Do sellers get paid in full straight up with afterpay?

[jsdsgn]

Hi all

I have searched online for a while regarding this question, I think I may know the answer but havent found anything in concrete yet and I need to know.

I noticed on my listings that afterpay is offered to potential buyers. Im comfortable with this as long as I get my money straight up.

a) Does 100% of the money go to me straight away and then the buyer pays off afterpay afterwards?

OR

b) Do I have to receive a quarter of the money at the time and potentially send off an item when I havent been paid yet?

Thanks.

[louisas_lines]

Sorry I still don't get it.  Afterpay is a completely different platform to paypal.  

To' receive the payment straight away from afterpay' I would need an Afterpay account set up to receive funds?

What do you think the link is between the buyer using Afterpay and me receiving the money from Paypal?  This is why I though maybe ebay pays to paypal after receiving the money from Afterpay

[louisas_lines]

Pretty sure paypal don't process Afterpay payments

[repentatleisure1952]

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@louisas_lines wrote:

Pretty sure paypal don't process Afterpay payments

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"Pretty sure" you are incorrect.

Why not click on "Help" then type in Afterpay?

[glenbankloel]

We think it's great! Option for the buyer to make interest free purchases over stages. What is not to like as a seller?

Love the fact that we don't have to do anything, just post off as per normal, once funds received, and the payment process is handled by an outside party. Whether via Afterpay or Paypal don't care as long as we receive our funds.

Only thing we would like to know is how our sales have changed. ie how many buyers are using AP to purchase from us. Might be interesting to watch this trend over say 12 months on our stores.

We think the only people going to be upset will be the Credit Card companies- banks etc......as now buyers don't have to use their cards and pay interest, they can pay off interest free in stages. Big kick up the b... for them, ( as long as the buyer stays on track with their payment of course). Could change shopping for ever.

So their "rivers of gold" will be suddenly drying up as more peope use the AP system. Might be interesting to see what they do as a pushback to AP, will they offer an interest free card? or perhaps buy them out? 

Any thoughts?

[glenbankloel]

We would love to know if any one is using AP to purchase, would be interested to watch this trend on our store.

A 12 month period would be good to watch and monitor.

[chameleon54]

I have looked into this quite a bit and my understanding of afterpay is as follows. 

A normal business signs up to accept afterpay and agrees to pay afterpay a small % of the sale price in exchange for the service. ( a couple of % ) 

Buyer purchases an item. Seller receives full price ( minus small % for use of service ) straight away. As far as the seller is concerned that is the conclusion of the process.

Afterpay then seek four equal instalment payments from the buyer, usually through direct debit of bank account, timed as soon as wages or social security payments come in. If the buyer defaults, they have a substantial penalty added to their payment plan. ( often around 50% of purchase price ) If they pay all of this off, no problems, they are still eligible for future afterpay purchases without any further penalty. 

If they fail to pay off the debt, their afterpay use is first restricted, then if further transgressions, cancelled and never reinstated. Most people prioritise paying off the afterpay payments before anything else as they want / need to continue to use the service.

In the case of ebay, I suspect the company has negotiated a reduced commission deal with afterpay which is deducted from regular final value fees. ie. ebay is wearing or absorbing the cost of its buying customers using the service.

As for whether a seller should have a say in it ? If the cost of the service is being paid by ebay and they own the playground, its probably not worth getting in a tiss about. 

[collect247]

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@louisas_lines wrote:

Sorry I still don't get it.  Afterpay is a completely different platform to paypal.  

To' receive the payment straight away from afterpay' I would need an Afterpay account set up to receive funds?

What do you think the link is between the buyer using Afterpay and me receiving the money from Paypal?  This is why I though maybe ebay pays to paypal after receiving the money from Afterpay

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Ebay have offered Afterpay as a payment option if paying with PayPal therefor ebay and PayPal are a merchant if you'd like to Afterpay.

Once a buyer pays with paypal and choose the afterpay option then the seller gets all of the sale payment and the buyer gets to pay it off in 4 fortnightly repayments and as others have stated afterpay does receive commision.

You the seller don't receive the payment from afterpay you receive it from the PayPal account that the buyer has registered with so no need for you to have an afterpay account.

Also as I use afterpay quite alot buyers need to know that they may be charged the first repayment immediately so need to make sure they read the fine print and have the funds available otherwise the purchase may not be processed.?

[louisas_lines]

Crow, I wonder if you have tried using Afterpay on ebay? As I keep saying, I understand that as a seller I get the full payment immediately so I don't want to talk about anymore about whether I have to register as a seller with afterpay etc etc. 

My original question was around the logistics of the process, ie how does the payment get from Afterpay to paying the seller? So I just had a go just to see what it looks like with ebay. 

Just like I thought, paying with Afterpay is exactly like when I've used Afterpay with other retailers.  It's a totally seperate process from paypal, different platform payment, different password etc etc.  There's no record of the payment in my paypal account.

With Afterpay, the payment merchant is eBay.  So it must be that ebay is receiving the Afterpay payments, but is paying the seller the full amount directly to Paypal from the date the initial date of transaction. 

The interesting part is that there is no involvement of paypal from the buyer's end, so there is no paypal 180 day buyer protection.

[repentatleisure1952]

Again...why not click on Help & type  in Afterpay?

You will then see you are mistaken re PayPal & Buyer Protection.

[dontmissthese]

The Afterpay process is seamless enough but wondering how long ebay will keep footing the bill for the AfterPay fee.

It's possible I guess that given the number of potential late fees ( one of AP's major sources of profit ) that they could be giving ebay a free ride.