Post-payment review

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You’ve probably been to your favorite retailer’s website and noticed the possibility of splitting your purchase into bi-weekly payments. If you’ve ever been tempted to buy something you can’t afford up front, “buy now, pay later” is meant to be an alternative to credit cards.

There are a number of different BNPL providers, but After payment, Klarna and To affirm are among the most popular.

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After payment is an Australia-based BNPL provider that took American consumers by storm: At the end of June 2021, Afterpay had more than 16 million customers and was available at nearly 100,000 merchants worldwide, including popular retailers like Target, lululemon, ASOS, and Nike. In August 2021, it was acquired by Square for $ 29 billion, a sign of its growing popularity.

If you are considering using Afterpay to finance your new clothes or household items, Select explains how to use it, whether it impacts your credit score and its late fees.

After payment

  • Interest rate

  • Loan conditions

    Afterpay only offers one loan option: customers can make 4 installments over 6 weeks. You have to make a deposit (usually 25% of the order) and then a payment every two weeks.

  • Costs

    Afterpay charges a late fee: $ 8 or 25% of the transaction, whichever is less.

  • Return policy

    To return items, you will first need to go through the merchant. Since you don’t pay interest on your Afterpay loan, you don’t have to worry about not being paid back the interest. Afterpay also offers partial refunds on orders. However, you will still be obligated to pay until the merchant has accepted and processed the return.

  • Available merchants

    Around 100,000 traders around the world. Consumers can also use the Afterpay card to pay for in-store purchases. However, this is only available to certain customers at certain retailers such as Amazon, CVS, Target, Nordstrom, and Macy’s.

  • Amount of the loan

    The amount of credit you can access depends on how long you’ve been an Afterpay customer and whether you’re making your payments on time and in full. A new user will be able to spend less than someone with a longer history. The more you use Afterpay, the more you can spend with it.


  • 0% interest on all credit options
  • Does not perform a credit check
  • Doesn’t report to the credit bureaus so it doesn’t affect your credit score

The inconvenients

  • There is a $ 8 fee for each late payment
  • Consumers are unlikely to be approved for a higher credit limit until you have been a repeat customer

How does Afterpay work?

Consumers can use Afterpay through the app, the website, or directly through the merchant. The Afterpay application is available in the Google play store and the App Store.

You can use After payment either online or in store. If you shop online, you can use Afterpay at any retailer of your choice, whether or not it’s a payment option offered at checkout. If it is not offered on the retailer’s website, you can use the Afterpay virtual card via the Afterpay application for a card number to be entered at the checkout.

Likewise, if you shop in person, you can download the app and it will generate a Afterpay virtual card that you can use in store.

APR and fees

Afterpay only offers one product: a six-week finance option with payments due every two weeks after you’ve (usually) made a down payment. As this is a short term funding option, the average order value of Afterpay is quite low, only $ 155.

One of the main advantages of using Afterpay is that you don’t have to pay interest when using the service. However, if you are late with your payments, you could incur late fees.

“If a customer misses a payment, they are charged a fee of $ 8 or 25% of the transaction, whichever is less. And then he can’t use our platform until the payment is made, ”says Amanda Pires, vice president of communications at After-Payment.

Customers can defer payment per order if they want to avoid late fee. If you can’t make your second or third payment on time, customers can reschedule them a few days later, but they must reschedule their payments within 24 hours of the due date.

How to apply for a loan

After payment does not perform credit checks when approving consumers. Instead, it uses a proprietary risk model to assess customers, including looking at the order value (a lower order value may be more likely to be approved), the amount of funds you have on your debit card, or of credit and the length of time you have used Afterpay.

You must share your email, phone number, address, date of birth, and a debit or credit card when requesting approval for an order.

Payment methods

Consumers can either use a debit or credit card to pay for purchases with Afterpay. About 90% of Afterpay customers use a debit card to finance their purchases, according to an Afterpay spokesperson.

After payment has an auto-pay option, so the provider will take the money from your card on the payout due date so you don’t have to worry about missing a payment and getting ringed with late fee.

You’ll want to make sure there is enough money in your checking account, however, if you are paying by debit card – if you can’t make any of your installment payments, you don’t want to be impacted by the fees. late Afterpay and your bank’s overdraft fee, which can be up to $ 35.

Amount of the loan

There is no hard limit on the amount you can subscribe with Afterpay – it depends on your payment history with the provider and the merchant’s limitations. With After payment, the more on time you make your payments, the more money you can spend on the service.

Afterpay takes a variety of different factors into account in determining how much customers can spend, including whether scheduled payments have been declined, the frequency of late payments, and how late a payment has been made.

Impact on credit rating


To return an item you purchased through After payment, you need to contact the merchant. You will also need to continue making payments on your purchases until the return has been processed by the merchant. However, consumers can delay payments by contacting Afterpay.

If you purchase a defective item or have a problem with the quality of the good and you are unable to resolve the issue with the merchant, you will need to contact your credit or debit card issuer to get your refund. .

Since Afterpay only allows consumers to pay with a credit or debit card (rather than directly logging into a bank account), consumers can enjoy the same protections as when using their payment cards. directly from the retailer, Pires explains.

At the end of the line

After payment is an easy way to fund your small tickets. Since there are no credit checks, no reports to credit bureaus, and no interest, this BNPL provider is a solid option for people who are confident they can make their payments on time and avoid late fees. .

If you are worried about the quality of the items you are going to receive or the reliability of the merchant, you should probably go with a credit card rather than cards like The American Express Blue Cash Preferred® card, which has benefits such as return and purchase protection. With this card you also have the opportunity to earn money on every purchase.

American Express Blue Cash Preferred® Card

On the secure American Express site

  • Awards

    6% cash back in US supermarkets up to $ 6,000 per year in purchases (then 1%), 6% cash back on select US streaming subscriptions, 3% cash back in stores US gas stations, 3% cash back on public transportation including taxis / carpooling, parking, tolls, trains, buses and more and 1% cash back on other purchases. Cash back is received in the form of reward dollars which can be redeemed as a credit on the statement.

  • Welcome bonus

    Get a $ 300 credit on your statement after spending $ 3,000 on purchases with your new card in the first 6 months.

  • Annual subscription

    $ 0 annual start-up fee for the first year, then $ 95

  • Intro APR

    0% for the first 12 months on purchases, N / A for balance transfers

  • Regular APR

    13.99% to 23.99% variable

  • Balance transfer fees

  • Foreign transaction fees

  • Credit needed

Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.

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