Not at all. Late payments are bad for our business. When you use Afterpay, we pay the retailer upfront and take on the risk. We only do well when you spend responsibly and make your payments on time. That’s why we send reminders, alerts, and pause your account if a payment is missed—to help you stay on track.
How does Afterpay make money?
The simple answer is that Afterpay charges a fee to merchants for each transaction; this is the main way we make money. We also make money from monthly fees paid by Afterpay Plus subscribers, so customers can Afterpay almost anywhere. How do late fees work?
Afterpay caps late fees to help keep costs manageable for customers who miss a payment.
Late fees will never exceed 25% of the order total or $68 per order, whichever is lower. How this works:
- For orders under $40: A one-time late fee of up to 25% of the order total applies.
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For orders of $40 or more: A $10 late fee is charged when a payment is missed. If the outstanding amount remains unpaid after seven days, an additional $7 late fee applies . This is the same for all late payments until the 25% cap or $68 amount is reached. To remain within the cap, we may charge partial amounts of the $10 and $7 fees.
- You can check your General Terms for other late fees caps that may apply.
Does Afterpay target people who are more likely to miss payments?
No. Afterpay is built to support responsible spending. We only want to approve customers who can afford to repay us, because missed payments aren’t good for you—or for us. We’re proud to have some of the best customers in Australia, who consistently pay on time.
If you’re experiencing financial hardship, we’re here to help. Our hardship program is easy to access and designed to support you—just get in touch as soon as you feel you need a hand.