is that Sezzle pays upfront, so you can get what you ordered as if you paid with a debit or credit card. You also won’t have to pay processing fees or interest as long as you make all of your repayments to Sezzle on time.

Where You Can Use Sezzle

Sezzle is an online payment solution available for online boutiques and retailers. Target is its biggest retailer because it offers a flexible payment option.

Sezzle has a variety of stores to choose from. As a consumer, you can support small businesses through the Sezzle merchant network, choose Sezzle at checkout, and spread your payments over 6 weeks.

Although, the consumer isn’t just limited to online retailers with the Sezzle Virtual Card. Sezzle Virtual Card allows you to connect it to your Apple Pay and Google pay and make Sezzle purchases at any box store where those payment options are accepted.

You can still use Sezzle and earn cash-back rebates if you belong to shopping rewards apps like MyPoints or Swagbucks. The platform is still growing, and new merchants are encouraged to work with them.

How to get Approved for Sezzle

To be eligible for Sezzle, you must be at least 18 years old, have a U.S. or Canadian phone number that receives texts, be able to verify your email address, and provide a payment method, either by a debit or credit card.

However, the company approval decisions are instantaneous, and you’ll receive an initial spending limit based on what Sezzle thinks you can safely pay back. Most first-time purchases are anywhere from $50-$200. If you make all payments on time, your credit limit should increase the more you successfully use Sezzle.

Pros and Cons of Sezzle

Knowing the buy now, pay later(bnpl) option can be a great way to offer more flexibility to your customers. These are the Pros and Cons of using a Sezzle.

Pros
  • They have fast access to financing at point-of-sales, with a growing number of stores that accepts Sezzle.
  • When signing up for an account, Sezzle does not do a hard credit check, only a soft credit check, which does not effect your credit score.
  • They do not report to credit bureaus, unless you opt in to Sezzle up.
  • The payment plan is simple and transparent and you can keep track on it through the Sezzle app.
  • With every purchase you’re allowed reschedule future payments once.
  • One free reschedule per order for late payment, which is customer friendly.
Cons
  • Your first payment act as a down payment, 25% due at a date of purchase.
  • No rewards program, although you can fund your account with credit card that does not earn point.
  • If you have to return an order to a merchant, you’re responsible for contacting the merchant for a refund.
  • Sezzle does have a tricky return policy. If you need to return an item to a merchant that you used Sezzle with or exchange for a different item the process must be handled by you.
  • Repaying your loan ontime doesn’t build a credit score, unless you opt in to Settle Up.

How to use Sezzle, and how Does it work?

Sezzle is an online credit service, but you can use it to pay for things online or in-store.

Online method to use Sezzle

  • Download the app
  • Sign up or log in to Sezzle with the bank account you would like to use
  • Once you are in your cart
  • Select Sezzle as your payment option
  • Input your Sezzle payment information
  • Make your first payment (Sezzle will schedule the following installments)

In-Store method to use Sezzle

You can make purchases in-store by adding your Sezzle Virtual Card to Google Pay or Apple Pay. To add your virtual card to one of these apps:

  • Log in to Sezzle through the Sezzle app
  • Go to the Sezzle Card tab
  • Select use your Sezzle virtual card
  • Copy payment information (Card number and CVV)
  • Open Google pay or Apple pay
  • Go to add to the wallet and add your Sezzle card details
  • Scan the QR code at any participating store and select your Virtual Card to pay.

How to become a Sezzle Shopper

To become a Sezzle shopper, you must be:

  • You must be 18 years and above
  • You must have a valid U.S or Canadian mobile number
  • You must have a verified E-mail address
  • You must have an active U.S bank account
  • Have a non-prepaid payment method available (Debit card or Credit card)

How to use Sezzle for Business

Before you can have Sezzle as a payment option for your shoppers, you must first receive approval from Sezzle. During the application process, Sezzle will ask you for basic information about you and your business. And you need to be prepared, this is the basic questions:

  • How long have you owned the business
  • Give an estimate of your gross annual sales
  • Your social security number and your TIN for the business
  • Other business documents

This will take 3 business days for Sezzle to notify you if you are approved or not, and they will inform you what your transaction rate will be. These rates depend on your business credit score, annual sales, and how long you have been in business.

Whenever you have been approved, and your shopper makes a purchase, it will take 5-7 working days to see the funds in your bank account.

Alternatives to Sezzle

There are other apps that are similar to Sezzle, and they offer the same service as Sezzle:

1. Klarna

Klarna is an E-Commerce company that offers 4 interest-free payments on one purchase. You can take your purchase on credit, with four equal payments every two weeks.

They do a soft credit check to protect your score and split payment by 2 weeks. They work with almost all the major retailers like Shein, H&M, and Macy’s.

2. Afterpay

Afterpay is a point-of-sales loan facility offering loans on small purchases; they have the same features as Sezzle. Afterpay splits the repayment into four installments, and it’s payable at intervals of two weeks.

There is no interest and no fees for on-time payments; they also work with the same major retailers like Klarna and have a separate page for small companies. 

3. Quadpay

Quadpay also offers you interest-free point-of-sale loans, repayable in four installments, with your first one due on the date of purchase.

4. Affirm

Affirm is also an app that is similar to Sezzle. It’s a market leader in point-of-sale loans. You get options for credit lines up to $17,500, with up to 12 months to repay your loan.

Afterpay and Klarna have the same features as Sezzle, more brands, and can be used in-store and online. Sezzle can’t offer more, but there’s freedom in their smaller size. Shoppers that want to try buying from smaller businesses will find Sezzle has far more options than either platform. 

Conclusion

How does Sezzle work? Sezzle is an excellent company that operates as an alternative payment solution for customers wanting to finance big purchases without seeing any interest fees.

Sezzle has the flexibility to buy now and pay later, which is helpful if you need more manageable size payments. Since Sezzle does not run a hard credit check and only a soft credit check, it is a perfect option for those who would like to keep the integrity of their credit score.

Also, for a small eCommerce business, Sezzle is a great solution you can add to your list of payment options. Also, a bank account cannot be used to create a Sezzle account or to place an order.

FAQ

How does Sezzle make money, and how does it work?

Sezzle makes money by charging the retailer a commission on your transaction, also, it doesn’t charge you any interest on your outstanding balance, and there are no other fees involved unless you miss or reschedule a payment.

Is Sezzle safe to use?

Yes! Sezzle is safe because they keep customers’ personal information and transactions secure.

Who accepts Sezzle as a means of payment?

Target accepts Sezzle as a means of payment. However, you can add your virtual card to your Google Pay or Apple Pay accounts and use it to make purchases at any box store where payment options are accepted.

At what age can I be eligible to use Sezzle?

Before you can be able to use Sezzle, you need to be 18 years and above, and you must have a valid U.S or Canadian mobile number.

Are there credit checks?

No! There is no credit check, there is no need for you to be worried about credit checks; Sezzle doesn’t qualify as a credit product per United States regulations.

Reference

Does this article meet your immediate needs? If yes, please kindly share it with your friends. Also, do well to share your opinion in the comment section below.

Writer’s Recommendation