Understanding Afterpay Merchant Limits and Customer Pay in 4 Spend Limits
Afterpay has spend limits for merchants and customers. Here’s what you need to know.
Afterpay has spend limits for merchants and customers. Here’s what you need to know.
Afterpay delivers benefits to customers and merchants – and that’s by design.
Afterpay delivers benefits to customers and merchants
– and that’s by design.
From the outset, Afterpay was created to power a more accessible world where everyone wins. Central to this belief is a commitment to responsible spending and financial wellness.
That's why every customer has a Pay in 4 spend limit, and why you, as a merchant, are also subject to maximum spend limits.
What is a customer’s ‘available to spend limit’?
Every customer has an individual Pay in 4 'available to spend', which is the maximum amount they can spend with Pay in 4. For new customers, this likely starts at a few hundred dollars, and can gradually increase up to a maximum of $2000.
How does a customer's 'available to spend limit' increase?
Customers' Pay in 4 spend limits only increase with responsible spending, meaning the customer paying on time. Customers can check their Pay in 4 available to spend within their Afterpay account.
What is a merchant’s maximum spend limit?
Merchants also have maximum Pay in 4 spend limits, and this usually varies between $2000 and $4000, depending on factors such as the type of goods or services the business offers.
The reason we set maximum spend limits for merchants is because there's a higher risk that customers won't make payments on time when they make bigger purchases (and therefore must make larger payments). Maximum spend limits are good for both businesses and customers.
Is there a way to get around merchant maximum spend limits?
Yes. Customers can make purchases using a combination of Pay in 4 and another payment method (such as a debit card). Or, you can split the purchase into two separate payments. For example, if your merchant spend limit is $2500, but a product is $3500, you could split the purchase into two separate Pay in 4 payments of $2500 and $1000 (dependent on the customer's Pay in 4 spend limit and the merchant's spend limit).
Want more out of your Afterpay Business experience?
Discover more tips and tricks on managing your Afterpay payments, including how to get set up with in-person or online payments, or check out our handy Afterpay Guide.
