Afterpay is a Sydney based company which started in 2014 with the sole purpose of changing the way people pay for their shopping. The launch of their first product was in 2015, which comprised of a simple interest free instalment plan that is made available to customers either in-store, online, or on mobile.
Their aim is to create payment plans to suit your lifestyle so rather than buying a product for the full price there and then, you can choose to pay via Afterpay which breaks the total price down into 4 equal fortnightly instalments. If you pay on time then you won’t be charged any extra, nor will you have to do boring card applications to use their service.
Since Afterpay’s launch in 2014 the company now has over 600 shops across Australia signed up to its service. The larger names that you may recognise are Surfstitch, Optus, General Pants and Topshop. The service works seamlessly with your online checkout process too; after you find an item that you want to buy from one of the affiliated retailers you simply select the Afterpay option at checkout.
First time customers will have to complete a quick registration form with their relevant details, whilst returning customers can quickly sign in and complete their payment easily. Once you have completed the transaction you will be responsible for paying for that item over four equal fortnightly instalments either manually (which can be done earlier than deadline) or automatically. The best part is that the payments can be taken automatically and all you have to do is select the card (currently only accepting VISA or MasterCard) that you would like the payments to be taken from. If you are a little sceptical, feel secure in knowing that Afterpay will also notify you of when payments are due before taking the money.
If you choose to use the company’s services in-store then things are slightly different. First you must visit their website and sign in. Then you need to choose the amount of money that you plan to spend (you will only be charged the exact amount). Finally when you reach the cashier with your items, rather than pay with your card, simply present the barcode on your Afterpay mobile app for the shop assistant to scan and that’s your payment complete.
If you are thinking about using the service there are a few things you need to be aware of such as, you must live in Australia, be over the age of 18, have a verifiable email and telephone number and use an Australian credit or debit card.
If you fail to pay as per the schedule then Afterpay will attempt to take an automatic payment from the selected card in your account. If the automatic payment fails then you will have until midnight to ensure the money has been sent otherwise you will be susceptible to a late payment fee. The fee that you will incur for late payment is $10, plus a further fee of $7 if the instalment is not paid within 7 days.
Any return will be subject to the retailer’s returns policy and not Afterpay’s so if you do decide to take something back and it is accepted then one company will notify the other. If any instalments have already been paid then Afterpay will refund the credit/debit card used to place that order. All customers will be notified by email regarding refunds and they will be processed immediately, however Afterpay do mention that your bank may take 48 hours longer to refund your card.
If you return something and the retailer takes its time to notify Afterpay then unfortunately you will be responsible for all payments until notification is received. Ideally, ensure that the retailers customer service department is aware they need to contact Afterpay if you do end up returning something.
We would love to hear your experience if any of you have used Afterpay before, please let us know in the comments section below. Thank you.