How Long Is the Afterpay Grace Period?

Afterpay is a widely used “buy now, pay later” service, allowing consumers to acquire goods and services immediately and spread the cost over time. Understanding its payment schedules and grace periods is important for users to manage their finances effectively and prevent unexpected fees. This guide clarifies Afterpay’s payment system and related policies.

Understanding Afterpay Payments

Afterpay structures purchases into a “pay in four” installment model. The total purchase amount is divided into four equal payments. The first installment is due at the time of purchase.

The three subsequent payments are automatically deducted from the user’s chosen payment method, such as a linked debit or credit card, every two weeks. This bi-weekly schedule extends the repayment period over a total of six weeks. Payments are processed provided sufficient funds are available.

Afterpay’s Grace Period

Afterpay includes a grace period for missed payments before late fees are assessed. This period extends for 10 days past the original due date of an installment. During this 10-day window, no late fees are charged to the user’s account.

Even within this grace period, Afterpay may pause the user’s account immediately upon a missed payment. This action prevents new purchases until the overdue amount is settled. The grace period offers a brief opportunity for users to rectify a payment issue without incurring an immediate financial penalty. If the payment remains outstanding after the 10-day grace period, Afterpay’s late fee policy will apply.

Consequences of Missed Payments

If a payment remains unpaid after the initial grace period, financial consequences and account restrictions will be imposed. Afterpay charges late fees according to a structured policy. For orders under $40, a single late fee is applied, capped at 25% of the total order value.

For purchases of $40 or more, an initial late fee of $10 is charged once the payment is overdue past the grace period. If that payment continues to be unpaid for an additional seven days, a further $7 fee is incurred. The total amount of late fees for any single order is capped at the lesser of 25% of the original purchase price or $68.

Beyond fees, Afterpay will pause the user’s account, preventing new purchases until all overdue amounts are paid. A history of missed payments can lead to a reduced spending limit or, in severe cases, temporary or permanent account suspension. While Afterpay generally does not report to credit bureaus for its standard “pay in four” product, prolonged delinquencies or accounts sent to collections may be reported, potentially impacting your credit score.

Managing Your Afterpay Payments

To avoid late fees and maintain a positive Afterpay account status, proactive payment management is essential. Users should regularly review their payment schedule, accessible through the Afterpay mobile application or website. This provides clear visibility of upcoming due dates and installment amounts.

Setting up automatic payments with a reliable funding source helps ensure installments are paid on time without manual intervention. Afterpay also sends payment reminders to prevent missed deadlines. If an upcoming payment is anticipated to be difficult, Afterpay allows users to reschedule a payment by one week up to three times per year directly within the app. For more significant financial challenges, contacting Afterpay’s customer support team is advisable, as they may offer hardship options or alternative arrangements to help bring the account current.