Introduction to Afterpay Payment Plan Services
An Afterpay payment plan is a secure way to pay for your purchases on line. You are not obliged to pay taxes or outstanding bills with this money. Instead, it is automatically deducted from your account when you complete your purchase. This is a hassle free way of paying for items without incurring any extra costs. There are a few simple steps that you can follow to start your shopping.
To use this service just add all your purchased items to your shopping cart, and then checkout normally as usual. Valid for purchases up to $1500 with either a credit or debit card. If you have made multiple payments already this will be charged one week later on your credit card or debit card. Enter your information with Afterpay and then you are done. The money will be debited from your account on the agreed date. This payment plan is valid for the period up until the due date for the next payment.
There are many advantages to using this payment plan. For example, if an item is not paid for within two weeks, you are given the option to re-do the entire transaction or to pay the full amount within two weeks. The company will charge late fees if the buyer still delays his/her checkout.
A typical setup involves a third party company which acts as a middleman between the customer and the shop owner. The merchant details his/her order value in the personal details’ field on the Afterpay order page, while a reference number is provided by the provider to identify the business. Customers use their debit or credit cards to make the payment. The payment process is completed through the debit or credit cards/debit cards and the details provided by the customer.
The merchant’s Afterpay payment plan charges the customer a flat rate for his/her transactions, regardless of the date of payment. The flat rate does not change during the course of the contract. This means that customers will only pay the same flat rate every two weeks, even if they make subsequent payments. The flat rate may be different from one merchant to another.
There are two methods used to determine the amount. They are known as the minimum spending limit and the maximum spending limit. The first method, the minimum spending limit, applies whenever an additional amount is payable after the set limit has been reached. The second method, the maximum spending limit, applies whenever the total balance payable is higher than the set limit. Each payment period begins at the beginning of the following month, unless the customer specifies a different start date. For example, if you want to start your month with three hundred dollars, you can make payment plan arrangements starting with three hundred dollars.
The merchant has to charge a fee for this facility. You have to check whether your card or debit/credit card is accepted by Afterpay. Some merchants still include the fee in the total order value, because they consider it as service tax. Please note that a payment plan that includes a service fee will probably result in a higher total order value. If you still owe money on a certain account, you will be charged with the service tax.
The fixed afterpay payment plan charges a flat rate based on your scheduled payments and the amount of credit or debit available. This means that your future payments are determined by the amount of available credit and the current outstanding balance. You cannot use this feature if your balance is still unpaid after your scheduled first payment. If your balance becomes zero, the merchant will cancel your afterpay payment plan.