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Shop now and pay later using Afterpay

Jan 14, 2017 | Reading Time: 3 minutes

Afterpay.  Shop now.  Pay later.  In 4 simple instalments.

What is it?

You may have noticed a payment service named Afterpay whilst shopping recently.  It allows users to make a purchase and receive the good or service immediately, whilst delaying the payment.  Your payment for the purchase is split over four fortnightly instalments. It can be used to make a payment to an increasing range of retailers, for transactions both online and in-store.  No interest is charged and the service is fee-free, provided that you do not miss a payment.  Missed payments will incur late fees.

Who is eligible to use it?

Users have to be aged 18 years or over, living in Australia and to hold either a Visa or MasterCard credit card or a debit card.

How does it work for online purchases?

Select Afterpay as your payment method at check out.  For first time users, you will need to provide the details of your credit or debit card to complete your purchase. The payment service will seek approval from your bank or credit union, a process that takes an average of two minutes.  Once approval has been received, your account is automatically created.  You will then need to visit afterpay.com.au to set up a password.  You will be able to use Afterpay for future purchases by entering your log in details.

As soon as the retailer receives confirmation from Afterpay, they will post your purchase within the same timeframe as any other payment method.  You do not have to wait until your four  payments have been processed.

How does it work for in-store purchases? 

Participating retailers accept Afterpay payments at the register.  You can access your Afterpay account using your smart phone.  Enter the details of the retailer and the cost of your item.  Upon receiving approval from Afterpay, you will be given a unique barcode that can be scanned at the register.  You are then able to take your purchases with you immediately.

I have made a purchase online or in-store using Afterpay.  What happens now?

Afterpay will automatically schedule four equal instalments to be deducted from your nominated credit or debit card.  These payments will be debited fortnightly.

How do I manage my account?

After your order is processed by the store, Afterpay will confirm your payment and send you details about your account, including the dates and sum of scheduled deductions.  You can log on to afterpay.com.au at any time to view your orders, payments and account information.

Will I pay fees or interest when using this service?

Your are not charged a fee to use the payment service, nor will you pay interest to them.  However, if a scheduled payment from your credit and debit card is declined, you will be charged a late payment fee of $10.  An additional fee of $7 will be charged if your payment remains unpaid a week later.

It is very important to note that you may also receive charges from your bank or credit union for missed payments.  You may incur interest charges for credit card transactions.

So if I don’t pay any fees to use the service (provided that my payments are processed on time), how does Afterpay make money?

In addition to charging fees for missed payments, they earn a commission from the retailer for each purchase made using the service.

Which retailers currently accept it as a payment method?

The current list of participating retailers can be found HERE

I am a retailer.  Where can I find out merchant information?

Visit the  website’s merchant section HERE

The Wrap Up

See the full terms and conditions HERE

For more information, visit the Afterpay website HERE or follow on Facebook HERE

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