We never charge interest, and we promise there isn’t a catch. Afterpay is a free service, as long as you pay on time. If you do miss a payment, you will incur a late fee, and you won’t be able to buy or book anything else with Afterpay until you settle your account. We will charge you a capped late fee that starts at $10 but never goes higher than 25% of the purchase price or $68 (whichever is less). On a $40 purchase, for example, that means no more than $10 in late fees. But no interest, ever.