After you return an item to a merchant, your Afterpay payments are adjusted automatically. Here is the timeline and what to expect at each step.
The refund timeline
Refunds go through several steps before they reach you:
| Step | Timeframe |
|---|---|
| You ship the return (or return in-store) | Day 0 |
| Merchant receives and processes the return | 3–10 business days (varies by merchant) |
| Merchant notifies Afterpay of the refund | 1–2 business days after processing |
| Afterpay adjusts your payments | Within 24 hours of merchant notification |
| Refund appears in your bank account (if applicable) | 3–5 business days after Afterpay processes it |
Total typical timeline: 7–17 business days from when you ship the return.
How Afterpay adjusts your payments
When a refund is processed, Afterpay applies it in this order:
- Future payments are reduced or removed first. If you have upcoming payments scheduled, those are adjusted before any money is returned to your bank.
- If all future payments are already covered, the refund goes back to your original payment method.
Example: You bought a $200 item (4 payments of $50). You have paid 2 installments and returned the item.
- Your remaining 2 payments ($100) are canceled.
- The $100 you already paid is refunded to your bank account or card.
Partial returns
If you return some items from a multi-item order:
- Only the value of the returned items is refunded.
- Your remaining payments are recalculated based on the new order total.
- Check your order in the Afterpay app to see the updated payment schedule.
Example: You ordered 3 items totaling $300 (4 payments of $75). You return 1 item worth $90.
- Your new order total is $210.
- Remaining payments are recalculated. The $90 is applied to reduce future installments.
"Refund processed" vs. "refund received"
These mean different things:
- Refund processed: Afterpay has received the refund from the merchant and adjusted your account. You can see this in the app.
- Refund received: The money has arrived in your bank account. This takes an additional 3–5 business days after processing.
Why refund timing differs from original payment timing
Your original payment was charged instantly. Refunds take longer because:
- The merchant must confirm receipt of the returned item.
- Multiple parties are involved (merchant → Afterpay → your bank).
- Banks have their own processing timelines for incoming credits.
When to contact each party
| Contact | When |
|---|---|
| The merchant | It has been more than 10 business days since they received your return and Afterpay has not been notified. |
| Afterpay | The merchant confirms they processed the refund but your Afterpay account does not reflect it after 3 business days. |
| Your bank | Afterpay shows the refund as processed but it has not appeared in your bank account after 5 business days. |