Paze is Bank of America's buy now, pay later service
Paze is a payment option that lets you split a purchase into smaller payments over time instead of paying the full amount upfront. Bank of America offers it through their debit and credit cards, and you can use it at participating retailers both online and in stores. The payments are spread across a set number of weeks, and you see the schedule before you confirm the purchase.
Unlike a traditional loan or credit card, Paze is tied directly to your Bank of America account. The payments come out on the dates you agree to, and there are no interest charges if you pay on time. If you miss a payment, late fees and interest can apply, so the timing matters.
Key Takeaways
- Paze splits a purchase into equal payments over a fixed period, with no interest if you pay on schedule.
- You can use Paze at checkout with a Bank of America debit or credit card at stores and websites that support it.
- Late payments trigger fees and interest charges, so you need to have the funds available on each payment date.
- Paze transactions appear on your Bank of America statement and count toward your account activity.
- You can see your Paze payment schedule in your Bank of America app or online banking portal.
How to use Paze at checkout
When you're ready to pay for something at a retailer that supports Paze, look for the option at checkout. You'll see it listed alongside your other payment methods. Select Paze, choose your Bank of America card, and the system will show you how many payments you'll make and when each one is due.
Review the payment schedule carefully before you confirm. Once you accept, the first payment may come out immediately or on the date shown, depending on the retailer. The remaining payments will follow on the dates listed. You don't need to do anything else — the payments happen automatically from your Bank of America account.
Payment schedules and timing
Paze typically breaks purchases into 2, 4, or 6 equal payments, though the exact options depend on the retailer and the purchase amount. A $100 purchase split into 4 payments means you pay $25 on each of four dates. The first payment date is usually within a few days of purchase, and the rest follow at regular intervals — often weekly or biweekly.
You can see the exact dates in your Bank of America app or online banking. Set a reminder for each payment date so you don't accidentally overdraw your account. If the payment can't go through because you don't have enough funds, Bank of America will charge a late fee and interest will start to accrue on the unpaid balance.
What happens if you miss a payment
If a scheduled Paze payment fails because of insufficient funds or a closed account, Bank of America will charge a late fee. The amount varies, but it's typically the same as a standard overdraft or late payment fee on your account. Interest will also begin to accrue on the unpaid portion at a rate that depends on your card and account terms.
You can make a missed payment manually through your Bank of America app or online banking to stop additional fees from piling up. Contact Bank of America customer service if you need to discuss a payment plan or if you believe the charge was an error. The sooner you address it, the less interest you'll owe.
Where you can use Paze
Paze is available at a growing number of retailers, but not everywhere. Major online retailers, department stores, and some specialty shops support it, though the list changes over time. When you're at checkout, you'll only see Paze as an option if that retailer has partnered with Bank of America for the service.
You can use Paze with any Bank of America debit card or credit card that's linked to your account. Some cards may have restrictions, so check your card terms or call Bank of America if you're unsure whether your specific card works with Paze. The service works online and in physical stores where the retailer has Paze enabled.
How Paze affects your Bank of America account
Each Paze transaction shows up on your Bank of America statement as a separate charge on the payment date. If you split a $100 purchase into 4 payments, you'll see four $25 charges on four different dates. This means your available balance will drop each time a payment is due, so you need to budget for all the payments, not just the first one.
Paze payments don't directly affect your credit score because Bank of America doesn't report them to credit bureaus as a loan or line of credit. However, if you miss payments and they go to collections, that can show up on your credit report. Staying on schedule keeps Paze separate from your credit history.
Paze versus other payment options
Paze is different from a credit card because you're not borrowing money — you're splitting a payment you've already committed to. With a credit card, you choose how much to pay each month. With Paze, the payment schedule is fixed and automatic. This makes Paze simpler if you want to avoid the temptation to carry a balance, but it also means you have less flexibility if your situation changes.
Compared to other buy now, pay later services like Affirm or Klarna, Paze is built into your Bank of America account, so there's no separate app to download or account to manage. The tradeoff is that Paze is only available at retailers that Bank of America has partnered with, whereas other services may have a wider network. Paze also charges late fees and interest like a traditional payment method, whereas some competitors offer interest-free periods even if you miss a payment.
Frequently Asked Questions
Can I cancel a Paze payment plan after I've started it?
Once you've confirmed a Paze purchase, you're committed to the payment schedule. You can't cancel the plan, but you can pay off the remaining balance early through your Bank of America app or online banking without penalty. Contact Bank of America customer service if you need to discuss your options.
Does Paze charge interest if I pay on time?
No. If you make all your payments by the due dates, there is no interest charge. You only pay the amount you agreed to split into payments. Interest only applies if you miss a payment and fail to catch up.
What if I don't have enough money for a Paze payment when it's due?
Contact Bank of America before the payment date if you think you'll miss it. They may be able to work with you on timing or discuss your options. If the payment fails, a late fee will be charged immediately, and interest will start to accrue. The sooner you make the payment, the less you'll owe in fees and interest.
Can I use Paze with a debit card or only a credit card?
You can use Paze with either a Bank of America debit card or credit card. The option available to you depends on which card the retailer supports and which card you choose at checkout. Check with Bank of America if you're unsure whether your specific card is may be able to access.
Will Paze show up on my credit report?
Paze payments don't appear on your credit report as long as you pay on time. If you miss payments and they go unpaid for an extended period, the account may be reported to credit bureaus and affect your credit score. Staying current on all payments keeps Paze off your credit history.