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Buy now, pay later · Payment methods

Afterpay and Clearpay for online stores: how pay in 4 works

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Afterpay is a buy now, pay later method that splits an order into four interest-free payments, taken every two weeks. It works in the US, Canada, Australia and New Zealand, and in the UK under the name Clearpay. The store is paid upfront and Afterpay collects the installments, covering losses from fraud or shoppers who can't repay. Sales are domestic only: store and shopper must be in the same country. US shoppers may also see 6- or 12-month plans with interest.

Type
Buy now, pay later; the shopper signs in to Afterpay or Clearpay
Where it works
US, Canada, UK (Clearpay), Australia, New Zealand; store and shopper in the same country
Pay in 4 range
US $1 to $2,000; Canada C$1 to C$2,000; UK £1 to £1,200; Australia A$1 to A$4,000; New Zealand NZ$1 to NZ$4,000
US monthly plans
6 or 12 months with interest, $400 to $4,000
Refunds
Full and partial, within 120 days; up to 10 business days to complete
Disputes
Shopper has 120 days from purchase; you have 14 days to send evidence
Recurring payments
Not supported

What PlatformDTC does

PlatformDTC checkout offers Afterpay (Clearpay in the UK), switched on by default, on one-time orders when the store and shopper are in the same country: US $1 to $2,000, Canada C$1 to C$2,000, Australia A$1 to A$4,000, New Zealand NZ$1 to NZ$4,000, UK £1 to £1,200. Subscriptions: no.

How a shopper pays with Afterpay or Clearpay

The shopper picks Afterpay at checkout and is sent to Afterpay's website, or its app on a phone if installed, to sign in or create an account. They accept the repayment plan and come back to the store; they have 3 hours to finish. Afterpay then takes the four payments directly from the shopper.

Shoppers in Australia, Canada, New Zealand and the US know the brand as Afterpay; in the UK it is Clearpay. On bank and card statements the payments show AFTERPAY with the store's statement descriptor.

What it means for your store: payouts, refunds, disputes

The store is paid immediately and Afterpay collects from the shopper over time. Afterpay covers losses from customer fraud or missed repayments, but Stripe may ask you, on Afterpay's behalf, to stop or pause a shipment before a loss happens.

Refunds must be sent within 120 days of the payment. Afterpay cancels the payments still due and returns what the shopper already paid. A shopper can dispute once, up to 120 days after purchase; Stripe holds the amount, you have 14 days to send proof such as tracking, and Afterpay decides within 30 days.

Who can accept Afterpay

Stripe accounts in Australia, Canada, New Zealand, the UK and the US can accept Afterpay for consumer sales. Afterpay prohibits some categories outright, including alcohol, donations, pre-orders, NFTs and business-to-business sales. Selling across borders is in private preview only.

Frequently asked questions

Is Afterpay interest-free for my customers?
Pay in 4 is four interest-free payments every two weeks. In the US, Afterpay also offers 6- or 12-month installments from $400 to $4,000, and those carry interest.
Can I use Afterpay for a subscription?
No. Stripe lists recurring payments as not supported for Afterpay, and it can't be saved for later charges. PlatformDTC checkout hides it on subscription carts.
Why can't my US store offer Afterpay to UK shoppers?
Afterpay is domestic only in general availability: the shopper must be in the same country as your store. A UK shopper sees Clearpay only on a UK store charging in pounds.

Sources

Related

Payments library