Accept Payments with Afterpay on Square Online Checkout
Afterpay is a buy now, pay later (BNPL) service that allows customers to pay for online orders in four interest-free payments over six weeks.
Eligible sellers are automatically able to use Afterpay when they create a payment link with Square Online Checkout, allowing customers to select Afterpay as a payment method at checkout. Sellers will receive the full amount upfront. Learn more about how Afterpay works on their website.
Promotional Period
To help you get started with Afterpay, until 29th July 2022, you’ll pay the same transaction fee for Afterpay transactions as you do on all Square Online Checkout orders. There’s no additional setup cost or monthly fee.
Note: Sellers who have custom pricing for online payments lower than the standard transaction fee will get 2.2% (including GST) during this promotion.
After our promotions, Afterpay processing fees will be 6% + 30¢ (excl. GST) across Square Online and In-Person.
Afterpay rates are fixed and do not vary by subscription type, hardware, or custom pricing.
Enable or Disable Afterpay
To enable or disable Afterpay payments on your Square Online Checkout payment links:
From your Account & Settings page, go to Business > Payment Methods.
Under Afterpay, select ••• > Edit settings.
Toggle the Online setting on/off.
Click Save.
When enabled, this option will show Afterpay as a payment method to customers on your Square Online Checkout links. If disabled, customers can’t use Afterpay to check out.
Note: The setting for online payments with Afterpay is global and applies across all Square products that can also take Afterpay payments online. This includes other online platforms such as Square Online and Virtual Terminal. There isn’t a way to disable Afterpay only for Square Online Checkout links at this time.
Eligibility
Eligibility for Afterpay is dependent on several factors, including how your business is structured and what you sell. Here are some notes to keep in mind:
You must be in an approved merchant category.
You must be based in Australia or the United States.
Sellers cannot have multiple Tax Identification Numbers (TINs) or business numbers (such as ABNs).
Restricted digital goods or services are not eligible at this time.
Afterpay will not be an available option if an item cost or cart total is outside of the eligible purchase range. The default ranges in your account are based on what type of business you have.
Custom pricing is not supported at this time.
Cross-border orders are not supported at this time.
Review our Afterpay Merchant Terms for more information on eligibility, merchant categories and more.
FAQ
Until 29 July 2022, you’ll pay an introductory transaction fee of 2.2% (including GST) per Afterpay online transaction. On 30 July 2022, Afterpay online and in-person payments will be 6% + $0.30 (excluding GST) per transaction.
There are no additional charges for your customers to use Afterpay – they make four interest-free payments over six weeks, the first payment being due at time of purchase. You get paid the full amount at time of purchase, minus the processing fee on the total order.
Afterpay is a separate payment option working with Square, and this is the standard Buy Now, Pay Later (BNPL) rate that Afterpay charges merchants. In addition, Square and Afterpay assume BNPL risk on behalf of the merchant together, including chargebacks and fraud.
You’ll get paid the full amount at time of purchase, minus the processing fee on the total order. There are no processing fees charged on the remaining instalments and no other monthly fees or activation costs.
Once Afterpay is enabled in the Payment Methods section from your online Square Dashboard, your customers will see the option to pay in four interest-free instalments with Afterpay on your Square Online Checkout payment links and buy buttons.
Your customers can sign up for an Afterpay account through the Afterpay app. The app is free, and they’ll know instantly if they’re approved. Once customers are ready to pay, they can choose Afterpay as their payment method at checkout.
They will be asked to make the first payment at checkout and pay the rest over six weeks. You will receive the total order amount up front, only the processing fee is deducted. Fraudulent charges and chargebacks are completely covered by Afterpay.
Learn more about how Afterpay works for buyers on their website.
All remaining payments are handled entirely by Afterpay. If your customer is late or misses a payment, it doesn’t affect your business. Find out more about how payments work with Afterpay and the consequences of late or missed payments on the Afterpay website.
Regardless of whether or not your customer has paid the full balance, orders can be refunded from the Order Manager in your online Square Dashboard, just like any other order. The amount will be refunded to the customer on the Afterpay side. Learn more about Afterpay refunds in their support centre.
Note: A refund can only be processed for an Afterpay Online payment taken within 120 days.
Afterpay takes on the risk for the sellers that use it, including chargebacks and fraud. If one of your customers disputes a payment, Afterpay will reach out to you for more information and any documentation on proof of delivery, and a dispute decision will be made.
If the customer wins the dispute, Afterpay covers any dispute losses entirely. At no point are funds held from your Square account.
This may be due to a few reasons:
- Afterpay is toggled off in the Payment Methods section of your Account & Settings.
- The customer’s cart total is outside the eligible purchase range you set up or the Afterpay default purchase ranges.
Eligible purchase range refers to the prices for which Afterpay is available to buyers. There’s an eligible purchase range for order totals and one for individual items. The default ranges in your account are based on what type of business you have.
Not at this time. However, we look forward to introducing more control of Afterpay availability in the future.
Yes. The tipping settings you have in place will appear as normal for Afterpay transactions.
Note: Tips can push cart totals into or out of the order thresholds. Additionally, the Afterpay processing rate applies to the entire sale.
Yes, Afterpay is also available on other products such as Square Online, Virtual Terminal and in-person via Square Point of Sale, Square Appointments, Square for Retail, and Square for Restaurants.
Learn more about accepting payments with Afterpay on other Square products.
Yes, Afterpay offers several marketing resources on their website for you to use and get started. You can also reach out to customers with a free Square Marketing email template to tell them you now offer Afterpay.