No Buyer Protection with Afterpay

mhz on 13/03/2025 - 14:53
Last edited 13/03/2025 - 17:43 by 2 other users

Putting this here as a PSA for others who use Afterpay and who believe they may be covered for any issues with a retailer when paying with Afterpay.

I recently purchased an item from Aliexpress. From the moment I received the item, I have had issues with it and after trying to work through them with the seller over a week, I determined the item was faulty and requested a refund. So far the seller and Aliexpress have denied me a refund a number of times.
No problems I thought, I would go back to Afterpay and ask them to dispute it for me. No go!

Afterpay came back to me and point blank told me

We are not able to change the order once it's placed so in the meantime your payment plan remains in place.

Also, please keep in mind that we are unable to process refunds, as this is an action that can only be completed by the merchant."

I pushed back on them to do something as in my view, they are the merchant, the payments were processed by them and I am paying them. They have now stopped further communication with me after I threatened to report them to AFCA.

Just letting those of you who use Afterpay know they have no buyer protection policy and will not help you should you have issues with your purchase the way other companies such as PayPal will.

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Comments

  • Hybroid on 13/03/2025 - 14:58
    +37

    Aliexpress

    That's why. Not an Australian company and there's no local recourse.

    • mhz on 13/03/2025 - 14:59
      +3

      Yet had I paid by PayPal I would be covered

      • Nitrollparty on 13/03/2025 - 15:03
        +28

        well next time use paypal "pay in 4" if you think you'd be covered

        • mhz on 13/03/2025 - 15:10
          +1

          I certainly will be avoiding Afterpay in future

          • cnut on 14/03/2025 - 15:43
            +1

            @mhz: I’m curious, was the item really expensive or why did you have to use Afterpay for it?

    • Dr Phil on 14/03/2025 - 07:56
      -3

      Agree 100%

      AliExpress is the problem.

    • DangerNoodle on 14/03/2025 - 11:56
      +1

      YMMV. With AliExpress, I usually film my unboxings to cover myself. Most of the time it's fine, but on the occasions where I've had to return products, I find it's easier to tick no longer needed. 25% of the time, if the item is cheap, I just get auto refunded and I get to keep the item (annoying since I want to send back the item). The other 75% they'll issue me an auspost label to send the item back to their local warehouses like UCL.

      I have had two times where the unboxing video came in handy since I received the wrong item.

      Again, YMMV, I've returned around 40 items last year, only had issues with 1 and it was refunded anyway.

      • mhz on 14/03/2025 - 12:33

        I've made videos of just about all the troubleshooting I have done with the item and Aliexpress still deny my refund

      • logistics on 15/03/2025 - 20:37

        Received a package recently which was super light. Recorded unboxing as I figured it was empty. Lo and behold it was an empty box.

        Went back and forth with AE multiple times, providing all the evidence but each time the claim was rejected.

        Now it's with PayPal.

      • serpserpserp on 16/03/2025 - 09:57

        So if you have had 100% refund success. Why did you start filming your unboxing? Sounds like you have never had to use them?

        • DangerNoodle on 17/03/2025 - 07:39

          In the couple of cases where I've suspected the item was wrong (first one was just a bit of foam instead of some tubing so it was obvious), I filmed myself unboxing the package and showing the tracking numbers on the labels and everything and flicked it to them to cover myself. Doesn't take too much effort to film the unboxing and it guarantees the refund. Can always delete the video if you need to.

          In cases of wrong item received, AliExpress reviews all the evidence and usually refunds you in a day if you have footage, at least from my experience. Most of the time you can just list no longer needed.

          It is variable what they'll ask you to send back. I assume it's product price vs return cost. I used it as a way to try phone cases and return the ones I don't like, but I ended up with a drawer full of phone cases since they didn't ask me to send some back.

    • kungfuman on 14/03/2025 - 12:15

      yep don't expect refunds or changes to Aliexpress. not an Australian company so you would be screwed.

    • pogichinoy on 14/03/2025 - 17:03

      I buy a lot from Aliexpress and have no issues with chargebacks with my CC company.

  • askbargain on 13/03/2025 - 15:03
    +38

    How is Afterpay the merchant?

    • Jake D on 13/03/2025 - 15:06
      +10

      In his view only

    • reactor-au on 14/03/2025 - 09:58
      +9

      We've been doing it wrong the whole time, we were supposed to return those faulty items from Kmart to anz/commbank/nab/Westpac!

      • serpserpserp on 16/03/2025 - 09:58

        You mean you don't do that? I do it every time! Hasn't worked yet, but I'm sure this is how it is suppose to go.

  • MS Paint on 13/03/2025 - 15:12
    +5

    🎻(afterpay.com)

  • brendanm on 13/03/2025 - 15:19
    +35

    After pay is not the merchant. They are the payment processor. This is on you, I don't think I've ever seen after pay state they provide buyer protection. Also you purchased from AliExpress.

      • brendanm on 13/03/2025 - 15:25
        +12

        Correct, they are not the merchant. The merchant is whoever actually supplied you with the goods.

        I don't think what I was expecting is unrealistic.

        It is. You should never assume, and as I said, they've never said they would provide buyer protection. Just pay in on payment like an adult, using your credit/debit card via PayPal, two layers of protection.

          • freefall101 on 13/03/2025 - 16:00
            +16

            @mhz: Pretty much, yeah. Besides afterpay day where you get a discount for using it there are no benefits and many downsides. High costs on missed payments, fewer credit protections, it's just predatory targeting people with zero cash reserves.

            Get a credit card that at least earns some points, but only do so when you are cash positive (i.e. no short term debts). Then you can bank a whole lot of points. If you're not even living pay cheque to pay cheque then you're just asking for trouble.

            • serpserpserp on 16/03/2025 - 10:00

              @freefall101: Hey, any business that is going to smooth out my cash flow for free is fine by me. It is great.

              • freefall101 on 16/03/2025 - 14:40

                @serpserpserp: If you have irregular income or are a sole trader then sure, makes sense.

                If you have a regular monthly salary and you can't make it the last week until pay day, that's not smoothing out your cashflow, you're just spending future income. You need a budget, not a BNPL provider that offers very little protection.

                • serpserpserp on 16/03/2025 - 18:35

                  @freefall101:

                  If you have a regular monthly salary

                  What about everyone that has this and can budget just fine? Still helps my cash flow. Life isn't just one scenario or the other.

          • brendanm on 13/03/2025 - 16:35
            +4

            @mhz: Basically, yes. If you can't afford it, don't buy it. If you can afford it, buy it. Paying in multiple payments is simply a mental trick that makes you think you are spending less, thus getting people to buy more crap they don't need.

            • Bruceflix on 13/03/2025 - 17:14
              +2

              @brendanm:

              getting people to buy more crap they don't need.

              That is literally the motto of Ozbargain

            • askbargain on 13/03/2025 - 17:21
              -1

              @brendanm: Even if you can afford it, you shouldn’t buy it.

            • mhz on 14/03/2025 - 12:35

              @brendanm: Got it, thanks Mum!

              • brendanm on 15/03/2025 - 08:40
                +1

                @mhz: Someone has to try and teach people not to get themselves in financial distress.

                • mhz on 15/03/2025 - 09:36

                  @brendanm: I'm not sure how all of this puts me in financial distress, but anyway…..

                  • brendanm on 15/03/2025 - 09:41

                    @mhz: If you can't pay for something off AliExpress in one payment, you need to sort out your finances.

          • rumblytangara on 14/03/2025 - 11:36
            +1

            @mhz:

            So anyone who doesn't pay in one payment is not an adult now?

            If someone needs to use Afterpay for Aliexpress purchases, they have some ways to go to reach financial maturity.

            So… yeah. Harsh, but yes.

      • johnno07 on 14/03/2025 - 01:47
        +2

        never heard of any other payment processor that doesn't provide any sort of protection for the customer

        You've never heard of Stripe?

        • paulojr on 15/03/2025 - 15:33
          +1

          likely they've been living under a rock for a few decades or it was a double negative, meaning he's heard of many providers that do?

          PayPal provides pretty decent protection with faster turn around than doing a chargeback via say a credit card issuer in my experience, not fantastic but usually enough that if the seller is a a hole and its clear cut enough they'll reverse the charge for you.

          And yes, very dumb using a payment method that isn't protected with aliexpress, the dispute process is automated so even if they handle the problem if anything is done wrong you can't really sort it out. Got 2 of those usb charging docks recently both faulty but just going in automation loops on their returns system so I'll likely ask paypal to reverse the charges instead.

    • Dr Phil on 14/03/2025 - 07:57
      -2

      Same as any credit card provider

  • jv on 13/03/2025 - 15:36
    +1

    No Buyer Protection with Afterpay

    It's been discussed here before.

  • djkelly69 on 13/03/2025 - 15:45
    +1

    If you pay your Afterpay payments with a credit card, in this situation could you request a chargeback from the CC provider?

    • mhz on 13/03/2025 - 16:04

      Yes I am looking into this at the moment

    • ricadam on 13/03/2025 - 16:19
      +7

      Sounds possible, but then Afterpay may cancel your account.

      • mhz on 14/03/2025 - 12:36
        -1

        At this point I couldn't care less. Afterpay can stick their account where the sun don't shine!

    • brendanm on 13/03/2025 - 16:37
      +2

      As much as I hate afterpay, they have done their job. They were employed to get money from OP, and give it to AliExpress, which they did. What sort of charge back could you do against them?

      • mhz on 14/03/2025 - 12:37

        I could easily request a chargeback through my bank as Afterpay were the ones who took the payment for the goods. We will see what my bank has to say about it.

        • gromit on 14/03/2025 - 14:56

          only if you lie to the bank as the bank would only do a chargeback for fraud or for the provider not rendering the service you paid for, Afterpay have done what they were contracted to do and as such you don't really have a valid cause for a chargeback to them. But hell worth a try I guess/

  • Edeena on 13/03/2025 - 16:19
    +4

    Wait, you can use Afterpay on Aliexpress now?

    • mhz on 13/03/2025 - 16:37
      -1

      Yep, its a recent addition

      • AustriaBargain on 13/03/2025 - 16:42
        -1

        If you couldn't afford it, couldn't you have used PayPal Pay in 4 and benefited from PayPal's protection?

  • godofpizza on 13/03/2025 - 16:27
    -1

    what type of item lead you to believe it faulty and aliexpress not helping with refund?

  • AustriaBargain on 13/03/2025 - 16:41

    I didn't know we could use Afterpay on AliExpress. The rewards for Afterpay suck though so there's no real need to use it over a credit card of PayPal.

  • Typical16-bitEnjoyer on 13/03/2025 - 18:00
    -1

    AliExpress are actually quite good with refunds recently, they need to fight off Temu. Surprised they rejected your return, unless you already returned something else in the same month.

  • dtxau on 13/03/2025 - 18:07
    +7

    OP you buying those $1.99 items and paying with Afterpay? If so, mad respect!

    • McFly on 13/03/2025 - 23:38

      Lol I spent $4 on Afterpay for Doordash because it was my default payment option and I was that much short with my gift card amount.

    • mhz on 14/03/2025 - 12:39
      -2

      Haha, no. The item in question was a lot more than that

  • EFC94 on 13/03/2025 - 18:27

    If it makes you feel any better, I recently had an issue with an item I bought online via Afterpay and the shop processed a full refund and let me keep the item. (Was sent from the UK via the "marketplace" section of the website so returning wasn't worth it apparently).

  • tsunamisurfer on 13/03/2025 - 19:09
    +1

    Have AfterPay even said that they have and will provide Buyer Protection?

  • Wiadro on 13/03/2025 - 19:20

    This is very well known

  • Nillionaire on 13/03/2025 - 19:33
    -4

    I recently purchased an item from Aliexpress

    You don't deserve buyer protection.

    They have now stopped further communication with me after I threatened to report them to AFCA.

    You don't deserve Afterpay. Go back to daddy PayPal.

  • tenpercent on 13/03/2025 - 20:57

    Let us know what the outcome of your AFCA complaint is.

  • Nutrino on 13/03/2025 - 21:14
    -3

    So you used Afterpay for a $10 item… nice….

    • mhz on 14/03/2025 - 12:40

      You realise that not everything on Aliexpress is $10 or under right?

  • Brick Tamland on 13/03/2025 - 21:43
    +3

    Had a similar issue with an USA based store paid with Afterpay. Store refused to ship and also wouldn’t refund. Afterpay refused to help. After lots of grief I got the store to refund via PayPal. Short story, yes Afterpay are useless.

  • Clear on 13/03/2025 - 22:37

    What exactly is the product fault? That and how you speak to customer service plays a big role. Remembering that your messages are translated into Chinese, so simple straight to the point English gets you far.

  • buckerooni on 13/03/2025 - 22:53
    +1

    as a merchant, fk afterpay. they take 6% of every sale.

    • Lichen6420 on 14/03/2025 - 13:08
      +2

      And they take on the credit risk and stump the cash upfront allowing the customer to pay over time.

      If a merchant doesn't like the terms they don't have to offer it as an option.

      • buckerooni on 14/03/2025 - 14:05

        sure, but not allowing merchants to offer a different price if Afterpay is used sucks, even credit cards allow merchants to add the txn costs to a purchase.

        Afterpay did a great job finding a gap in the market and profiting, no doubt.

        • Muppet Detector on 14/03/2025 - 16:37
          +3

          Afterpay replaced a store's need to offer lay buy.

          For some merchants, that's an entire department of people, storage, IT, dealing with seasonal stock, cxl laybuys

    • tenpercent on 15/03/2025 - 13:17

      So I can get cheap stuff from China AND effectively charge them a 6% tariff? And if I'm indirectly invested in Block Inc via index funds or superannuation my investment also benefits?

  • Ooops on 13/03/2025 - 23:33

    Had issues with Aliexpress where item didn't arrive and Aliexpress didn't want to cover it.

    Aliexpress, when I order, if it arrives and it is in good shape, then it's a bonus.

    • McFly on 13/03/2025 - 23:40
      -1

      I've bought quite a few things from them, only had one item not arrive.
      It wasn't worth much but I requested a refund and they gave it straight away.
      Was I just lucky? Or was it because it was cheap?

      • mhz on 14/03/2025 - 12:45
        +1

        Most likely cos it was cheap. A couple of months ago I ordered items value at over $300 from them which didn't turn up and it was shit show to get my money back. I ended up getting my bank to do a chargeback. I'm actually suprised Aliexpress didn't close my account after that

        • Ooops on 14/03/2025 - 23:55

          I did the same.

  • johnno07 on 14/03/2025 - 01:53

    I've easily purchased over a hundred separate items from AliExpress over the years and have only had a few issues. When I have had problems getting a return/refund has been super easy. In saying that I don't normally buy things from there that are >$200 in value, or things that I think I might need hassle free warranty support with down the line. YMMV I guess, but my mileage has been great. Make good choices.

    • john_conner on 14/03/2025 - 09:08

      Same here.
      I’ve returned a few $30 items no issues, with a strong purchase history Ali Express refunds you automatically and pays return postage.

    • Clear on 14/03/2025 - 10:26

      636 orders in the past year and out of those 4 were refunded because the seller couldn't ship in time, 3 lost in transit and one being a fake store who sent something else. I had one product that was a little bit broken (still functional) and my offer of a 50% refund was accepted.

  • Halfpea on 14/03/2025 - 08:10

    I received a chin up bar that had a piece missing a few weeks ago. Afterpay opened a dispute for me 2 weeks ago and told me I could have done it on the app.

    They also told me the seller had 14 days to respond to the dispute, they did not and on Wednesday i got a full refund. They do have a dispute process.

    • mhz on 14/03/2025 - 12:47

      According to them they do not. I contacted their support and the response was basically, tough luck, work it out with Aliexpress

      • Clear on 15/03/2025 - 08:25

        I have contacts at AliExpress. If you want to PM your order number I'm happy to pass it along to see what's gone wrong.

  • rumblytangara on 14/03/2025 - 08:27
    +5

    I pushed back on them to do something as in my view, they are the merchant, the payments were processed by them and I am paying them. They have now stopped further communication with me after I threatened to report them to AFCA.

    WTF definition of "merchant" is this?

    So if you do a bank transfer, the bank does the payment processing and you've paid money into the bank which is then used to transfer to the seller… so the bank is the "merchant"?

    How to people make it past high school with this sort of logic?

    • tenpercent on 15/03/2025 - 13:11
      -1

      How do people make it past highschool with this sort of spelling and grammar?

  • Kiro on 14/03/2025 - 09:35
    -1

    I think there was a thread on ali a while back. I can say they have really picked up their game over the past year or 2 and it is easier to deal with them now.

    After pay is a PITA even if you purchase stuff through a brick and mortar store online etc. I have tried to return stuff and having to deal with returns and refunds through after pay is a PITA really.

    After pay should have some form of accountability when dealing with refunds or processes with merchants as the payment process are direct through after pay and the store(s).

  • cloudy on 14/03/2025 - 09:42
    +1

    Pay with credit card so you have chargeback option, end thread.

    • vchar on 14/03/2025 - 11:49

      I had a similar experience but with Apple Pay but I was able to get all money back as I used my credit card. Bank is not willing to help you if you use other form of payment.

  • fishka2 on 14/03/2025 - 12:45

    Surprised to hear this about AP. Disputed with them few times and they either chargebacked or issued “good will refunds”, so basically footed the bill when couldn’t get money back from the actual merchant.
    As for general discussion, yes bank considers them the merchant because they appear on statement. It’s a bit of a grey area still, so request chargeback and leave it to your bank to decide. Not sure about Ali but AP has a duty of care to you since they must do their due diligence when choosing their partners and before providing their platform.
    My advice is continue to communicate by lodging official dispute, first with AP and then with your bank. If this doesn’t work (which I doubt), then follow up with AFCA and NCAT.

  • johndoe on 14/03/2025 - 12:53
    +2

    Don't use afterpay very much so appreciate the heads up

  • Muppet Detector on 14/03/2025 - 13:16
    +1

    Was everyone aware that PayPal don't offer buyer or seller protection for Gumtree transactions?

    A few other exclusions as well but I'll leave those for someone else to discover and report.

  • Muppet Detector on 14/03/2025 - 13:30

    Google tells me that After Pay do have a dispute resolution process.

  • cnut on 14/03/2025 - 15:42
    +1

    Good PSA. Here’s a better PSA. Don’t use pay later schemes for shit off AliExpress. In fact don’t ever use them at all.

  • trapper on 14/03/2025 - 19:03

    Himm… I've never had a refund denied on Aliexpress

    What was the item and what is the fault?

  • USER DC on 14/03/2025 - 19:05

    Sorry to say this

    But reality is only VISA and MASTERCARD transactions are protected IMO (amex to probably but doubt you used that).

  • drspy00 on 14/03/2025 - 20:02

    Definitely try card provider. I put in a claim with Macquarie debit mastercard last year and was surprised they quickly reimbursed the unauthorised charge charged in a restaurant in the UK, we had the receipt. Didnt think there was any chance. Also reccommend Temu over aliexpress, definitely way better run and more chance of getting money back.

  • paloverde88 on 14/03/2025 - 21:03

    What is an item?

    • McFly on 15/03/2025 - 23:33

      a single object, especially one that is for sale or is bought:
      buy/purchase/select an item
      The business sells items made from recycled waste products.
      order/collect/return an item
      food/household/fashion item
      Supermarkets offer a wide range of food and household items.
      commodity/consumer item
      Manufacturing commodity items is increasingly competitive.
      expensive/valuable/luxury item
      item of equipment/clothing/furniture
      Radios with wooden cabinets have become collector's items.
      individual/particular/specific item
      Sometimes customers who like a particular item of clothing will ask for it at more than one branch of the same store.

  • Randolph Duke on 15/03/2025 - 08:30

    I pushed back on them to do something as in my view, they are the merchant, the payments were processed by them and I am paying them

    Your view is wrong.

  • Kamsi on 15/03/2025 - 21:43

    Afterpay is good when there is no problem with the item your purchase.

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