Third-Party
A few shops at the moment are offering Afterpay. Has anyone used this option. And were there any complications,
Afterpay
jodie1980 on 05/07/2017 - 19:00
Last edited 05/07/2017 - 19:06 by 1 other user
Last edited 05/07/2017 - 19:06 by 1 other user
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There is no interest provided the amount is paid off over the four instalments. The retailer bears the cost which is ~2%. After Pay take on all the credit risk. It is aimed at people who don't have credit cards.
I can't help but think that if the banks won't give you a credit card that you shouldn't be spending that money. There is no advantage to the buyer with this. You even loose all the protections that credit cards offer.
People probably said the same about using credit cards when they first launched
I've never used afterpay but seems it's fine so long as you meet your payment obligations. It's just another payment gateway for retailers to help increase sales just like Certegy ezipay, flexirent or interest free
I don't have a credit card, haven't had one in years, not because the bank won't give me one 🙄
I probably won't use After Pay for the same reason, if I can't afford to pay for something I don't buy it .
You need a credit card to use after pay. 😀
debit card is also fine. doesn't need to be credit card
You are wrong! The merchant fee is 6% + $0.30 each transaction, excludes GST. The total cost for the retailers is ~ 6.5%
Also, AfterPay doesn't refund the fee if the transaction is refunded or cancelled, so there is an out of pocket fee if the customer returns the goods for a refund.
You can actually use a credit card to pay on Afterpay.
I think the only benefit if you use it the right way is that you can afford to buy something earlier and repay the full amount later (up to 2 months). They are banking on that you end up buying more because of this.
It doesn't mean you can afford it though, does it? You can obtain it even if you can't afford it.
Depends on how strict the definition of "afford". If you have only $100 and the item is $100, you can afford it in the sense that you can buy it straightaway OR you can't afford it because you need to spend that $100 on other needs eg. food/rent.
In the context of my comment, I meant that if money is a bit tight and you can only pay like a quarter of the amount without compromising your needs but you know you're getting paid the week after so you can afford to spend 25% now and 75% later.
I'm not saying this is how you should live but it does give you the option and it could be a good one if used wisely.
I have used it last month. Just wanted to try it hence used it for a small purchase of $106 from Myer. Problematic only if you miss your payments. $26.50 first time and every fortnight thereafter for 6 weeks pretty straightforward.
**Put reminders in your phone to go online and pay everytime ontime its not auto debit (that's the catch)I thought they just deducted the amount from your bank when its due. ? Does this not happen. Do I have to go online and pay. For what I read I thought I didn't have to do anything further. Just make sure the money in my account for them to take a payment. ?
I paid most of mine manually but did have a couple of payments go through automatically. That said, for most business when they say a payment is due on a certain day they take the money overnight but AfterPay took the money the morning of that day.
Ahhh, you would think it's direct debit. Sneaky.
The only complication I've had so far is I went to place an order through Myer last week and the AfterPay order was created but the Myer order didn't go through.
I had contacted AfterPay and they can't do anything about it.
I had contacted Myer and they said a refund was being processed but the AfterPay order hasn't been cancelled yet, so I may need to contact them again.Late Payment Fee: $10 Late Payment Fee if a payment is due from you but not received by Afterpay in accordance with the Payment Schedule, with a further $7 Late Payment Fee added seven days after the payment is due if the payment is still unpaid.
Other fees or charges: NilFrom their pds.
I believe afterpay is great for businesses as it makes customers part with their money easier.i mean instead of paying 200 now you only pay 50 every few weeks.
As a consumer that's great. Just be careful you don't fall into the trap.
As a consumer that's great.
No it isn't, you literally just said in the previous sentence that it makes people spend money where they would not have before so it's advantageous for the business.
So you're suggesting that being manipulated into losing money is great.
No. If you are smart,then you can get what you want earlier instead of saving up for the whole amount. What happens next is a different story.
Don't mix and add words. Read things twice if you have to.
There is no logical reason for a retailer to give up a commission to Afterpay unless the consumer spends more than they would have otherwise. This is exactly what happens because Afterpay makes that claim in its financial reports: Veronika Maine (average order value up 25%), General Pants Co (average order value up 20%), Cue (average order value up 24%)… etc. Interesting strategy given household debt is already at record levels, Afterpay takes on the risk of default, and we have not had a major economic downturn for a decade.
I guess its on afterpay's back - but offering credit to people who might not otherwise afford it and displaying the lower "6 easy payments of $…." so prominently has gotten my teen brother in a bit of trouble. Luckily he can't get into too much trouble as he doesn't have a credit card, but he just started his first casual after-school job and went a bit nuts with the online shopping, and ended up with bigger and bigger afterpay payments due, until he struggled to get enough shifts to cover all his afterpay debts - He's paid it all off now AFAIK, so hopefully it was a good early lesson in how credit and debt can quickly spiral out of control, especially on a sporadic income. Also, I think it's a bit idiotic to lend that much money to 15 yr olds. Like thefreelunch commented above, Afterpay is taking on the risk of default and I guess they've calculated it's worth it to them?
www.afterpay.com.au
I can only imagine how ridiculous the interest rates are. Why not just use a credit card? Assuming you intend to pay on time.