Online retailers offering “buy now, pay later” alternative

Online retailers offering “buy now, pay later” alternative

A growing number of online fashion and retail stores in Australia are offering a new lay-by alternative called Afterpay and other similar payment plans.  The payment provider allows customers to purchase products in four equal installments over two weeks, charging late fees for missed payments. Customers who elect to use the service receive their product after the first installment is paid.

Retailers offering Afterpay should ensure that their website Terms and Conditions, Returns Policy and Privacy Policy are reviewed to reflect the use of these services.  This includes making it clear for customers that the Afterpay (or your relevant provider’s) terms and conditions will apply separately to your business, and the fact that late fees may be charged.  This is of particular issue as the Consumer Action Law Centre has questioned Afterpay’s “interest free” claims – it is important when using a new service that you are aware of your liability and comply with your consumer law obligations.

I’ve helped many online retailers review their online contracts and take-pay arrangements including terms and conditions, returns and privacy policies.  If you’re looking to review your online contracts, give me a call on 1300 033 934 or email me at  for a no obligation chat.

Source: News.com.au