Amazon is one of the most popular online retailers.
The large selection of products and the fast shipping times make it one of the most convenient and easiest ways to get the products you need to be delivered right to your door.
If you are planning to shop at Amazon, you may be wondering about the payment options.
Can I Use Afterpay On Amazon?
No, Amazon does not allow the use of Afterpay for purchases made on the website.
There is a loophole, however, that does allow you to still split up your payments with the Afterpay payment options.
Afterpay offers a one-time use credit card that can be used just like a regular credit card to make your purchase.
You will then make weekly or bi-weekly payments on the amount you spent on the card.
Amazon doesn’t recognize this one-time use credit card as anything other than a normal debit or credit card, so it will accept it.
Although the Afterpay payment process is not offered on the Amazon website or at the checkout, this method still allows you to use the Afterpay service and get the products you need without paying a huge upfront cost.
What Is Afterpay?
Afterpay is a service that allows you to buy your items now and pay for them later or over time.
Many different payment services offer similar payment options, but many people prefer to use Afterpay because it’s reputable, safe, and easy.
Afterpay is available as a payment option on many websites.
It makes it possible for you to take an expensive purchase that may require a large dollar amount and break it up into smaller, more manageable payments.
Afterpay is similar to a credit card or any other type of financing, but the terms are different, and there is no annual interest rate.
Instead of building up a balance on a credit card, you have a set amount of time to pay off a set amount of money.
Once you pay it off, your borrowing amount will increase.
Afterpay uses a credit or debit card of your choice to keep on file and to charge the weekly payments automatically.
How Does Afterpay Work?
Afterpay is very simple to use and understand, which is one of the reasons so many people prefer to use it.
To use this service, you first need to set up an account.
To do this, you will need to create an account with your name, address, phone number, date of birth, and a credit or debit card number.
Once the account has been created, you will be given a set spending limit.
This is the amount of money you can spend.
It is based on many factors, and it may be different for everyone who signs up.
You can then visit your favorite store that offers Afterpay and add the products you want to your cart.
You will continue through the checkout process and choose the Afterpay option at the checkout.
If the store does not offer Afterpay, such as with Amazon, you can also use a one-time, virtual credit card number that you can add to the payment field just as you would any other credit or debit card.
This allows the amount to be charged to Afterpay and allows you to use your own credit or debit card to make a payment each time one is due.
In most cases, your Afterpay payment will be due every two weeks.
Your first payment will be 25% of the total purchase price, including tax, fees, and shipping.
Each payment will also be 25% of the purchase price.
You can make the payment each week, or you can choose to make the payment every two weeks.
As long as you make your payments online, you will not owe any extra money, fees, or interest.
The more purchases you make and pay off completely, the sooner your borrowing or spending amount will increase.
Why Doesn’t Amazon Allow The Use Of Afterpay?
Most stores like to offer Afterpay to their customers because it makes their store more appealing.
Customers like to have the option to buy things in payments that they may not be able to afford to pay for all at once.
With Afterpay, there is no need to apply for a credit card or worry about interest fees, but the customer does need to keep up with payments.
Amazon has no real reason to need to partner with Afterpay because it is already a top online store with a huge customer base.
Amazon may also worry about how problems with Afterpay could affect them, even though they are not theirs to sort out in the event of an issue.
Are There Any Restrictions On Afterpay?
Afterpay can be used to make purchases anywhere it is accepted, but there are some restrictions.
You cannot continue to make purchases with Afterpay if you have an open balance or owe money on a previous purchase.
You will not be able to add items to your order or place a second order if you fall behind on your payments.
When it comes time to set up your account, you will be required to provide a credit or debit card.
This cannot be a prepaid card, and it must be in your name.
There are also restrictions that pertain to your spending limit.
You will be given a spending limit when you set up your account.
The only way to increase this spending limit is to pay off the amount you owe or the balance of your first purchase.
Each time you successfully pay off a purchase, your spending limit will increase.
If you fail to make your payment, you will receive a late fee that will also need to be made when you make your next payment.
What Are The Pros And Cons Of Afterpay?
As with any service, Afterpay has its pros and cons.
As long as you use it responsibly and correctly, it can be very helpful.
If you fail to make your payments or get in over your head with it, it could cause some financial problems for you.
Here are the pros and cons of Afterpay
1. Store Integration
One of the best things about Afterpay is that many stores have this service integrated into their websites.
That means all you have to do is choose the Afterpay payment option when you are at the checkout and log into your account.
This is fast and easy and makes it possible to shop at many different stores without having to worry about getting out your debit or credit card.
It’s easy for anyone to use Afterpay at their favorite stores that accept it.
2. Quick Approval
There is no need to worry about a credit check when you use Afterpay.
Even though your information will be considered, you do not have to provide a social security number or any other information that could result in a hard pull on your credit report.
The process is very fast and simple, and you can sign up and be shopping within minutes.
Everyone is given an initial spending limit, and you can increase that spending limit by paying off each purchase on time.
4. No Interest Fees
As long as you use Afterpay responsibly and are able to make your payments on time, there are no interest fees to worry about.
The only fees come if you miss a payment or make the payment late.
Then, a $10 fee will be added to the balance of your purchase.
Many credit cards have very high interest rates, which means it can cost you a lot more to put an item on your credit card rather than using Afterpay to make your purchase.
5. Payment Plans
Afterpay gives you the option to choose from different payment plans.
This allows you to figure out which time frame works best for you, so you know you will be able to make your payments each time without getting stuck with a late fee.
You can choose to make payments on your purchase each week, or you can choose the bi-weekly option that allows you to make a payment every two weeks.
6. Less Debt
If you are struggling with credit card debt, have bad credit, or simply don’t want to pay any interest or put more money on your credit card, Afterpay can be a good alternative.
There is no credit check, and you won’t have to worry about your acceptance affecting your debt to income ratio on your credit report.
You can still make payments on the things you need, but you won’t have to use your credit card.
7. Buying Options
If you don’t have the money to spend on an expensive item but need it and can’t wait to save up for it, Afterpay can be a way to make your purchase now and pay for it later.
It can be helpful if there is an emergency or if you need something quick and want to finance it in the most affordable ways possible.
1. Late Payments
While one late payment may not seem like a problem, if you happen to miss all your payments, it can add $10 to each one that is due.
This can cause you to pay out a significant amount of money towards the cost of your purchase.
In some cases, you may pay more in late fees than you will pay for the actual item you purchased.
2. Store Options
Afterpay is not available at all stores.
Some stores, like Amazon, do not offer the store as a checkout payment option.
There are ways to still use Afterpay services, but if you want to use it the traditional way, you may find that you are limited on the number of options you have to choose from when shopping.
3. Cannot Pick Payment Date
Although you can choose if you want to make your payments every week or every two weeks, you can’t choose specific days for the payment to be made.
It will be automatically taken from the credit or debit card every two weeks or every week.
You also cannot change this date.
If you are not able to make your payment, your card could still be charged.
If the transaction is denied, the late fee will be applied to your account.
If you are paid on certain dates or if you have other expenses and bills that you would like to work around, you cannot change your Afterpay due date.
4. Financial Issues
While Afterpay can be beneficial when used responsibly, it still encourages spending money you don’t have.
If you struggle to make your payments on other bills, it may not be a good idea to go further into debt.
Even though Afterpay may not be the same as a traditional lender, it is still a form of financing, and the payments need to be paid promptly if you want to avoid a fee.
Failing to make your payments or spending more money than you can afford can cause you to have some financial troubles.
5. Spending Limits
Just because you have something in mind that you want to purchase with Afterpay doesn’t mean you will be granted a big enough spending limit to make your purchase.
Many people are so anxious to use their new accounts and take advantage of them that they forget the original purchase they wanted to make and buy something that they don’t necessarily need, just because the spending limit allows them to.
Failing to make payments on time can also make it difficult to increase the spending limit.
Some people also find that even though they are able to pay off several purchases successfully, their spending limit is never increased.
Afterpay appears to be pretty inconsistent with how these spending limits are decided and when they are increased, and this can be frustrating to customers.
How Does Afterpay Work At Amazon?
Afterpay doesn’t work at Amazon the way it works at many other stores that offer it as a payment option.
You cannot simply log in to your Afterpay account to pay for your Amazon purchase.
Instead, you will need to use the virtual credit card option.
You will need to log into your account, choose the one-time-use credit card option and then enter that credit card information into the payment field during checkout at Amazon.
This will still allow you to split up your payments and makes it possible to use Afterpay the same way, but it does make the checkout process a little longer and more complicated.
It also saves the card in your payments on your Amazon account, even though the card will not work if you attempt to use it again.
What Other Forms Of Payment Does Amazon Accept?
Amazon accepts many different forms of payments and is always adding more options to make things easier for their customers.
When you are shopping on Amazon, you can use a credit card, debit card, direct debit from your bank account, and Amazon gift cards.
How Does Afterpay Make Money?
Afterpay makes money with the fees it charges.
While payments are low and easy to afford for most people, some people forget to make their payments or simply fall on hard times and can’t afford to make them.
When this happens, Afterpay adds a $10 fee to each missed payment.
This can really add up over time, and Afterpay counts on people not making their payments on time, so they can make money.
Afterpay is also very appealing to shoppers, so when a store is able to say that it offers Afterpay, it may attract more customers or even a new type of customer base.
Many stores will pay a fee in order to offer Afterpay as an option for shoppers.
Can I Use Klarna On Amazon?
Klarna cannot be used on Amazon in the traditional way, but the same loophole that applies to Afterpay can be done with Klarna.
Klarna offers a ghost credit card that you can enter into your payment field at the Amazon checkout and use to split up your payments.
Can I Use Sezzle On Amazon?
Sezzle does not work with Amazon.
Amazon does offer other payment plans and options that work similarly to Sezzle.
Sezzle is an option when you shop at many other popular online stores.
A Sezzle virtual credit card may be accepted by Amazon if it is added under payment methods in your account.
Sezzle does have fees associated with its use, so be sure to check the fine print before you make a purchase using this card.
Can I Use Affirm On Amazon?
Yes, Amazon has partnered with Affirm to offer financing on certain Amazon products.
With Affirm, you simply choose it as your payment option when you are at the checkout and log into your account.
All your payment and contact information should be provided with your account page, so you never need to fill out any long forms or even provide your credit or payment information when checking out with this option.
Affirm is only available for purchases that are over $50, and you must be approved for the price of the purchase before you can finance it.