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Afterpay review: interest-free payments on online purchases
Afterpay works like a loan, but with zero interest, no extra costs and a whole lot more.
You might have already seen Afterpay as a payment option in stores and online. If you haven’t, you probably will soon. Afterpay is simple. When you buy something, simply select Afterpay as your payment method. Then you’ll have several weeks to pay the amount back in four installments, at no extra cost.
It’s already fully integrated in a number of stores so that you can buy now and pay later without paying a cent more than the price of whatever you’re buying.
How does Afterpay work?
You can start shopping with Afterpay by simply signing up and linking your debit or credit card. There’s no paperwork or complicated approvals process. All you have to do is sign up and confirm your details and you’re good to go. Simply select Afterpay as your payment option at checkout.
At the time of purchase, you’ll need to pay the first quarter of the total amount, with the remaining three quarters paid back every two weeks after that. You’ll receive reminders before payments are due and they’ll be processed automatically when the time comes so that you don’t have to worry about it.
In order to make sure the service is free to use for everyone, the amount you can spend at any one time is subject to approval. Approval is based on a variety of factors, including the number of unpaid Afterpay accounts you have and your history paying off your Afterpay accounts.
Features of shopping with Afterpay
- No extra cost. It works like a no-interest loan. You have a lot longer to pay and you don’t have to pay a cent more than the actual cost of the item.
- Borrow what you need. Short on cash while shopping? Choose to pay for only part of the purchase yourself and use Afterpay for the rest.
- Immediate use. If you’re reading this on your phone, you could spend a minute signing up right now and start using Afterpay right away.
- Manage your account. Sign in to see your upcoming payments, orders and account information.
- Reminders. You’ll be notified ahead of time when a payment is coming up and how much it is so that you can make sure there’s enough money in your account.
- Automatic deductions. Each quarter amount is automatically deducted from your chosen card to make sure you can keep up with your repayments, even if you’re busy or you can’t get online.
- Refunds and more. Changed your mind? You can still get a refund for purchases you’ve made with Afterpay, in line with each store’s refunds policy.
- Pay in advance. You can pay installments ahead of time to get them off your plate, once again at no extra cost.
- Market-leading security. Afterpay uses an extremely high level of security for both your card details and your personal information.
How much does Afterpay cost?
Afterpay is a free service. There are only two costs involved and one of them is the cost of the item you’re buying. The other is a late fee for missed installments.
If a payment is unsuccessful, you will be notified and you will have a chance to log in and choose a different payment method. If you don’t pay by 11 PM EST the next day, you’ll be charged an $8 late fee. If you fail to make a payment within seven days you’ll be charged another $8 fee. Late fees are capped at $8 or 25% of the purchase value, whichever is less. You can also change payment methods at any time, or even have multiple payment options to make sure you’re always able to keep up and keep using the Afterpay service.
If you fail to make repayments, Afterpay could report it to a credit reporting bureau, which may affect your credit score.
Is Afterpay safe?
Afterpay is touted as a new way to pay and different from traditional credit products, but it is important to remember that Afterpay is still a type of credit. Afterpay may report defaults to credit reporting bureaus such as Experian or Equifax. You need to keep this mind before you apply.
In terms of your information, Afterpay is a PCI DSS Level 1 certified compliant Service Provider organization. This means that it abides by the comprehensive set of requirements to keep your data secure.
How to sign up for Afterpay
In order to sign up you have to:
- Be at least 18 years old and capable of entering into a legally binding contract (19 in the state of Alabama)
- Have a valid and verifiable email address and mobile number
- Have a credit or debit card
And that’s it! Afterpay is not a store credit application. You don’t have to sign anything or fill out an application form. All you have to do make sure you’ve read the details, signed up online and you’re good to go.
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