How Afterpay works - for your customers

Put simply, Afterpay allows your customers to pay in 4 instalments over 6 weeks. 

Customers can use Afterpay in your business or online. (In fact, many Australians use Afterpay’s Shop Directory to discover and shop Afterpay merchants. Last year, the Shop Directory sent 27 million referrals to Afterpay businesses, globally).

When customers pay with Afterpay online.

When it’s time to complete their purchase, new customers simply choose Afterpay as the payment option at checkout. They will then repay Afterpay in 4 instalments over 6 weeks.  

When customers pay with Afterpay in your store.

In your business, the process is just as easy: customers simply use the Afterpay app, and tap to pay with Apple Pay, Google Pay or Samsung Pay - just like they do with any other digital card. Again, remaining payments are spread over the following six weeks.

What happens if customers miss a payment?

If a customer misses a payment, they won't be able to buy anything else until their payments are up to date. Customers may notice their spending limit decreases too; this is because our system takes into account a range of different factors, including late payments, in deciding spending limits. Ultimately, all steps we take are to help customers spend responsibly with Afterpay.

Even if customers miss a payment, you (the merchant) will not be affected.

How much are late fees for customers?

Total customer late fees are capped at 25% of the order price, and will never exceed $68 per order, regardless of the order amount:

• For orders $40 and over: each time a payment is late, an initial fee of $10 will be charged. A further fee of up to $7 will be charged if the payment remains unpaid seven days after the due date. For example: A $60 order with four $15 instalments will incur an initial $10 late fee, and a further $5 if the payment remains unpaid seven days after the due date. 
• For orders under $40: the maximum possible late fee is $10 and will only be charged once. For example: A $20 order with four $5 instalments will only ever incur a one off $5 late fee.

We also pause a customers' account until the balance is paid and they're back on track. We’re committed to doing everything we can to help customers not miss a payment. We’ve designed Afterpay to be completely different to traditional credit products that charge interest, so that our customers are never in a situation of high compounding interest and revolving debt.