Can I use a credit card to make payments to Afterpay?
While Afterpay accepts payments made from a credit card, there are other interest-free shopping services that don’t. Here’s what you need to know.
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Paying off your interest-free shopping balance with a credit card could help you earn more reward points or give you a bit of extra time to deal with the debt. Whether or not you can use your card depends on which interest-free service you use. On top of this, there can be more risks when you pay off this type of balance with a credit card, as you’re basically moving debt from one account to another.
Use this guide to find out which interest-free payment services accept credit cards and the potential risks involved so that you can pay off your shopping in a way that works for you.
What you'll find in this guide
Which interest-free services accept credit card payments?
If you can’t easily find the payment options available for your interest-free balance, use the table below to see which popular providers do and don’t accept credit cards. We’ve also included details on which cards and other types of payments are accepted in the “Other payment details” column.
|Provider||Does it accept credit cards?||Other payment details|
|Afterpay||Accepts payment from American Express, Mastercard and Visa cards.|
|Brighte||Accepts direct debit payments from a credit card or bank account.|
|Certegy Ezi-Pay||Accepts direct debit payments from a credit card or bank account.|
|CreditLine||Accepts payments through the online service centre, via direct debit, BPAY, personal cheques or in person at participating banks and post offices.|
|Lombard||Similar to a credit card, you can make repayments via BPAY or direct debit from your bank account.|
|Openpay||Accepts payments from valid Mastercard or Visa credit and debit cards.|
|Oxipay||You need an Australian credit card to use this interest-free service.|
|humm||humm technically offers credit cards and accounts similar to credit cards. Payment options are listed on each statement and include BPAY or direct debit from your bank account.|
|zipMoney||Payments must be made via direct debit from your linked debit card or bank account. You can also make additional payments via BPAY.|
|zipPay||Payments must be made via direct debit from your linked debit card. You can also make additional payments via BPAY.|
Why would I use a credit card to pay off interest-free shopping?
Some of the reasons you might want to pay off your Afterpay balance (or another balance) with a credit card include:
- Earning reward or frequent flyer points. If you have a rewards credit card that offers points per $1 spent, using it to pay off your shopping will help you get more rewards.
- Avoiding late payment fees and other charges. Afterpay, Openpay, zipMoney and most other interest-free shopping services charge late fees or interest when you don’t make a payment on time. If you can’t afford to make a payment by the due date, using a credit card gives you a way to avoid these types of costs. However, unless you’re eligible for interest-free days on your card, you could end up paying more in interest charges.
- Getting rid of the account. If you’ve signed up for an interest-free service and then decided you want to close the account, you could use a credit card to pay off the balance. This can also make it easier to manage your debts, as you’ll have one less repayment to think about.
What if I want to close my interest-free account but can’t pay by credit card?
You need to settle your interest-free account balance before you can close it for good. So, if you can’t afford to pay it off with your own money and credit card payments are not accepted, another option is to consolidate a zipMoney balance on a balance transfer card.
You could also look at other credit card debt consolidation options. Just make sure you check that your interest-free debt will be accepted before you apply, because some of these options only offer debt consolidation for certain types of accounts.
What are the risks of using a credit card to pay off my Afterpay or interest-free debt
Make sure you consider these potential issues before using your credit card for interest-free shopping payments:
- Adding to your credit card debt. The biggest potential issue with paying off an interest-free balance with a credit card is that you’ll just move the debt from one account to another, without actually getting rid of it.
- Paying interest on the debt. Unless you pay off your credit card balance in full each month, you’ll be charged interest on the payment you make to Afterpay or another similar service. This means it won’t be interest-free anymore, which basically defeats the purpose of using one of these services.
- Taking longer to clear the balance. Most interest-free payment services offer fixed-term payment plans, which means you have a set amount of time to clear your debt. Credit cards, on the other hand, typically have minimum repayments worth around 2–3% of what you owe. If you only paid this amount each month, it could take you years to pay off the debt.
Other details to consider
- How to set up payments from a credit card. Most interest-free payment services offer direct debit payments. To set up the debit from your credit card account, you’ll need to enter the card number, the name on the card, the expiry date and the security code.
- Making additional payments. Some services, such as Afterpay and Openpay, allow you to make one-off payments in addition to your scheduled payment. In this case, you’ll need to follow the prompts to make an additional payment and enter your credit card details when they are requested.
- Credit limits and available credit. If you set up direct debit repayments from your credit card and don’t have enough available credit when a payment is due, you could be charged two sets of fees: one from the interest-free service (a late payment fee) and one from your credit card company due to the declined transaction (a dishonour fee).
- Financial support. Most interest-free payment services offer financial support and plans if you’re struggling to make payments. So if that’s the reason you want to use your credit card, it’s a good idea to discuss your options with the interest-free provider first. Otherwise you could end up with more debt in the form of credit card interest charges.
Interest-free finance and credit cards both offer you flexible ways to buy what you want and pay it off over time, so they don’t usually go together very well. But if you really want to use a credit card for your balance with Afterpay or another interest-free service, make sure you weigh up the risks and potential costs before going ahead with a payment.
Most of the time it’s safer to use a debit card or buy what you want upfront. Or, if you want to pay with a credit card to earn points, consider using the card to pay for what you want in the first place so that you don’t have to deal with an interest-free balance at all.
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