We understand it can be a little confusing that your outstanding balance and your available spend don't add up to the spend limit on your Zip account.
The amount you have been approved for as your spend limit is different from the amount you are borrowing from Zip to complete your purchases. Since you pay the first 25% up front, we essentially lend you the remaining 75%. Your available spend is restored over the last 3 payments as the loan is repaid.
- If your spend limit was $100 and you made a purchase of $100, the amount borrowed from Zip would be $75
- The 2nd installment equals 25% of the order total, but 33.33% of the available credit, so there would be $33 available to spend
- The 3rd installment is 66.66% of the exposure, making the available spend $67
- The 4th installment will bring it back to 100%, so $100 would be available to spend again
Once you have paid all outstanding installments in full, you will see your Available Spend revert back to the full amount you've been approved for, plus an additional $50 for completing payments for this order on time.
We acknowledge that this is different from how some other Buy Now Pay Later companies communicate their customer spend limits and understand this can cause confusion for some customers. If you need further clarification please feel free to get in touch with our team during business hours via Live Chat or phone on +6494898144, or submit a support request at any time using our Account Enquiry form.