Afterpay, Clearpay, and Cash App Afterpay 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 Afterpay/Clearpay/Cash App Afterpay?
• Afterpay, Clearpay, Cash App Afterpay 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 Afterpay/Clearpay/Cash App Afterpay?

Afterpay (known as Clearpay in the UK, and Cash App Afterpay in the US) is a BNPL provider that focuses on simple, interest-free installment plans. When clients choose this BNPL option at checkout, they're redirected to Afterpay, Clearpay, or Cash App Afterpay's secure site, where they authorize a payment plan that splits their purchase into four equal payments over six weeks.

Afterpay is known for high approval rates and transparent spending limits that increase gradually as clients build positive payment history with the service. You receive the full payment immediately while Afterpay handles all future payment collection.

📍 Note: The service operates under three brand names depending on location. In Australia, Canada, and New Zealand, it's called "Afterpay." In the United States, it's called Cash App Afterpay. In the United Kingdom, it's called "Clearpay." The functionality and payment terms are identical regardless of the name.

Afterpay, Clearpay, Cash App Afterpay Payment Options

Afterpay/Clearpay/Cash App Afterpay offers a single, streamlined payment option designed for simplicity and accessibility.

Pay in 4

Clients split the purchase into four equal, interest-free installments paid every two weeks (every fortnight). The first payment is due at checkout, with the remaining three payments automatically charged every two weeks.

Payment Schedule:

• Payment 1: Due at checkout (typically 25% of total)
• Payment 2: Two weeks after purchase
• Payment 3: Four weeks after purchase
• Payment 4: Six weeks after purchase

Total Payment Period: Six weeks from purchase to final payment

Monthly Installments (US Only)

For purchases over $100 in the United States, eligible clients may be offered a longer-term payment option with monthly payments over 6 or 12 months. These plans may involve an APR ranging from 0% to 35.99%.

Availability: Subject to client eligibility and purchase amount; automatically presented when applicable. 

✅ Client-Friendly Feature: All payment terms are interest-free when clients pay on time with the standard Pay in 4 option. Afterpay focuses on short-term, manageable payment plans rather than long-term financing.

Timing of Payouts (deposits)

Standard payouts from Afterpay/Clearpay/Cash App Afterpay 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 Afterpay/Clearpay/Cash App Afterpay Transactions

Monitor all Afterpay/Clearpay/Cash App Afterpay 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 Afterpay/Clearpay/Cash App Afterpay transactions.
   

Learn more about Using the Practice Better Payments Dashboard →

Client Experience at Checkout

When your clients choose Afterpay, here's what they experience:

1. At checkout, clients select Afterpay (or Clearpay in the UK) as their payment method.
    
2. Clients are redirected to Afterpay's secure site or mobile app to log in or create an account.
    
3. First-time Afterpay users: Clients create an account by providing:
   • Basic Info: First-time users provide their email, mobile number, and address.
   • Payment Method: They must link a valid debit or credit card (typically Visa or Mastercard; American Express is accepted in some regions).
   • Identity Verification: For higher-value purchases or "Pay Monthly" options, users may now be required to provide a government-issued ID for instant verification.
      
4. Afterpay performs a soft credit check for new accounts and monthly plans. This pulls data from credit reports but does not impact the client's credit score.
    
5. Returning users: Simply log in to their existing Afterpay account.
    
6. Clients review the payment schedule:
   • Standard (Pay in 4): Clients see a schedule of four equal installments.
   • Monthly (US Only): For orders over $100, eligible US clients may choose 3, 6, 12, or 24-month plans.
      
7. Clients confirm the payment plan and make the first installment payment (typically 25% for Pay in 4) due immediately at checkout.
    
8. Clients return to complete the purchase and gain access to your services.
    
9. Afterpay automatically charges the remaining three installments based on the client’s agreed upon schedule.

✅ All Set: First-time users create their Afterpay account during the checkout process with instant approval. There's no need to pre-register or download an app to make a purchase.

Geographic Availability

Afterpay/Clearpay/Cash App Afterpay is available in the US, Canada, Australia, New Zealand and the UK.

Afterpay is available in:

• Canada (excluding Quebec)
• Australia
• New Zealand

Clearpay is available in:

• United Kingdom

Cash App Afterpay is available in:

• United States

Domestic Transactions Only

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

Example: If your Practice Better Payments account is based in the United States, only clients with US billing addresses can use Afterpay. 

⚠️ Important: Afterpay is not available in Quebec, Canada, due to provincial regulations.

Transaction Limits

Afterpay sets minimum and maximum transaction amounts by country and currency. Afterpay only displays as a payment option if the purchase total falls within these minimum and maximum thresholds.

📍 Note on Individual Limits: Even if a transaction is within these ranges, Afterpay may decline an order based on a client's specific "estimated spend" limit. New Afterpay users often start with a lower limit (typically around $600) that increases as they build a positive payment history

New Customer Limitations

First-time Afterpay users may only have one order approved within the first 24 hours of creating their account. This helps Afterpay manage risk while clients establish their payment history.

Processing Fees

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

Afterpay merchant fees are higher than standard credit card fees because Afterpay assumes all risk of client non-payment and pays you the full amount upfront. 

Afterpay, Clearpay, Cash App Afterpay Fees by Account Currency

Afterpay processing fees consist of a fixed fee per transaction plus a variable commission fee. 

Managing Refunds

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

How Afterpay 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 within 3 business days of accepting the return.
    
3. Afterpay Adjusts Client's Plan: Afterpay cancels any future installment payments and refunds any payments the client has already made.
    
4. You Repay Afterpay: The refund amount is deducted from your future Afterpay settlements or debited from your bank account.

Refund Time Limit

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

⚠️ Important: Refunds requested after 120 days must be processed directly with your client using another payment method — Afterpay will not be involved.

Partial Refunds

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

• The client's payment schedule automatically adjusts to reflect the new total
• The adjustment starts with the final payment and works backward
• If the refund amount is larger than 25% of the total order, Afterpay eliminates the fourth installment payment and applies the remaining amount to earlier payments
• Clients continue making payments on the reduced amount

Transaction Fees on Refunds

Afterpay processing fees are non-refundable. When you process a refund, the original transaction fees you paid are not returned to you. Since Afterpay's Pay in 4 option is interest-free, clients don't lose any interest when requesting refunds.

Learn more about Processing Refunds in Practice Better →

Understanding Disputes

Afterpay disputes occur when clients file claims about transactions. Afterpay covers fraud and credit risk on approved orders, but service-related disputes may require your involvement.

Types of Disputes

Payment Fraud (Handled by Afterpay):

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

Afterpay assumes full liability for these disputes. Once Afterpay approves a transaction, you receive and keep your payment regardless of whether the client successfully repays Afterpay.

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 Afterpay (up to 120 calendar days from purchase).
    
2. You're Notified: Stripe notifies you via email, the Stripe Dashboard, and API webhooks (if configured).
    
3. Funds Held: The disputed amount is held back from your Stripe balance until resolution.
    
4. Evidence Submission: You have 14 calendar days to submit evidence through your Stripe Dashboard.
    
5. Afterpay's Decision: Afterpay makes a decision within 30 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; dispute fee applied

Evidence to Provide

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

• Proof of service delivery or access granted
• Tracking confirmation (for physical goods)
• 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

Dispute Fee

If Afterpay/Clearpay/Cash App Afterpay resolves the dispute in the client's favor, you'll be charged a dispute fee:

• US: $15 USD
• Canada: $20 CAD
• UK: £20 GBP
• Australia: $25 AUD
• New Zealand: $25 NZD

💡 Tip: Monitor disputes in your Practice Better Payments Dashboard. Responding quickly with detailed evidence increases your chances of a favorable resolution.

Frequently Asked Questions

What information do clients need to use Afterpay?

Clients provide a valid email address, mobile phone number, and billing/shipping address. They must also link a valid US-issued debit or credit card (or equivalent for other countries). Clients must be at least 18 years old and residents of a supported country.

How long does Afterpay approval take?

Afterpay approval is instant. First-time clients create their account during the checkout process and receive an immediate approval decision. The entire process takes just seconds.

Can clients pay off their Afterpay balance early?

Yes. Clients can make early payments at any time through their Afterpay account with no prepayment penalties. Since the standard Pay in 4 option is interest-free, early payment doesn't save on interest but can free up the client's spending limit and clear the debt sooner.

What happens if my client misses an Afterpay payment?

Afterpay charges a late fee of $8 or 25% of the transaction, whichever is less. Clients have a 10-day grace period before late fees apply, but their account pauses immediately when a payment is missed.

If Afterpay can't collect the payment on the scheduled date, they automatically retry. If the retry fails, the missed payment is added to the next scheduled payment along with the late fee.

Will using Afterpay affect my client's credit score?

Currently, no. Afterpay does not report payment activity to US credit bureaus. Afterpay performs a soft credit check for new customers, which doesn't impact credit scores. However, late payments may affect the client's ability to use Afterpay for future purchases and can result in their account being paused or restricted.

📍 Note: This policy may change in the future. Afterpay has stated they will not report to credit bureaus until they see concrete evidence that BNPL data reflecting responsible payment behavior will help, not hurt, their customers' credit scores.

Can clients have multiple active Afterpay orders?

Yes. Clients can have multiple active orders with Afterpay simultaneously. However, new customers may be limited to one order in the first 24 hours of creating their account. The number of orders and total spending limit depend on the client's payment history with Afterpay.

How does Afterpay determine spending limits?

Afterpay sets personalized spending limits for each client based on:

• Length of time as an Afterpay customer
• Payment history (on-time vs late payments)
• Current outstanding balance
• Overall credit profile

New clients start with lower limits that increase gradually over time as they make on-time payments. The more responsibly clients use Afterpay, the more they can spend.

What payment options will my client see?

Standard Option (All Markets): Pay in 4 interest-free installments over 6 weeks

Extended Option (US Only): For purchases over $400, eligible US clients may also see monthly installment options (6 or 12 months) that may include capped interest charges.

The specific options displayed depend on the purchase amount, the client's location, and their individual approval with Afterpay.

Do clients need to make a down payment?

Yes. The first installment (typically 25% of the total purchase) is due at checkout. For new Afterpay users, this down payment may be required immediately. Clients with established payment history may be able to defer even the first payment by up to two weeks, depending on Afterpay's assessment.

Can international clients use Afterpay?

No. Afterpay only supports domestic transactions. Your client's billing address must be in the same country as your Practice Better Payments account. Clients must have:

• A billing address in the supported country
• A shipping address in the supported country (when applicable)
• A payment method (debit or credit card) issued in that country
• A mobile phone number registered in that country

When do I receive payment from Afterpay transactions?

You receive payment according to a settlement period ranging from 1-5 business days (specified in your merchant agreement). After Afterpay initiates the settlement, funds typically arrive in your bank account via ACH (US/Canada) or BACS (UK) within an additional 1-3 business days.

What's the difference between Afterpay and Clearpay?

There is no functional difference. Afterpay operates under the name "Clearpay" in the United Kingdom to comply with regional branding and regulatory requirements. The payment terms, fee structure, and functionality are identical. The name that displays to your clients depends on their location.

How does Afterpay compare to Klarna and Affirm?

Afterpay focuses on simplicity with a single Pay in 4 option for most markets, while Klarna and Affirm offer multiple payment plan choices. Afterpay is known for:

• High approval rates (approximately 90% average)
• Simple, straightforward terms
• No credit score impact (currently)
• Interest-free standard option

For a complete comparison, visit Offering Buy Now, Pay Later Payment Options →

💡 Need Help? Email payments@practicebetter.io with questions about Afterpay 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 →
• Affirm with Practice Better Payments →