Consider the $t$-channel diagram of $\phi^4$ one-loop diagrams. Evaluated it is, with loop momenta $p$,
$$\frac{\lambda^2}{2}\displaystyle\int\frac{d^4p}{(2\pi)^4}\frac{1}{(p+q)^2-m^2}\frac{1}{p^2-m^2}.$$
If I want to regularize this using Pauli-Villars regularization, which is the correct method? The procedure is to make the replacement $$\frac{1}{p^2-m^2}\rightarrow \frac{1}{p^2-m^2}-\frac{1}{p^2-\Lambda^2}. $$
My question is do I apply the regularization to one term in the integral or both terms?
I've seen variations where the propagators become $$\frac{1}{p^2-m^2}\frac{1}{(p+q)^2-m^2}\rightarrow \frac{1}{p^2-m^2}\frac{1}{(p+q)^2-m^2}-\frac{1}{p^2-\Lambda^2}\frac{1}{(p+q)^2-\Lambda^2}$$ and also where we have $$\frac{1}{p^2-m^2}\frac{1}{(p+q)^2-m^2}\rightarrow (\frac{1}{p^2-m^2}-\frac{1}{p^2-\Lambda^2})(\frac{1}{(p+q)^2-m^2}-\frac{1}{(p+q)^2-\Lambda^2}).$$
In the latter case one ends up with four terms and each term is then evaluated using a Feynman parameter and integrating over Wick-rotated momenta, obtaining a logarithmic expression.
I'm pretty sure I've also seen where it was only applied to one of the terms.
Which is correct? (or are they equivalent?)
