how does afterpay work

Afterpay works by allowing customers to buy items and pay for them in four equal installments over six weeks, interest-free. At the time of purchase, the customer pays 25% of the total amount. Afterpay pays the retailer in full upfront. The remaining three payments are automatically deducted from the customer's nominated debit or credit card every two weeks. If payments are made on time, there are no additional fees or interest charged. However, missing a payment can result in a capped late fee, and Afterpay may pause the account until payments are up to date. Users need to create an Afterpay account and can use it both online and in-store at participating retailers. The service does not perform credit checks that affect credit scores but uses a proprietary model to assess eligibility and spending limits, which may increase with a track record of on-time payments.