Afterpay interest-free payments

A way to make a purchase and pay for it later, without interest.

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You might have already seen Afterpay as a payment option in stores and online. When you buy something, you can simply select Afterpay as your payment method and have eight weeks to pay the amount back in four instalments, with no interest. Costs only incur if you fail to make your repayments on time.

It’s already fully integrated into a lot of Australian stores so that you can buy now and pay later. Find out how Afterpay works here.

How does Afterpay work?

You can start shopping with Afterpay by signing up and linking an Australian Visa or Mastercard debit or credit card. All you have to do is sign up and confirm your details.

  • Online. Buy online by selecting Afterpay at the checkout.
  • In store. Buy in store at selected retailers by using your phone to visit afterpayit.com.au and entering the amount you want. You’ll get a barcode on your phone that can be scanned at the cash register.

Two weeks after you’ve made your purchase, you’ll need to pay back the first quarter of the outstanding amount, with the remaining quarters paid back every two weeks after that. Payments are processed automatically. You’ll receive reminders before payments are due.

In order to make sure the service is free to use for everyone, the amount you can spend at any one time may be subject to approval. Purchases over $500 will require the first quarter of payment at the time of purchase. All this information will be communicated to you before you’ve paid, so you can always make an informed decision.

See the full Afterpay store list

Features of shopping with Afterpay

  • No interest. It works like a no-interest loan. You have longer to pay for your chosen item, for no added interest.
  • No advance signup for in-store purchases. Even if you don’t have an account, you can still walk into a selected retailer and choose Afterpay. You’ll just need to sign up later.
  • Manage your account. Sign in to see your upcoming payments, orders and account information.
  • Reminders. You’ll be notified ahead of time when a payment is coming up and how much it is, so that you can make sure there’s no overdrawing.
  • Automatic deductions. Each quarter amount is automatically deducted from your chosen card to make sure you can keep up with your repayments, even if you’re busy or you can’t get online.
  • Refunds and more. You can still get a refund for purchases you’ve made with Afterpay, in line with each store’s refunds policy.
  • Pay in advance. You can pay instalments ahead of time, penalty-free.
  • Market-leading security. Afterpay is a PCI DSS Level 1 certified compliant service provider. This is the highest level of payment security there is, for both your card details and your personal information.

How much does Afterpay cost?

There are two costs involved with Afterpay. One of them is the cost of the item you’re buying. The other is a late fee for missed instalments.

If a deduction is unsuccessful, you will be notified and you will have a chance to log in and choose a different payment method. Failure to do so will incur a $10 late fee. If you fail to make a payment within seven days, you'll be charged a further $7. For each Afterpay order you can be charged a maximum of one $10 late fee per order. For any order of $40 or above, you can be charged late fees of 25% of the original order, or a maximum of $68 - whichever is higher.

If you fail to make repayments, Afterpay holds the right to report it to a credit reporting bureau.

Is Afterpay safe?

Afterpay is touted as a new way to pay and different from traditional credit products, but it is important to still be careful with Afterpay. While Afterpay does not check your credit history before you apply, it still reserves the right to report defaults to credit reporting bureaus such as Experian or Equifax. You need to keep this mind before you apply.

In terms of your information, Afterpay is a PCI DSS Level 1 certified compliant Service Provider organisation. This means that it abides by the comprehensive set of requirements to keep your data secure.

How to sign up for Afterpay

In order to sign up you have to:

  • Be at least 18 years old and capable of entering into a legally binding contract
  • Have a valid and verifiable email address and mobile number
  • Have an Australian credit or debit card

Afterpay is not a store credit application. You don’t have to sign anything or fill out an application form. All you have to do make sure you’ve read the details and signed up online.

Watch: Afterpay vs Credit cards: Which is better?

Have more questions about Afterpay?

How does Afterpay make money?

Afterpay doesn't charge customers to use its service, but rather makes money by charging retailers fees for offering the service. It also makes some money (approximately 17%, according to SMH) by charging customers late fees.

Is it really "interest-free"?

Afterpay's platform will not charge you interest. However, if you use a credit card as your payment method then you can be charged interest. Interest-free periods on credit cards are usually 55 days if you have paid your previous statement period's balance in full, whereas Afterpay offers repayment terms of 56 days. Check the interest-free period on your credit card and aim to repay it within that timeframe if you really don't want to be charged interest with Afterpay.

Can I get a refund on an item I've purchased with Afterpay?

Yes, full and partial refunds are available. Keep in mind you may be charged for the item by Afterpay if the refund has not been processed by the retailer yet. However, you will be refunded for any payments.

How do I know how much I have to spend each time I make a purchase with Afterpay?

Unfortunately, you don't. Afterpay uses an automated system to approve you for an amount on a purchase-by-purchase basis. According to Afterpay, the longer you've held an account and the more purchases you successfully repay, the more likely you are to be approved for a higher amount.


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31 Responses

  1. Default Gravatar
    JackieMarch 19, 2019

    My Afterpay account has been closed and when I contacted them, I was told it was because of overdue money even though I have no outstanding purchases. They mentioned that I can reapply in 6-12 months. Not sure why this happened.

    • Avatarfinder Customer Care
      JoshuaMarch 20, 2019Staff

      Hi Jackie,

      Thanks for getting in touch with Finder. I’m sorry to hear about your situation.

      What I can advise is for you to present proofs that you don’t have outstanding purchases. Show them that you made timely repayments. From there, they should also be able to show you proofs that prove otherwise. By discussing your problem with them, you can better understand why your account was closed.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  2. Default Gravatar
    KelMarch 4, 2019

    Hi,

    So I have sent up an account with Afterpay. I tried to add my bank card details but it said can’t be accepted, is this because there is no money in the account ATM? Will it work when there is funds in that account?

    • Avatarfinder Customer Care
      JeniMarch 5, 2019Staff

      Hi Kel,

      Thank you for getting in touch with Finder.

      One of the qualifications to set up an Afterpay account is to make sure that there’s sufficient funds in your account like at least 25% of the purchase price. You may try again after depositing funds into your account and it should push through. Kindly contact Afterpay’s customer support team in the event that your account application is still unsuccessful.

      I hope this helps.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

  3. Default Gravatar
    LalaFebruary 28, 2019

    Can I still reinstate my afterpay account after it goes to collections?

    • Avatarfinder Customer Care
      JhezMarch 2, 2019Staff

      Hi Lala,

      Thank you for your comment.

      Once you paid your account in full, you can apply for your account to be reinstated. You may contact Afterpay support directly.

      Regards,
      Jhezelyn

  4. Default Gravatar
    NGFebruary 8, 2019

    Does choosing AfterPay result in any form of credit check on my profile?

    • Avatarfinder Customer Care
      JeniFebruary 11, 2019Staff

      Hi NG,

      Thank you for getting in touch with finder.

      No, Afterpay does not check your credit history before you apply however it still reserves the right report defaults to credit reporting bureaus such as Experian or Equifax.

      I hope this helps.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

  5. Default Gravatar
    TylerJanuary 8, 2019

    You said – the late fee for missed installments (late fees are capped at $8 or 25% of the purchase value, whichever is less.) on a reply. But on this page it’s saying you can be charged late fees that total 25% of the original order or a maximum of $68 , whichever is higher. ?

    • Avatarfinder Customer Care
      ValJanuary 9, 2019Staff

      Hi Tyler,

      Thank you for leaving a question.

      For each order below $40, a maximum of one $10 late fee may be applied per order. For each order of $40 or above, the total of the late fees that may be applied are capped at 25% of the original order value or $68, whichever is LESS.

      To verify the charge, please contact Afterpay directly.

      Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.

      Cheers,
      Val

  6. Default Gravatar
    SoniaJanuary 3, 2019

    I’ve noticed that a monthly fee of $1.76 is coming out of my account, isn’t there meant to be no fees or charges for Afterpay?

    • Avatarfinder Customer Care
      JhezJanuary 3, 2019Staff

      Hello Sonia,

      Thank you for your comment.

      There are only two costs involved when you use Afterpay:
      – the cost of the item you’re buying
      – the late fee for missed installments (late fees are capped at $8 or 25% of the purchase value, whichever is less.)

      To verify the charge, please contact Afterpay directly.

      Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.

      Regards,
      Jhezelyn

  7. Default Gravatar
    JulianneJuly 21, 2018

    Can you please email me my account number and balance please

    • Default Gravatar
      JoelJuly 21, 2018

      Hi Julianne,

      Thanks for leaving a question on finder.

      Please note that finder is a financial comparison and information website that helps consumers make better decisions. We do not represent any of the providers we feature on our website.

      To get your account number and balance please contact Afterpay directly by filling out the customer service form in their website.

      Cheers,
      Joel

  8. Default Gravatar
    PaulJuly 8, 2018

    If you opt to put your credit card for the payment option, will the payment on the card for each installment be treated as a normal purchase and will go through the normal billing cycle of the CC company with no other charges?

    • Avatarfinder Customer Care
      NikkiJuly 13, 2018Staff

      Hi Paul!

      Thanks for getting in touch! Great question!

      Afterpay’s platform will not charge you interest. However, if you use a credit card as your payment method then you can be charged interest. Interest-free periods on credit cards are usually 55 days if you have paid your previous statement period’s balance in full, whereas Afterpay offers repayment terms of 56 days. Check the interest-free period on your credit card and aim to repay it within that timeframe if you really don’t want to be charged interest with Afterpay.

      Hope this helps!

      Cheers,
      Nikki

  9. Default Gravatar
    wendyJune 12, 2018

    how do i check how much is owing on my afterpay account

    • Avatarfinder Customer Care
      NikkiJune 12, 2018Staff

      Hi Wendy,

      Thanks for getting in touch!

      To see your payables in your Afterpay, simply go to the website and enroll for an account. Sign in to see your upcoming payments, orders and account information.

      Hope this clarifies.

      Cheers,
      Nikki

  10. Default Gravatar
    ChelseaJune 8, 2018

    Hi,
    I’m wondering if you can pay a deposit at the store and then Afterpay the balance. For example if my purchase was $1000, could I pay $500 in store and Afterpay the remaining $500?

    • Avatarfinder Customer Care
      NikkiJune 8, 2018Staff

      Hey Chelsea,

      Thanks for getting in touch with finder.

      Essentially, paying a deposit at the store is already a different payment option as it is. If you wish to pay a deposit for an item, you can ask the store if they will allow it. Afterpay is used for the sole purpose of installments.

      Hope this helps!

      Cheers,
      Nikki

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