Afterpay interest-free payments

Afterpay works like a loan, but with zero interest, no extra costs and a whole lot more.

You might have already seen Afterpay as a payment option in stores and online. If you haven’t, you probably will soon. Afterpay is simple. When you buy something, simply select Afterpay as your payment method. Then you’ll have eight weeks to pay the amount back in four instalments, at no extra cost.

It’s already fully integrated in a lot of Australian stores so that you can buy now and pay later without paying a cent more than the price of whatever you’re buying.

How does Afterpay work?

You can start shopping with Afterpay by simply signing up and linking an Australian Visa or Mastercard debit or credit card. There’s no paperwork or complicated approvals process. All you have to do is sign up and confirm your details and you’re good to go.

  • Online. Buy online by selecting Afterpay at the checkout.
  • In store. Buy in store at selected retailers by using your phone to visit 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. You’ll receive reminders before payments are due and they’ll be processed automatically when the time comes so that you don’t have to worry about it.

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, and with any purchases over $500 you’ll need to pay the first quarter at the time of purchase. All of this will be communicated to you before you’ve paid, so you can always make the right decision.

See the full Afterpay store list

Features of shopping with Afterpay

  • No extra cost. It works like a no-interest loan. You have a lot longer to pay and you don’t have to pay a cent more than the actual cost of the item.
  • Borrow what you need. Short on cash while shopping? Choose to pay for only part of the purchase yourself and use Afterpay for the rest.
  • Immediate use. If you’re reading this on your phone, you could spend a minute signing up right now and start using Afterpay at nearly 1,000 stores right away.
  • 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. Changed your mind? 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 to get them off your plate, once again at no extra cost.
  • 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?

Afterpay is a free service. There are only two costs involved and 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. If you don't you'll be charged a $10 late fee. If you fail to make a payment within seven days you'll be charged a further $7. You can also change payment methods at any time, or even have multiple payment options to make sure you’re always able to keep up and keep using the Afterpay service.

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

Is Afterpay safe?

Afterpay is touted as a new way to pay and different from traditional credit products, but it is important to remember that Afterpay is still a credit product. Afterpay reserves the right to check your credit history and 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

And that’s it! Afterpay is not a store credit application. You don’t have to sign anything or fill out an application form, but Afterpay may check your credit. All you have to do make sure you’ve read the details, signed up online and you’re good to go.

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. To find out about your refund, contact the retailer as they need to notify Afterpay they've received your item.

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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11 Responses

  1. Default Gravatar
    SylvieMay 24, 2018

    Does it work if I have a NZ credit card and use Afterpay in Australia?

    • Staff
      NikkiMay 24, 2018Staff

      Hi Sylvie,

      Thanks for your message and for visiting finder – the leading comparison website & general information service built to give you advice in your buying decision needs. How are you doing today?

      Please note that we’re a product comparison website and we do not represent any company we feature on our site. We provide general information on products to assist you in your buying decision process hence we cannot recommend product/service that is rightfully fit for you.

      As long as you have an Australian Visa or Mastercard debit or credit card you can us AfterPay.

      Hope this was helpful. Don’t hesitate to message us back if you have more questions.


  2. Default Gravatar
    JenApril 17, 2018

    Can afterpay be used for services supplied by a home hairdresser. Eg. Cut and colouring?



    • Staff
      MayApril 17, 2018Staff

      Hi Jen,

      Thanks for reaching out.

      Afterpay works both online and in-store, so if you think it’ll be right for your business, you have the option how it will suit you best. If you need more info, please check our retail guide to Afterpay on this page.

      Hope this helps.


  3. Default Gravatar
    MalcolmApril 13, 2018

    When can I do it

    • Staff
      MayApril 13, 2018Staff

      Hi Malcolm,

      Thank you for reaching out. If you could please clarify your question a bit more, that would be great. We’re here to assist in any way we can.


  4. Default Gravatar
    VickiApril 5, 2018

    If there are no charges, why did $2 just come out of my bank account from Afterpay Sydney when my payments come out of Afterpay Melbourne?

    • Staff
      JeniApril 5, 2018Staff

      Hi Vicki,

      Thank you for getting in touch with finder.

      Since you mentioned that there’s a charge of $2 from Afterpay that you didn’t approve or recognise, I suggest that you contact them regarding this matter.

      From the website’s terms, it says “(j) Immediately contact us if you believe that your Afterpay Account may be subject to an unauthorised transaction, account takeover or other type of fraudulent activity or security breach;”

      As a friendly reminder, while we do not represent any company we feature on our pages, we can offer you general advice.

      I hope this helps.

      Have a great day!


    • Default Gravatar
      April 6, 2018

      Thanks Jeni for your reply, very much appreciated.
      Regards Vicki

  5. Default Gravatar
    GavinFebruary 6, 2018

    Can you pay out the item in full and in advance before the full periodical payment?

    • Staff
      JoelFebruary 17, 2018Staff

      Hi Gavin,

      Thanks for leaving a question on finder. Yes you can pay in advance.


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