Whether you’re considering partnering with Afterpay – or you’re already offering it to your customers – here’s what you can expect.
Wondering exactly how Afterpay works for merchants? In short, it’s as seamless for you as it is for your customers.
Table of contents:
- How Afterpay works for merchants
- Setting up Afterpay for your business
- Afterpay support and business resources
How Afterpay works for merchants
A customer purchases an item from your website or business using Afterpay and pays in 4 interest-free installments over 6 weeks. For purchases over $400, they can also choose Pay Monthly, a longer term consumer lending product, with the option to pay over six to 12 months*.
For online purchases, you will receive your settlement fund from Afterpay within days. For in-store purchases, funds are settled via your card payment processor or acquiring partner.
You can keep track of all payments and orders via daily settlement reports in the Afterpay Business Hub or via email.
How do in-store Afterpay payments work for businesses?
When an in-store customer makes a purchase using Afterpay, they simply tap and pay using the Afterpay App or Afterpay Card.
In other words, Afterpay payments are processed in the same way as any Visa or Mastercard transaction. However, while your customer pays in installments, you receive the full sale amount upfront.
Funds are settled via your card payment processor or acquiring partner. This takes one to five business days, depending on your agreement with us.
You can log in to Afterpay Business Hub to keep track of Afterpay orders and payments at any time.
How do online payments work for merchants?
When customers purchase online, they select Afterpay as the payment option at checkout.
As with in-store payments, you will be paid upfront, even though your customer is paying in installments or (for payments over $400) paying monthly over six to 12 months.
When will I receive funds?
As an Afterpay merchant, you’ll be assigned a reconciliation period of between one and five business days in your agreement with us. You can find out more about this here.
How can I see my orders and any reconciliations?
You can check and analyze your Afterpay orders at any time using Afterpay Business Hub.
What happens if the product is returned or needs to be refunded?
In the event of a return or refund, you simply process the return as you normally would online or through your in-store point-of-sale terminal.
If the customer has made payments to Afterpay already, Afterpay will refund those payments.
At the next settlement date, Afterpay will then debit your account for the amount returned, less Afterpay fees. You can find Afterpay’s Returns Guide here, plus more information on refunds here.
Setting up Afterpay for your business
How can I set up Afterpay for business?
You can set up an Afterpay business account by signing up here. To get started, you’ll need information like your tax identification number and website URL.
Once your application is approved, you can add Afterpay to your website (using Afterpay Developer docs and Merchant Marketing Resources). Meanwhile, in-store merchants can activate Afterpay Card to accept Afterpay payments in-store from your existing point of sale. As part of the onboarding process, in-store merchants will also be sent visual merchandise to help promote your partnership with Afterpay.
Support and business resources
What kind of support is available to me as an Afterpay merchant?
- Merchant Support Team: You can submit a question through our website.
- Developer and API Documentation: Afterpay also offers a range of assets and developer/API documentation to help you install and integrate Afterpay across your business.
- Business Hub: The Afterpay Business Hub is a centralized platform where you can manage all aspects of your Afterpay account. It allows you to view and settle orders, manage integrations, and access performance reports. Additionally, you can find the latest news, product updates, and training materials to help optimize your business operations.
- Marketing Resources: Afterpay offers a library of marketing resources designed to help you promote Afterpay across your online and in-store channels. This includes visual merchandising kits, training materials, and access to trade events to drive incremental sales.
How can Afterpay help my business grow?
There’s much more to Afterpay than payments. Afterpay can help you grow your business, boost average order value1, grow cart conversions and drive customer loyalty.
Discover how Afterpay has helped businesses like yours grow
Whether you’re a retailer or service provider, a florist or a pharmacy, Afterpay offers a raft of benefits. Discover tips and insights from business owners who have used Afterpay to grow sales here.
Apply for Afterpay for business here.
All references to any registered trademarks are the property of their respective owners. Afterpay does not endorse or recommend any one particular supplier and the information provided is for educational purposes only.
1Mastercard Test & Learn Incrementality study, 2022
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