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Afterpay interest-free payments

A no interest loan for a specific purchase: Find out how Afterpay works.

You might have already seen Afterpay as a payment option in stores and online. 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 for 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. 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 interest. It works like a no-interest loan. You have longer to pay for your chosen item for no extra 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 to get them off your plate.
  • 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 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. For each Afterpay order you can be charged a maximum of one $10 lare fee per order. For any order that's $40 or above, you can be charged late fees that total 25% of the origial 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, such as Experian.

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 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 formAll 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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19 Responses

  1. 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

  2. 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?

    • finder 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

  3. Default Gravatar
    wendyJune 12, 2018

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

    • finder 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

  4. 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?

    • finder 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

  5. Default Gravatar
    SylvieMay 24, 2018

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

    • finder Customer Care
      NikkiMay 24, 2018Staff

      Hi Sylvie,

      Thanks for leaving a question on our page.

      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.

      Cheers,
      Nikki

  6. Default Gravatar
    JenApril 17, 2018

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

    Thanks

    Jen

    • finder Customer Care
      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.

      Cheers,
      May

  7. Default Gravatar
    MalcolmApril 13, 2018

    When can I do it

    • finder Customer Care
      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.

      Cheers,
      May

  8. 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?

    • finder Customer Care
      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!

      Cheers,
      Jeni

    • Default Gravatar
      April 6, 2018

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

  9. Default Gravatar
    GavinFebruary 6, 2018

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

    • Default Gravatar
      JoelFebruary 17, 2018

      Hi Gavin,

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

      Cheers,
      Joel

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