Buy now, pay later rules: what changes on 20 November 2026

What changes on 20 November 2026?

The EU has rewritten its consumer credit rules. Directive (EU) 2023/2225 of 18 October 2023 replaces Directive 2008/48/EC and applies from 20 November 2026. As a directive, it takes effect through each member state's national law, so some details differ from country to country.

The key change for online shopping: buy now, pay later schemes, where a creditor grants you credit solely to buy goods or services from a seller, are now explicitly within scope. Credit below the former EUR 200 threshold is covered too. At the upper end, the rules reach credit of up to EUR 100,000.

Credit agreements that already exist on 20 November 2026 are generally excluded. A few rules still apply to existing open-end agreements, meaning credit without a fixed end date.

Tip: An instalment purchase made on 19 November will usually still run under the old terms, even if the last payment falls due in spring.

Invoice, pay later, instalments: what is what?

At checkout these options look alike. Legally, what matters is who gives you time to pay, whether interest or other charges apply and how long you have. According to the Verbraucherzentrale Hamburg in Germany, instalment plans can run for up to 48 months.

The exclusion for plain invoices is narrow. It applies only where the seller itself gives you time, without a third party offering credit, the price is free of interest and other charges apart from limited late-payment charges under national law, and you pay within 50 days of delivery. For online sellers that are not micro, small or medium-sized enterprises, the limit is 14 days, and no third party may either offer or buy the credit.

What information must you get before you click?

If your purchase falls under the credit rules, the provider must inform you in good time before you are bound by any agreement or offer. This comes in a standard form, the Standard European Consumer Credit Information (SECCI). It sets out the main features and cost of the credit and the annual percentage rate of charge (APR): a single figure representing the total cost of the credit, which makes offers comparable.

Credit advertising must carry a clear warning along the lines of “Caution! Borrowing money costs money”. Because pay-later offers now count as credit, the provider must in principle assess your creditworthiness. Where automated processing is involved, you can ask for human intervention. How credit checks and scores work is covered in Loan application refused: get your credit score explained.

A low product price says little about the final bill. Compare the total you will actually pay, as described in Price rising in the basket: check the final amount before you buy.

Template: asking for the credit information

If you cannot find the credit information, you can ask for it, for example through the contact form: “Hello, before placing my order I would like to check the instalment option. Please send me the Standard European Consumer Credit Information for this credit, including the APR, the total amount payable and the charges for late payment. Kind regards”

Can you withdraw or repay early?

Under EU rules you can withdraw from a credit agreement within 14 days without giving a reason. If you receive the contract terms later, the period starts only then. It then ends at the latest 12 months and 14 days after the agreement was concluded, unless you were never informed of your right of withdrawal.

Small amounts are the big novelty. The previous EU rules did not cover credit under EUR 200, and national rules followed: in Italy, for example, the Banca d'Italia notes that consumer credit information documents are currently required only from EUR 200 and where fees apply. The new directive covers smaller credit, but each country may relax certain rules for very small, interest-free or short-term credit. Your national law and the provider's information show exactly what applies.

You can also repay consumer credit early under EU rules.

Tip: Withdrawing from the credit and sending the goods back are two separate steps. For returning an online purchase, see Withdrawal button: cancel an online purchase in a few clicks.

Late-payment traps: what happens if you miss a due date?

Most extra costs arise after the purchase, not at checkout. In Germany, the Verbraucherzentrale Hamburg points out that a debt collection agency may be brought in as soon as a payment is overdue, without prior reminders, and that some providers report late payments to credit reference agencies. Extending a payment deadline can cost extra too. In Italy, the Banca d'Italia warns that missed deadlines can bring fees and interest that may be high, and that repeated delays can damage your creditworthiness.

In France, two consecutive unpaid monthly instalments on a credit can lead to registration in the national register of credit repayment incidents (FICP) at the Banque de France. The lender must first warn you by letter, and you then have 30 calendar days to settle.

• Set aside the money for each payment at the start of the month.
• Enter every due date in your calendar or turn on reminders in the provider's app.
• Copy the payment reference exactly as it appears on the invoice so your transfer is matched correctly.
• If you struggle to pay, contact the provider early, before reminder and collection costs build up.

The new directive also requires member states to establish debt advisory services.

Country overview: rules, help and special points

The core EU rules are the same everywhere, but registers and complaint routes are national. Switzerland is not an EU member and keeps its own law.

Switzerland: instalments, invoices and late payment

According to the Stiftung für Konsumentenschutz, the Swiss Consumer Credit Act applies if a seller offers instalments from the outset for more than CHF 500, repaid over more than three months; instalments offered only afterwards are not covered. A fact sheet from the Canton of Zurich adds that interest-free and fee-free credit is excluded from the Act altogether. Buying on invoice through a payment processor means accepting its terms, which often include high reminder and collection fees. Swiss law sets default interest at 5% a year unless a higher rate was clearly agreed.

An example: Siobhan chooses how to pay

Fictional example: Siobhan from Cork orders Christmas presents worth EUR 240 from a large online shop at the end of November. At checkout she sees three options: paying by card straight away, “pay in 30 days” through a payment provider, and three monthly instalments. In the past she simply tapped whichever button came first.

This time she opens the credit information for the instalment option before clicking. It shows the APR and the charge if a payment arrives late. Because her salary comes in before the due date, she picks the 30-day option, adds the date to her calendar and sets the money aside on payday.

One present goes back. Before paying, Siobhan checks in the provider's account that the open balance has dropped, and only then pays the rest.