PayPal installment does not work: how to fix these 14 blockers directly

The PayPal installment payment does not work and it is unclear why? There are several reasons why the PayPal installment payment may not work. In this article, I will tell you the 14 most common blockers of a PayPal installment payment and show you solutions, how it often works with the PayPal installment payment.

Common reasons why PayPal installment payments do not work are further up in the list listed. If the PayPal installment payment does not work for you, it is best to work your way through this article from the beginning and narrow down the cause further and further. Often, the problem of the PayPal installment payment not working (despite good Schufa) can be solved by the solutions described and you can then easily buy in installments with PayPal.

1. the PayPal installment payment does not work because the deposited account is too weak

The most common cause of the "PayPal installment payment does not work" dilemma is the inadequacy of the payment sources on file, such as bank accounts and credit cards.

Problem and cause

PayPal sets high requirements for the payment sources to ensure that the installment payment can be processed without any problems. These requirements are derived from the risk of a possible payment default.

By querying the Schufa and other files, PayPal has some basic information about the reliability of the account you have added.

The decisive question of the PayPal algorithm are the accounts and credit cards on file reliable enough? The algorithm often certifies insufficient reliability if only one source of payment stored is. In this case, PayPal often has too little trust in the deposited payment source. The PayPal algorithm estimates the risk of non-payment as too high and PayPal then rejects the installment payment.

That is annoying. However, PayPal must ensure in advance that the installment payment will be reliably repaid.

Solution

If you want to fix the problem "PayPal installment payment does not work", you should add another payment source to your PayPal account.

As soon as PayPal has access to another account to debit the installments, the risk of PayPal receiving the money decreases statistically.

There are a variety of free current accountsthat you can use for this. The Account from Bunq* is particularly recommended. You can open it directly online and add the IBAN to your PayPal account. Very often the problem "PayPal installment payment does not work" is then solved.

Related article: This guide will help you with problems with KlarnaKlarna installment purchase does not work.

1. too many purchase attempts in a short period of time can lead to the installment purchase option no longer being offered

Problem and cause

If you have placed a large number of orders in a short period of time via the installment purchase, your "Shopping Power" is exhausted. This is your maximum credit limit to order goods via PayPal installment purchase.

Solution 1

Place an order for a lower amount: If too many unsuccessful purchase attempts have been made, reducing the total amount in the shopping cart can help to make the installment purchase option available again.

Solution 2

Settle open PayPal invoices: If you have outstanding invoices in your PayPal account, you should settle them before attempting to place another order. Outstanding invoices could be considered a financial risk and could hinder the approval of the PayPal installment purchase.

3. PayPal installment payment does not work due to inconsistent information

Problem and cause

With many stores you have your own user account in which your data is stored. A different spelling of your name or address in this account to the PayPal account can lead to the PayPal installment payment no longer working.

Different data could be interpreted as fraud and the installment purchase is then rejected for reasons of fraud prevention.

The problem cannot occur with PayPal 1-Click payment, as PayPal then does not request any data from the store and compares it with its own data.

Solution

Logical - Use consistent personal data! When ordering, make sure that you only enter your own personal data in the same spelling as it is stored with PayPal.

4. the PayPal installment payment does not go due to negative entries in a credit agency

Problem and cause

PayPal first checks your creditworthiness using one of the common credit agencies such as Schufa, Arvato and Bürgel. However, PayPal's own data is also included in the check if you already have an account there. If negative entries are found in a credit agency or at PayPal itself, PayPal will reject the installment payment. You will then receive a short and concise email saying: "The PayPal installment payment is not possible".

Related post: What does a negative Schufa information look like? - 4 features + example

Solution 1

Get one free Schufa information and check whether there are any negative entries. If these are unjustified, you can file an objection. With a paid subscription, the objection can be made digitally. With the free Schufa data copy, you have to write a letter to Schufa.

Solution 2

Another alternative is to check with the help of this article where you can buy in installments despite a negative Schufa can. It may often be difficult to buy in installments with a negative Schufa entry, but you may still have the best chances with stores with in-house financing (e.g. Otto.de or Baur.de).

Solution 3

Mini loans from can also be a solution Installment purchase despite negative Schufa to conclude. This is because the requirements for mini loans are low and they are also offered if the PayPal installment payment is not possible due to negative entries. The provider cashper* has the most favorable conditions for mini loans. Alternatives are the usually somewhat more expensive providers Vexcash* or ferratum*.

5. the PayPal installment payment does not work because it is not offered

If you don't look closely, you might assume that every seller offers PayPal installment payments. However, this is not the case, as only certain stores and platforms offer PayPal installment payments. PayPal installment payment is not offered in the following cases

• at digital goods a PayPal installment payment is generally not possible
• If the Value of goods not between at least €99 and a maximum of €5,000 PayPal installment payments are also not possible.
• at eBay sellers it is not possible to make a general statement, as each merchant can decide for themselves whether to offer PayPal installment payments.

5.1 PayPal installment payment does not work for digital goods

Problem and cause

PayPal installment payments are also not possible for digital goods. PayPal is currently not prepared to assume the default risk for the installment purchase of digital goods [source: E-Commerce Magazine].  

An exception to this are some digital products which are purchased via Digistore24. Although these products are virtual, payment in installments via PayPal is sometimes still possible.

This is due to a different process in the background. Whereas with normal PayPal installment purchases, PayPal assumes the claim and thus the default risk, with Digistore24 it is possible for the merchant to assume this risk.

Therefore, payment by installments for digital goods is still possible at some Digistore24 stores.

Solution

To buy digital goods in installments, you can take out a mini loan. These are small loans of between a minimum of 50 euros and a maximum of 3,000 euros. The requirements for mini loans are low and they are also offered if PayPal installment payments are not possible. The provider cashper* has the most favorable conditions for mini loans. Alternatives are the usually somewhat more expensive providers Vexcash* or ferratum*.

5.2 PayPal installment payment does not work for goods worth less than €99 and over €5,000

Problem and cause

PayPal installment purchase is only available for shopping carts with a value between 99 and 5,000 euros. For cheaper or more expensive shopping baskets, you will not be offered PayPal installment purchase at checkout.

Solution

To buy goods under 99 euros in installments, you can take out a mini loan with ferratum* can be taken out. This is the only small loan that is granted for as little as 50 euros. The requirements for the mini loan are low. Alternatives are the providers Vexcash* or cashper*, which offer small loans from 100 euros. From these amounts, however, you can also fall back on PayPal installment payments, which usually offer better conditions.

5.3 PayPal installment payment does not work on eBay

Problem and cause

Payment by installments via PayPal is not available as standard for all eBay sellers, as eBay is not the actual merchant but acts as an intermediary. It is therefore up to each individual seller to decide whether to offer payment by installments.

Not all eBay sellers activate the installment payment option. A seller can, for example, only offer PayPal installment payments for more expensive electronics or luxury items and not activate other product categories for PayPal installment payments.

As payment by installments is not a standard option, some sellers indicate in the item description that they offer this option. This is often done by using terms such as "financing" or "installment purchase" in the item name. You can then find such items using the eBay search function by searching for "item name financing" or "item name installment purchase". You will also find alternative installment payments that are not processed via PayPal.

Solution

If the PayPal installment payment for your item does not work, you can take out a mini loan from cashper* or Vexcash* and ferratum* alternatively take out a loan. The provider Cashper has the more favorable conditions. The other providers are often slightly more expensive, although this always depends on the term and the extras booked. Through same-day payout you receive the Money in your account immediately with all providers.

6. PayPal installment payment does not work because the order is not placed with the PayPal e-mail address

Problem and cause

If you do not place the order in the store with your e-mail address stored with PayPal, the installment purchase may be rejected by PayPal, as PayPal cannot assign the e-mail address to the user account.

Some users also report a rejection due to an alternative e-mail address in the PayPal forum. For these users, the PayPal installment payment did not work because the email address in the store did not match the PayPal email address.

Solution

When the order was placed again with the e-mail address stored with PayPal, the PayPal installment purchase worked.

"I also had the problem that the installment payment with Alternate refused. However, unlike you, I used my Pay-Pal email and it worked. Strange this system."

The problem "PayPal installment payment does not work" was solved by using identical e-mail addresses for this user

• "Thank you! It helped me with alternative address....hat worked directly"

Again, it was due to the e-mail address

"I have just ordered an iMac from comtech. It worked for me after the third attempt. The first time I used my personal e-mail, the second with my father's account and the third and successful was with the e-mail registered with PayPal. I've always had problems with financing because I'm doing an apprenticeship and only receive BAföG"

Here too

"After several attempts to order from Alternate with installment payment, I have now found a solution on my part. When requesting an installment payment using my email address registered with PayPal, the request for 100% was rejected. Only after I entered a 2nd alternative email address from my email account was the request approved."

A different e-mail address was also the cause of a PayPal installment payment not working for this user

7. use another browser

Problem and cause

Sometimes it can also be due to the browser's data protection settings that the request is rejected.

Solution

Therefore, try using a different browser. Recommended are Chrome, Firefox or Edge.

Also important: temporarily leave all Cookies and trackers from PayPal to.

"Use a different browser for installment purchases".

PayPal Hotline on request why the PayPal installment payment does not work despite good credit rating

8. switch off the antivirus program

Problem and cause

If the PayPal installment payment does not work, it could also be due to a setting in your antivirus program.

Solution

Therefore, turn off the antivirus program temporarily and add the desired product to the shopping cart again. If the PayPal installment payment is now displayed when you check out, the problem was with the antivirus program.

" Deactivate your antivirus protection program".

PayPal Hotline on request why the PayPal installment payment does not work despite good credit rating

9. switch from Wi-Fi to mobile data or vice versa

Problem and cause

If you have not yet been able to resolve the problem of the PayPal installment purchase not working, it could be because your internet connection has been classified as unreliable. This problem occurs with large Wi-Fi networks where many people access the Internet at the same time.

Solution

In this case, switch to mobile data or restart your router. There have also been cases in the PayPal forum where the PayPal installment purchase did not work via the mobile network, but suddenly worked via the W-Lan network.

It is therefore also worthwhile using mobile data if you connect to a Wi-Fi network and then try to complete the PayPal installment purchase again.  

10. restart your router

Problem and cause

If your router has selected a preloaded IP address, the PayPal installment purchase may be rejected.

Solution

Therefore, restart the router to get a new IP address. Sometimes the problem "PayPal installment purchase does not work" can also be solved with this trick.

11. PayPal installment purchase does not work with business accounts

Problem and cause

PayPal installment payment is reserved for PayPal private customers. If you have a business account (merchant account), you cannot use it to buy in installments. A user reports the problem:

"I have a PayPal business account, now I want to buy something for my business and pay for it via PayPal with installments. Unfortunately, I can't find anything where I have to go to PayPal. When my PayPal account was still a normal account, I was asked if I wanted to pay in installments when I made a purchase via PayPal and it was no problem. Now that my PayPal account is a business account, I can no longer find this option."

PayPal installment payment does not work because this user has a business account

Solution

PayPal then clarified that, according to the guidelines, PayPal installment purchases are only possible for private accounts. This means that PayPal installment payments do not work for business accounts and you have to switch to alternative financing options.

As a self-employed person, you could take out a mini loan to finance your purchases. These are small loans of between a minimum of 50 euros and a maximum of 3,000 euros. The requirements for mini loans are low and they are also offered to the self-employed and freelancers, who often find it difficult to obtain a conventional bank loan. The provider cashper* has the most favorable conditions for mini loans. Alternatives are the usually somewhat more expensive providers Vexcash* or ferratum*.

12th PayPal installment payment does not work at Alternate

Problem and cause

In recent days, there have been increasing reports in online forums about problems in connection with PayPal installment payments. Some online retailers, including the renowned provider "Alternate" (alternate.de), and other stores are affected by these difficulties. Some sellers on eBay and other stores may also be rejected.

Customers who shop on Alternate's website and select the installment payment option face an unexpected obstacle. After selecting the number of installments, for example 12 months, many of them receive an unwanted notification telling them that their PayPal installment request has been declined.

Users report that they receive an email after the rejection in which PayPal informs them that the installment payment is not possible because the check has shown that the customer is not in a position to make the installment payment.

Solution

There are various reasons why the PayPal installment payment might not work at Alternate. These reasons may be of a technical nature, relate to the customer's credit rating, be due to information from Schufa or depend on the specific settings of the respective online store.

To get to the bottom of the problem, you can use this guide and work through the previously mentioned causes in sequence.

13th Fanatec: PayPal installment payment does not work

Problem and cause

Fanatec no longer offers installment payments via PayPal since March 2022.

Recently, customers also had problems with the PayPal installment payment at the Fanatec simulator store despite a good Schufa. The PayPal installment payment was no longer offered after logging into the PayPal account.

PayPal is free to decide whether or not the installment payment option for Fanatec is available for certain products. Fanatec is aware of the problem and the store has tried hard to solve the problem in 2022. As this has not been successful so far, Fanatec has PayPal installment payment option taken completely offline since March 2022 to put pressure on PayPal. Since then, Fanatec's terms of payment have stated that delivery can only be made against prepayment.

Payment is due immediately after the binding order. We deliver exclusively against prepayment.

Fanatec terms of payment

Solution

Since Fanatec has abolished the PayPal installment payment, you have to fall back on alternatives to still be able to buy in installments. These include:

• mini loans from cashper* or Vexcash* and ferratum*. The provider Cashper has the more favorable conditions. The other providers are often slightly more expensive, although this always depends on the term and the extras booked. Through same-day payout you receive the Money in your account immediately with all providers.
• Payment in installments by credit card: Certain credit cards offer offer an installment payment option (installment facility). With these cards, you can activate the installment payment option in the respective app. All providers check your creditworthiness when you apply for the card. You can also see how high the credit limit is in the app. We recommend cards that offer free deferred payment. These include the credit card from TF bank* and from Advanzia*. But the Klarna Card is also worth a look.

14. contact PayPal customer service or store if the PayPal installment payment still does not work

If you were unable to resolve the problem with the PayPal installment payment, you should contact PayPal or the respective online merchant directly. You can reach PayPal customer service on 0800/7234500.

Conclusion: PayPal installment payment does not work

One solution that has proven effective in many cases is to link an additional bank account or credit card to your PayPal account. This serves to strengthen your PayPal account for the installment purchase and it allows the PayPal security mechanism to approve the purchase in installments. For this procedure, it is helpful to open an online Girokonto with a provider that allows you to open an account quickly and easily.

I recommend the account of bunq*, which you can open online in just a few minutes. After opening the account, you add the account to your PayPal Wallet.

In summary, there can be many different causes for the problem "PayPal installment payment not working". However, in most cases there are solutions to these problems. It is therefore worth systematically working through the solutions shown and not giving up until the PayPal installment payment works in the end.

If you are not successful with this, you still have the option to pay for your purchase in the store using a credit card with installment facility (recommended: TF Bank*, Advanzia*, alternative: Klarna Card) or via a mini credit (recommendation: cashper*Alternatives: Vexcash*, ferratum*) to be financed. In both cases a Installment payment despite negative Schufa still possible in many cases.

Here again is an overview of the solutions with a non-triggered or simply non-functioning PayPal installment payment. The links will take you directly to the respective chapter:

• 1. the PayPal installment payment does not work because the deposited account is too weak
• 1. too many purchase attempts in a short period of time can lead to the installment purchase option no longer being offered
• 3. PayPal installment payment does not work due to inconsistent information
• 4. the PayPal installment payment does not go due to negative entries in a credit agency
• 5. the PayPal installment payment does not work because it is not offered
• 6. PayPal installment payment does not work because the order is not placed with the PayPal e-mail address
• 7. use another browser
• 8. switch off the antivirus program
• 9. switch from Wi-Fi to mobile data or vice versa
• 10. restart your router
• 11. PayPal installment purchase does not work with business accounts
• 12th PayPal installment payment does not work at Alternate
• 13th Fanatec: PayPal installment payment does not work
• 14. contact PayPal customer service or store if the PayPal installment payment still does not work

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Disclaimer: This is well researched but non-binding information.

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