Implications of the new ‘buy now, pay later’ rule for small businesses providing the service

Small businesses are increasingly turning to “buy now, pay later” services as a way to attract customers and grow their businesses. These payment plans allow consumers to spread out their purchases over time, making them more affordable for many shoppers. However, this convenience comes with some risks for small businesses.

One potential problem with these payment plans is that if something goes wrong with a payment plan, consumers may blame the small business, even if they were not directly involved in the process. This can damage the reputation of the small business and potentially lead to lost sales.

In 2022, more than 13% of “buy now, pay later” transactions involved a disputed charge or a return, totaling $1.8 billion in transactions at five large BNPL firms. This highlights the importance of small businesses being aware of the risks associated with these payment plans and taking steps to mitigate them.

To help protect small businesses from these risks, the Consumer Financial Protection Bureau (CFPB) has implemented a new rule. Under this rule, “buy now, pay later” companies must offer consumers the same legal rights and protections as credit card lenders. This includes the ability to dispute charges, easily obtain refunds for returned items, and receive billing statements for transparency and accountability.

While there are risks associated with “buy now, pay later” services for small businesses, there are also benefits. These payment plans can help attract customers and increase sales. By being aware of the risks and taking steps to mitigate them

By Sophia Gonzalez

As a content writer at, I am dedicated to crafting engaging stories that captivate our readers. With a knack for turning complex topics into accessible and compelling narratives, I weave words together to inform and inspire. My passion lies in delivering accurate and thought-provoking content that keeps our audience informed and entertained. From breaking news stories to in-depth features, I strive to bring a fresh perspective to every piece I create. Join me on this journey of exploration and discovery through the power of words at

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