Sezzle Review: How It Works, Fees and Is It Worth It?

Sezzle is a buy now, pay later (BNPL) company that allows users to pay in full or split purchases into two or four installments. Sezzle doesn’t conduct hard credit inquiries or charge interest. Some shoppers use BNPL services like Sezzle instead of traditional borrowing options, such as personal loans for smaller purchases. However, if you choose to use Sezzle, there are several fees associated with the service. 

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Quick Take

• Sezzle is a BNPL service that will report positive payment history to all three credit bureaus for shoppers enrolled in Sezzle Up.

• Payment plans don't charge interest.

• There are fees for late payments, failed payments, service and rescheduling fees.  

What Is Sezzle?

Sezzle, according to its media press kit, is a “purpose-driven digital payments company” founded in 2017. The company has more than 529,000 subscribers, over 13 million sign-ups and over $8.1 billion underlying merchant sales. As a BNPL provider, Sezzle offers installment plans that allow users to pay in full or split purchases into two or four payments.

How Sezzle Works

Here's a full breakdown of Sezzle's key features.

Payment Structure

Sezzle offers three different payment options:

• Sezzle Pay in 4: You can split purchases into four installments paid every two weeks. This option is available for online and in-store purchases starting at $20. The first installment is due at checkout.

• Sezzle Pay in 2: This option allows you to pay in two installments due two weeks apart. It’s available for online and in-person purchases starting at $10. The first installment is also due at checkout.

• Sezzle monthly payments: This option is available for online purchases up to $1,500 per transaction and $5,000 per month. Interest applies, and rates may vary depending on the purchase.

Purchase Limits

Purchase limits vary, depending on payment history. New users typically have lower limits.

Funding and Approval Speed

Sezzle provides instant funding.

Credit Check

There’s no hard credit check with Sezzle.

Sezzle Costs and Fees

• Sezzle subscription cost: You can avoid some fees by signing up for a subscription. The Premium subscription costs $13.99 per month and the Anywhere subscription costs $19.99 per month.

• Late payment fee: If you fail to pay on time, a fee of up to $16.95 may be charged.

• Failed payment fee: If your payment is declined because you don’t have sufficient funds in your bank account, you’ll face a fee of up to $6.95. This fee will not be more than 25% of the initial purchase amount.

• Service fee: You can be charged up to $7.49 if a single-use virtual card is issued.

• Payment rescheduling fee: You can reschedule one payment for free. Subsequent repayments will cost up to $7.50.

• Account reactivation fee: If your account is paused, then it will cost up to $5 to reactivate it.

• Late saver fee: You may be charged a fee if you use your credit or debit card for repayment instead of a banking account. The fee is up to $1.99.

• Monthly payments: If you elect monthly payments, then an annual percentage rate (APR) will be charged.

Pros and Cons of Sezzle

Like most BNPL services, Sezzle comes with advantages as well as trade-offs.

How To Sign Up and Use Sezzle

Getting started with Sezzle is simple. You can follow these steps:

1. Download the Sezzle app on your phone.

2. Create your account by entering your legal name, phone number and email address. You must be at least 18 years old and a resident of the U.S. or Canada.

3. You’ll be asked to verify your identity for a soft credit check. You will likely be asked to provide the last four digits of your Social Security number.

4. Link a payment method, such as a bank account, credit card or debit card.

5. Access your spending power. On the app, you can see how much you will be able to spend.

Using Sezzle Online

If you’re using Sezzle with a partner retailer online, you can follow these steps:

1. Select Sezzle as your payment method at checkout.

2. You’ll be redirected to the Sezzle portal to complete the transaction.

Using Sezzle In-Store

If you’re shopping in person, you can make purchases through the Sezzle app.

1. Tap “Purchase Request” and enter the amount you plan to spend.

2. Sezzle will generate a 16-digit virtual card number that you can enter in the retailer’s credit card field to complete your purchase.

Sezzle vs. Other BNPL Apps

Here’s how Sezzle compares with other BNPL apps offering similar installment payment features.

Afterpay

Like Sezzle, Afterpay may perform a credit inquiry when you apply. However, unlike Sezzle, Afterpay doesn’t report on-time payments to the credit bureaus. Afterpay also generally has fewer late fees than Sezzle.

Zip

Zip can be used at most places, while Sezzle typically requires a subscription to use its virtual card anywhere. Zip does not report payment history to the credit bureaus, whereas Sezzle does. Zip also has some flexibility around payment rescheduling if you need additional time.

Who Sezzle Is Best For

• People who want to build credit

• Those denied traditional credit cards

• Students and younger shoppers

• Shoppers who don’t want a hard credit check

Final Take

Sezzle is a BNPL service that may be a good for for shoppers who want the option to build credit. While the platform charges certain fees and may require a subscription, Sezzle Up users will have their positive payment history reported to the credit bureaus. For users who make their payments on time, Sezzle can be a useful way to spread out purchases while strengthening their credit profile. 

Sezzle FAQs

Here are answers to some of the most common questions about Sezzle and how its BNPL service works.

Is Sezzle legitimate?

Yes, Sezzle is a legitimate company that provides BNPL services.

Does Sezzle check your credit?

Sezzle may do a soft credit check, but this does not impact your report or score.

Does Sezzle charge interest?

Sezzle doesn’t charge interest for its installment plans. It may, however, charge late fees.

What happens if you miss a payment?

Missing a payment will cause late fees and could potentially result in pausing your account.

How much can you spend with Sezzle?

Your spending limits vary based on your account history.

Can Sezzle send you to collections?

If you have several late fees, your account could be sent to collections.

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