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How do refunds or delinquent payments work for Buy Now, Pay Later (via Affirm)?
How do refunds or delinquent payments work for Buy Now, Pay Later (via Affirm)?

Learn more about the process for refunds, canceled events, and delinquent payments when clients pay using Buy Now, Pay Later (via Affirm).

Sierra Burton avatar
Written by Sierra Burton
Updated over a week ago

Refunds or Canceled Events

When it comes to refunding payments made through Buy Now, Pay Later (via Affirm), the process is straightforward. The amount a client can get back is determined by your business's specific refund policy. If a client requests a refund, whether it's a partial or full reimbursement, you can process this through the 'Billing' tab of the project.

Once the refund is processed, clients can expect to see the refund amount reflected on their Affirm loan timeline within 3-10 business days. This means that their balance will be updated to reflect the refunded amount. You can learn more here.

Any refunds to Buy Now, Pay Later payments need to be made within 120 days of payment. If you need to refund a Buy Now, Pay Later payment past 120 days, you can do so by recording an Offline Refund. Learn more here.

Delinquent Payments

Affirm doesn't charge late fees, but if your client's payments are more than 120 days overdue, their loan may be charged off and sent to a third-party collections agency. This charge-off could impact their credit report. Affirm provides advance notice of late payments and impending charge-offs, as well as notifications when a charge-off occurs.

If their loan goes to a third-party collections agency, payments made to the agency may take a day to appear in their Affirm account. However, the charged-off status on their credit history is permanent.

If your client is approaching a charge-off, they can reach out to Affirm for assistance in understanding their options here.

Delinquent payments do not impact the funds you received from the client's Buy Now, Pay Later payment. All transactions are managed by Affirm, or a third-party collections agency, should the client fail to make payments.

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