Afterpay on Ebay next year

[maranock]

I haven't seen this mentioned yet (sorry if someone has).

Aparantly it is confirmed that Ebay Australia and Afterpay have teamed up to start next year: https://au.finance.yahoo.com/news/afterpay-signs-ebay-australia-231321724--spt.html

I won't use it to buy but with the number of people who use the service to buy products on my own website I can guess it will be a winner.

[Anonymous]

AfterPay 'may' work against us.
In my experience outside of ebay ( so far ) the majority of buyers using AfterPay

have been regular customers anyway. Not so bad off ebay but the extra 4-6%

that AP charges will certainly bump ebay running costs. Maybe ebay will get a

discounted rate but only time will tell.

Off ebay we had to go to a Shopify site because no BNPL systems would not plug in

to our old site. All the bells and whistles our old site had 'out of the box' are now

all paid extras 😞

I personally would love to see all BNPL systems burned to the ground as I believe they
are indicators of a souring economy.

With tighter restrictions on credit by major institutions ( which is a good thing ) the door

has opened wide for what are essentially pay day lenders ( which is going to result in a bad thing ). 

[k1ooo-slr-sales]

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@michellebartley wrote:I mean there is no interest to pay on purchases which I think is a pretty good deal.

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michelle, you know more about afterpay than I do. In fact, all I know about it is that it is some kind of instalment payment system.

So my question is this, are there penalties for late or non-payment of an instalment? OR, do they link instalments to PayPal with credit card attached? (where there is interest charged).

You posted earlier that:

I use Afterpay regularly. You have 8 weeks usually to pay an item off. No interest, and if you can't make your regular payment then you can call them and sort something out.

Is there a fee or interest involved when you "sort something out" with them?

What are afterpay's 'normal' remedies when payment can't be made?

Is there a limit to how many times you can "sort something out"?

[Anonymous]

There is no real 'sorting out'. If your payment is late there is a penalty fee.

AfterPay specifically gets almost 25% of it's income from late payment fees.

It's $10.00 if your payment is late and a further $7.00 if it still hasn't been paid

7 days later. Beyond that I am not sure but it's most likely $7.00 every 7 days

until you cough up.

[michellebartley]

If you can't make your regular payment, they will reschedule it as long as you let them know. There is a $6.00 late payment fee if the money isn't in your bank account (which is fair enough) when instalment is due. They take the payment directly from your bank account. I don't think they have a limit to "sort something out". All the details about it are online. There is no interest paid by buyer. The seller pays a service fee to Afterpay.

[k1ooo-slr-sales]

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@michellebartley wrote:
If you can't make your regular payment, they will reschedule it as long as you let them know. There is a $6.00 late payment fee if the money isn't in your bank account (which is fair enough) when instalment is due. They take the payment directly from your bank account. I don't think they have a limit to "sort something out". All the details about it are online. There is no interest paid by buyer. The seller pays a service fee to Afterpay.

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thanks for replying michelle.

I have done some reading since I posted earlier and while it is true there is never interest charged there are fees.

I found this on the Afterpay site:

If you miss a payment you won’t be able to buy or book anything else with Afterpay until you settle your account. And we charge you a capped late fee that starts at $10 but never goes higher than 25% of the purchase price or $68 (whichever is less), to help you stick to your plan.

https://help.afterpay.com/hc/en-au/articles/217425866-How-Does-Afterpay-Work-

So, if you owe as little as $270 and you are late the late fee is $68.  That is around 25% of the total for that late payment . . .  not 25% per annum, 25% of the total for that one late payment.

If you are late on an instalment payment on a $20 outstanding amount the late fee is $10.  If a person can’t make a payment instalment on just a $20 amount how will they cope when a payment is required on $30?  Chances are their debt will spiral . . . which is what posters have be warning against on this thread.

If payment is linked to a bank account, and that bank account goes into overdraft, there may be bank fees as well.

Overall, like most credit, if you make payment on time there are no issues, but if you are late with a payment you may find yourself in a debt trap that is very hard to get out of.

Found this link too:

https://9now.nine.com.au/a-current-affair/a-current-affair-buy-now-pay-later-boom-potential-traps/d9...

[zanadoo_56]

I've just been reading up on Afterpay and it seems that the more things needed to be sorted out, or a customer has to pay late payment fees, the next time they want to use Afterpay it might be refused....or it might not.  At the checkout.  It seems a customer won't know until they try to use it.  That's not a good thing.

My first pay was about what my father put into his superannuation (he thought it was very funny..I wasn't so amused).  It told me that the money I had recevied compared to my old pocketmoney wasn't going to get me very far.  I decided it was better to save at least something every fortnight, and basic living expenses and bills had to come first.  As far as 'nice to have' purchases were concerned, a lot of the time I did without.

Good saving habits have paid off.  Now on eBay I can buy all sorts of stuff I don't really need...without a care in the world.   Hmm.  I wonder if THAT'S really a Good Thing.

[brerrabbit585]

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@k1ooo-slr-sales wrote:

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@michellebartley wrote:
If you can't make your regular payment, they will reschedule it as long as you let them know. There is a $6.00 late payment fee if the money isn't in your bank account (which is fair enough) when instalment is due. They take the payment directly from your bank account. I don't think they have a limit to "sort something out". All the details about it are online. There is no interest paid by buyer. The seller pays a service fee to Afterpay.

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thanks for replying michelle.

I have done some reading since I posted earlier and while it is true there is never interest charged there are fees.

I found this on the Afterpay site:

If you miss a payment you won’t be able to buy or book anything else with Afterpay until you settle your account. And we charge you a capped late fee that starts at $10 but never goes higher than 25% of the purchase price or $68 (whichever is less), to help you stick to your plan.

https://help.afterpay.com/hc/en-au/articles/217425866-How-Does-Afterpay-Work-

So, if you owe as little as $270 and you are late the late fee is $68.  That is around 25% of the total for that late payment . . .  not 25% per annum, 25% of the total for that one late payment.

If you are late on an instalment payment on a $20 outstanding amount the late fee is $10.  If a person can’t make a payment instalment on just a $20 amount how will they cope when a payment is required on $30?  Chances are their debt will spiral . . . which is what posters have be warning against on this thread.

If payment is linked to a bank account, and that bank account goes into overdraft, there may be bank fees as well.

Overall, like most credit, if you make payment on time there are no issues, but if you are late with a payment you may find yourself in a debt trap that is very hard to get out of.

Found this link too:

https://9now.nine.com.au/a-current-affair/a-current-affair-buy-now-pay-later-boom-potential-traps/d9...

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If a person can't afford to pay $25 straight away (quoting Michelle) they definitely shouldn't be using afterpay as there's a good chance they'll never be able to pay for it.  They think 'it's just $25' but if it's so little why can't they save up such a small amount before they buy their items?  If they can't pay that much in one go they're bound to have something else to pay next week that's more important so it won't be long before they're hit with fees.  Anyone who thinks that they're not paying interest is kidding themselves - a 50% fee on a very short term loan is just interest under another name.  But I can fully understand that afterpay would need to charge it, and of course nobody is forced to buy things.