Affirm with Practice Better Payments

⚠️ Buy Now, Pay Later for Practice Better Payments is currently in an Early Access Program and is not yet available for all users.  

The BNPL methods supported through Practice Better Payments include Klarna, Affirm, and Afterpay, Clearpay, and Cash App Afterpay. 

Review the parent article for an overview and links to each respective payment method article. 

In this article:

• What is Affirm?
• Affirm Payment Options
• Timing of Payouts (deposits)
• Client Experience at Checkout
• Geographic Availability
• Transaction Limits
• Processing Fees
• Managing Refunds
• Understanding Disputes
• Frequently Asked Questions

What is Affirm?

Affirm is a leading BNPL provider in the United States, Canada, and the United Kingdom, known for transparent terms and customer-friendly policies. When clients choose Affirm at checkout, they're redirected to Affirm's secure site, where they see available payment options with clear disclosure of all terms, interest rates (if applicable), and payment schedules upfront.

Affirm uses machine learning to determine the best financing option for each client and purchase, presenting between one and three payment plan options based on the client's credit profile and the purchase amount. As the seller, you receive the full payment upfront while Affirm handles all future payment collection.

Affirm Payment Options

Affirm presents your clients with different payment options depending on the purchase amount and the client's credit history. All terms, including interest rates and payment schedules, are disclosed clearly before clients commit to a plan.

Pay in 30

Clients pay the full amount in a single payment 30 days after the purchase. This option is interest-free with no fees when paid on time.

Availability: Offered to qualifying clients for eligible purchase amounts

Pay in 4

Clients split the purchase into four equal, interest-free installments paid every two weeks over a 6-week term. The first payment is typically due at checkout.

Purchase Range: Available for most eligible purchases, particularly effective for mid-range purchases

Monthly Installments

Clients pay over a longer term ranging from 3 to 36 months with fixed monthly payments. These plans may include interest with rates ranging from 0% to 36% APR, depending on the client's creditworthiness. The exact monthly payment amount, interest rate, and total interest are disclosed upfront before the client agrees to the loan.

Purchase Range: Typically available for larger purchases; clients with stronger credit profiles may qualify for 0% APR promotional financing

📍 Note: Not all clients qualify for all payment options. Affirm evaluates each purchase individually based on the client's credit history, payment history with Affirm, purchase amount, and overall creditworthiness. Clients see only the options they're approved for.

Timing of Payouts (deposits)

Standard payouts from Affirm transactions will be deposited into your business bank account 2-3 business days from the initial transaction date for most countries. However, some banks may take an additional 2-5 business days to show the funds in your balance after Affirm sends them.

Viewing Affirm Transactions

Monitor all Affirm transactions through your Payments Dashboard:

1. In your Practice Better portal, go to Settings > Payments Dashboard.
   
    
2. Go to the Payments & Disputes tab to review your transaction history in detail.
    
3. Filter by Payment method to view all Affirm transactions.
   

Learn more about Using the Practice Better Payments Dashboard →

Business Days Only

Affirm's lending partners only send payments on business days (Monday through Friday, excluding local federal holidays).

• Friday, Saturday, Sunday transactions: Included in Monday's settlement
• Friday-Monday transactions (when Monday is a holiday): Included in Tuesday's settlement

Negative Balances

Payouts only occur when your total balance is positive. If you have a negative balance due to refunds, Affirm nets these amounts against future transactions rather than debiting your bank account. Once new transactions offset the negative balance, settlements resume normally.

Client Experience at Checkout

When your clients choose Affirm, here's the complete process:

1. At checkout, clients select Affirm as their payment method.
    
2. Clients are redirected to Affirm's secure site or modal window.
    
3. First-time Affirm users: Clients enter basic information:
   • Full name
   • Email address
   • Mobile phone number
   • Date of birth
   • Last 4 digits of Social Security Number (for US clients)
      
4. Affirm sends a 6-digit verification code via SMS to confirm the client's identity.
    
5. Affirm evaluates eligibility and presents 1-3 payment plan options with complete terms (typically takes 10-12 seconds).
    
6. Clients review all options, including:
   • Payment schedule (biweekly or monthly)
   • Number of payments
   • Interest rate (if applicable)
   • Total amount to be repaid
      
7. Clients select their preferred payment plan and confirm their choice.
    
8. Returning users: Simply log in and select from available payment options for that purchase.
    
9. Clients return to complete the purchase and gain access to your services.

✅ All Set: Affirm's approval process takes just seconds. The client sees exactly what they'll pay and when, with no hidden fees or surprise charges.

Geographic Availability

Affirm services are only available to residents of the United States, Canada, and the United Kingdom. Your client's residency (not just their payment currency) determines eligibility.

Eligibility Requirements

To use Affirm, clients must:

• Be a resident of the US (including US territories), Canada, or the UK
• Be at least 18 years old (19 in Alabama or if a ward of the state in Nebraska)
• Have a mobile phone number that receives SMS and is registered to the US, Canada, or UK
• Provide their full name, email address, date of birth, and last 4 digits of SSN (or equivalent ID for Canada/UK)

Domestic Transactions Only

Affirm only supports domestic transactions. Your client's billing address must be in the same country as your Practice Better Payments account for Affirm to display as a payment option.

⚠️ Important: The currency a client is paying in does not override the residency requirement. Affirm needs to verify identity and credit history within the specific country's financial system. International clients can't use Affirm even if they attempt to pay in USD, CAD, or GBP.

Transaction Limits

Affirm sets minimum and maximum transaction amounts. If a purchase falls outside these limits, Affirm won't display as a payment option.

Minimum Purchase: $50 USD (or equivalent)

Maximum Purchase: Up to $30,000 USD (or equivalent)

• Affirm finances up to $20,000
• Purchases between $20,000-$30,000 require a down payment from the client at checkout
• The client is responsible for the difference between the financed amount and the purchase total

📍 Note: Individual clients may have lower limits based on their credit history with Affirm and their current outstanding balance. Affirm evaluates each purchase independently to determine the client's approved loan amount.

Down Payment Requirements

For larger purchases or clients who don't qualify for the full loan amount, Affirm may require a down payment at checkout. This requirement and the specific down payment amount are clearly shown to the client before they commit to the purchase. Affirm determines down payment requirements in real-time based on the client’s "purchasing power" check.

Processing Fees

Affirm processing fees are automatically deducted from your payment before funds settle to your Practice Better Payments account.

Affirm Fees by Account Currency

Managing Refunds

When clients request refunds for purchases made with Affirm, you process the refund through your normal system. Affirm then adjusts or cancels the client's loan accordingly.

How Affirm Refunds Work

1. Client Requests Refund: Your client contacts you to request a refund according to your practice's refund policy.
    
2. You Process the Refund: Process the refund through Practice Better or your Stripe Dashboard, just as you would for a credit card refund.
    
3. Affirm Adjusts Client's Loan: Affirm updates the client's payment schedule and refunds any payments already made.
    
4. You Repay Affirm: The refund amount is deducted from your future Affirm settlements. 

Refund Time Limit

You can process Affirm refunds up to 120 days from the original purchase date.

Partial Refunds

Affirm supports partial refunds. When you issue a partial refund:

• Affirm first credits the client's final scheduled payment
• If the refund exceeds the final payment, Affirm applies the remainder to preceding payments
• All other payment terms remain unchanged from the client's original plan

Transaction Fees on Refunds

Affirm does not refund the merchant discount rate or transaction fee. When you process a refund, the original processing fees you paid are not returned to you. Additionally, clients are not refunded any interest they've already paid on interest-bearing loans.

Learn more about Processing Refunds in Practice Better →

Understanding Disputes

Affirm disputes occur when clients file claims about transactions they've made. Affirm handles most disputes internally, but service-related disputes may require your involvement.

Types of Disputes

Payment Fraud (Handled by Affirm):

• Unauthorized transactions
• Account takeover
• Client inability to repay installments

Affirm assumes full liability for these disputes. You receive and keep your payment regardless of the client's ability to repay Affirm.

Service-Related Disputes (May Require Your Involvement):

• Services not delivered or accessible
• Services not as described
• Quality issues with services provided

Dispute Process Timeline

1. Dispute Filed: Client files a dispute with Affirm.
    
2. You're Notified: Stripe notifies you via email, the Stripe Dashboard, and API webhooks (if configured).
    
3. Funds Held: The disputed amount is withheld from your Stripe balance until the resolution is reached.
    
4. Evidence Submission: You have 15 calendar days to submit evidence through your Stripe Dashboard.
    
5. Affirm's Decision: Affirm makes a decision within 15 calendar days of receiving your evidence.
    
6. Resolution:
   • You win: Disputed amount returns to your Stripe balance
   • Client wins: Disputed amount becomes a permanent charge.

📍 Practitioners using Practice Better Payments won’t be charged a dispute fee for Affirm disputes.

Evidence to Provide

Submit compelling evidence that you fulfilled the purchase order, such as:

• Proof of service delivery or access granted
• Email receipts or confirmation messages
• Communication records with the client
• Service description and terms from checkout
• Client's IP address or login records showing service access

💡 Tip: The more detailed your evidence, the better. Include as much information as possible from what the client provided at checkout to strengthen your case.

Frequently Asked Questions

What information do clients need to use Affirm?

Clients provide their full name, email address, mobile phone number, date of birth, and the last 4 digits of their Social Security Number (or equivalent for Canada/UK). Affirm uses this information to verify identity and make instant loan decisions.

How long does Affirm approval take?

Affirm approval takes 10-12 seconds. Clients receive an instant decision showing which payment options they qualify for and the exact terms for each option.

Can clients pay off their Affirm loan early?

Yes. Clients can pay off their entire balance at any time with no prepayment penalties. For interest-bearing loans, early payment saves on interest charges. Clients manage payments through the Affirm app or website, or can enable AutoPay for automatic payments.

What happens if my client misses an Affirm payment?

Affirm does not charge late fees. However, missed payments have consequences:

• Affects the client's ability to use Affirm for future purchases
• May impact the client's credit score (Affirm reports to credit bureaus)
• Loans defaulted for more than 120 days are sent to collections

Affirm sends email and SMS reminders before each payment is due to help clients stay on track.

Will using Affirm affect my client's credit score?

Yes. Affirm reports payment activity to Experian, Equifax, and TransUnion as of April 2025, including Pay in 4 transactions. This means:

• On-time payments: Can help build the client's credit history
• Missed or late payments: Can negatively impact the client's credit score

Affirm performs a soft credit check for most loans, which doesn't impact credit scores. However, the resulting loan and its payment history are reported to credit bureaus.

Can clients have multiple active Affirm loans?

Yes. Clients can have multiple Affirm loans at the same time. Each loan application is evaluated independently based on the client's current financial situation, outstanding balance with Affirm, and credit profile. Some clients may be approved for loans with certain merchants but not others.

Which Affirm payment option will my client see?

Clients see 1-3 payment options based on:

• Purchase amount (cart size)
• Client's credit history
• Client's payment history with Affirm
• Affirm's real-time underwriting assessment

The exact options displayed and their terms (including interest rates) are determined dynamically. All costs, due dates, and interest are disclosed upfront before the client commits.

What determines if my client gets 0% APR financing?

Interest rates range from 0% to 36% APR based on the client's creditworthiness. Clients with stronger credit profiles are more likely to qualify for 0% APR offers. The specific rate assigned to each client is clearly displayed before they accept the loan, ensuring complete transparency.

Do clients need to make a down payment?

Sometimes. For larger purchases or if the client doesn't qualify for the full loan amount, Affirm may require a down payment at checkout. The down payment requirement and exact amount are clearly shown to the client before they commit to the purchase.

Example: An $800 purchase on a 12-month loan might require a $160 down payment, followed by 12 monthly payments at the disclosed interest rate.

Can international clients use Affirm?

No. Affirm is only available to residents of the United States, Canada, and the United Kingdom. Residency is determined by the client's billing address, which must match your Practice Better Payments account country. International clients, even those paying in USD, CAD, or GBP, cannot use Affirm.

When do I receive payment from Affirm transactions?

You receive payment by ACH transfer within 1-3 business days of the transaction. Affirm calculates settlements daily and initiates transfers automatically. Funds typically arrive in your bank account 1-3 business days after Affirm initiates the transfer.

Why are Affirm fees higher than credit card fees?

Affirm assumes all risk for client defaults and handles all payment collection, which justifies the higher fee structure. Many merchants find that increased conversion rates and higher average order values offset the additional processing costs, resulting in greater overall revenue.

Can I advertise that I accept Affirm?

Yes. Advertising Affirm can increase conversion rates and average order values. However, because Affirm is a regulated financial product, your marketing must follow these transparency guidelines:

• Use Approved Branding: Use only official logos and banners from Affirm’s marketing toolkit without altering them.
• Clear Disclosures: Ensure all terms, including interest rates and payment schedules, are clearly disclosed to the client.
• Accurate Language: Use pre-approved messaging, such as "Buy now, pay over time with Affirm" or "Pay in monthly installments."
• Transparent APRs: If mentioning interest, clearly state the range (0% to 36% APR) and note that not all clients will qualify for all options.
• Compliance: Avoid language that suggests "no strings attached"; ensure clients understand they are entering into a loan agreement

💡 Need Help? Email payments@practicebetter.io with questions about Affirm payments. Our team can help you understand fee structures, settlement timing, and dispute resolution specific to your Practice Better Payments account.

Learn more about other BNPL options:

• Offering Buy Now, Pay Later Payment Options (Overview) →
• Klarna with Practice Better Payments →
• Afterpay, Clearpay, and Cash App Afterpay with Practice Better Payments →