Upfront Summary: Is Afterpay Safe?
Afterpay is safe to use from a technology standpoint. It provides buy now, pay later services to consumers who don’t have enough funds to pay for products outright. Afterpay is only a payment option, so you still need to be wary of which stores products you are purchasing. Afterpay is similar to a credit card company and follows the same strict guidelines and protocols when storing your data and making payments. You should feel safe when making purchases with Afterpay.
Buy Now, Pay Later companies like Afterpay allow you to purchase products from various stores and split your payment in 4. As of March 2021, 56% of Americans have used a buy now, pay later service.
So is Afterpay really safe? Are they going to charge you a lot for this, or could someone use your account to buy products for themselves?
I’m making it easy for you by reviewing the site, checking reviews online, and reporting my findings so you can decide if Afterpay is safe for you.
Afterpay Company Information
| Official Website: | https://www.afterpay.com |
| Founded: | October 2014 |
| Owner: | Public Company |
| Location: | Serving Australia, New Zealand, Canada, USA, United Kingdom |
| Customer Service Contact: | Online: Online Support Phone: +1-833-386-0210 |
| Social Media: | Linkedin, Instagram, Facebook |
What is Afterpay?
Afterpay is a Buy Now and Pay Later service, offering consumers the option of purchasing from a variety of stores and then paying in 4 interest-free installments over time. Afterpay offers its service in Australia, New Zealand, Canada, United Kingdom, and the United States. You can use Afterpay on a store’s website or in-person if you have their app installed on your phone.
Afterpay does not sell or ship anything and does not have a physical store for you to visit. Instead, Afterpay simply acts like a credit card for your purchases with stores that have signed up with them.
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How does Afterpay work?
You can sign up directly with Afterpay and see what stores they work with, or you may find Afterpay as a payment option on a website you’re trying to buy something from.
If you don’t have enough money to buy everything you need from the store right now, but you will later, then Afterpay will make the full payment for you and then charge you 4 payment installments later.
Afterpay acts like your credit card and is fully integrated with any stores that offer their service. You can’t use Afterpay with stores that haven’t signed up with them. There is nothing special you need to do except select it as the payment option when checking out. If you want to make purchases in person with the store, you will need their mobile app installed.
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Is Afterpay safe and legit, or is it a scam?
Afterpay is a legal and certified payment option in the countries it operates. Afterpay has verified any store you purchase from, so scams should not happen. Be aware of which websites you are purchasing from and decide on the actual companies whose product you are buying.
Afterpay does not have any viruses or malware installed and does not steal or sell your data.
There are no reported fake or scam sites related to Afterpay. However, be wary of sites offering Afterpay and ensure they are legit and not trying to access your Afterpay account.
Is Afterpay trustworthy and reliable?
Afterpays overall online reviews are very positive. Customers love the service, find it easy to use, and provides an option for people who are low on funds to get the products they need or want without charging them extra.
There are no reports I can find of legitimate scams or reliability issues from Afterpay. The only issues I found related to people allowing others to use their Afterpay account or wanting Afterpay to be involved in the returns process.
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Afterpay Fees and Costs
Afterpay does not charge consumers up-front fees to use the service or charge interest on your payments. So, for example, if you purchased a product for $36, you pay 4 installments of $9 and nothing else.
If your repayments are late, Afterpay will charge you late fees, which is a maximum of 25% of the product.
Afterpay makes money by charging the business. While they do not have set fees or prices listed online, the information available indicates there is a $0.30c fee per transaction and then a 3%-6% commission on whatever the consumer buys.
Does Afterpay have good customer service?
Online reviews of Afterpay customer service are generally positive. A few reviews indicate online customer service is better than calling them on the phone. Most negative reviews relate to customers wanting customer service to assist where they can’t or shouldn’t. That may be helping with a business that can’t accept Afterpay due to website issues or customers wanting a refund before the business provides a refund to Afterpay.
There are many glowing reviews of Afterpay customer service assisting customers with reasonable requests.
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Does Afterpay have a refund policy or buyer protection?
Because Afterpay does not sell or ship anything, the merchant you purchased from will always process the refund and return. Once you’ve contacted the seller to get a refund, it will be up to them to issue it back to Afterpay, who will then apply it to your Afterpay account.
Afterpay is regulated in the same way as a credit card. Therefore, you do have the right to request refunds for faulty products purchased. However, each merchant that uses Afterpay will have different return policies that you need to follow.
If you have a refund dispute with a merchant and they refuse to refund you, you will need to contact Afterpay customer service to review and assist.
How to delete an Afterpay account?
Afterpay does not offer an automated option to disable or delete your account.
You need to contact Afterpay customer service team via email and request your account be disabled or deleted.
You can find a direct link to request this here.
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The pros and cons of Afterpay
Pros:
- Payments are interest-free and staggered.
- No credit checks are performed, making it an excellent alternative to a credit card.
- Fast and easy to set up and start buying.
Cons:
- Many small purchases can add up to large weekly payments.
- Afterpay has late fees of up to 25% of the purchase price.
- You can’t select the dates you repay, so you may get caught short on the repayment.
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Afterpay Careers
Is Afterpay a good company to work for?
Reviews for Afterpay careers indicate it’s a good tech company to work for. However, the hours worked and the pressure can be pretty high, as you find with many big tech companies. So, if you are comfortable working in that environment, it’s a good company to work for.
Is it difficult to get a job with Afterpay?
Afterpay has many job listings available worldwide, making a career there very accessible to most people. However, the process appears to take up to 6 weeks, so it may not be as fast as you’d like.
Best Afterpay Alternatives
Afterpay and its alternatives make shopping possible when you don’t have enough money right now to buy the things you need. Below is a list of alternatives to use if your favorite store doesn’t offer Afterpay :
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Additional FAQs
Will Afterpay affect my credit score?
Afterpay does not check your credit and does not make updates to your credit score for late payments. Afterpay also doesn’t help you build a better credit score.
What happens if you never pay Afterpay?
Afterpay may initially charge you a late fee, and they will lock your account so that further purchasing is blocked. You can discuss hardship situations with their customer service to extend payments. Ultimately if you don’t pay, you may be sent to a third-party debt collector, which will affect your credit score.
What is the highest Afterpay limit?
Afterpay limits can vary based on how long you’ve been with Afterpay and if you’re always on time with repayments. Your limit will gradually increase, with the maximum documented being $1500 per transaction and $2000 maximum on your account.
Does the Afterpay mobile app allow purchasing from any store?
No, the Afterpay mobile app allows you to pay in-store for your purchases from merchants that have signed up and accept Afterpay. If you try to use Afterpay at stores that aren’t signed up, it will fail, and you will need to use another payment method.
Does Afterpay approve all orders within your spending limit?
You may have a spending limit, but Afterpay must approve every transaction you make. Each transaction is automatically checked and approved or disapproved based on specific criteria. If your payment is denied, Afterpay will return you to the merchant payment screen to try another payment method.