Over the years, paying with cards in grocery stores or for other services has become more convenient than using cash. Prepaid cards are used to purchase various items, online or offline. Cards become more helpful when not strapped with the cash needed to purchase. However, not every store accepts prepaid cards despite the convenience they provide. One might ask, does AfterPay accept prepaid cards? In this article, we will find the answer to that question and other questions you might have to circle it.
AfterPay is a company founded in Australia in 2014 by Anthony Eisen and Nick Molnar. They are best known for providing buy now, pay later (BNPL) services all over the website with a very minimal late fee. It is primarily a digital payment platform for online shoppers who needs to delay payments on purchases for any valid reason.
Users can make weekly payments till the total is paid. AfterPay includes online and in-store favorites. You can keep making payments without paying any fees for up to the first four weeks. It is a good option for many people to pay later, but it might be a risky option for people with insecure or low income.
How Does Prepaid Cards Work?
Prepaid cards are similar to debit cards as both are used to make purchases. It works like a gift card as it lets you spend the exact amount of stored money. These cards have a certain amount of money stored, and you can spend it until the card declines, asking you to reload the card. They are considered to be a valuable alternative to using cash and are used primarily by people who do not have access to regular credit or debit cards.
Prepaid cards can be used for making online payments. You can purchase prepaid cards from the grocery or drugstore, but the best decision would be to get them from a bank. They will come with either an option of loading money or a set balance already available on the card. From then on, you can start using the card until the money runs out, which is when you have to reload it.
Does AfterPay Accept Prepaid Cards?
AfterPay lets you use a prepaid card for manual payments by clicking on the “Pay Now” option. Still, they do not let you save prepaid card information as a general payment method. Master and Visa cards issued in the United States are also accepted. They mainly accept bank checking amounts, domestic debit cards, and credit cards. So, to answer that question, AfterPay does not accept prepaid cards.
Why Doesn’t AfterPay Accept Prepaid Cards?
Some big online platforms where you can make transactions do not or usually hesitate to accept prepaid cards because most prepaid cards are not linked with a bank account, other than the exceptions. For which, the platforms are suspicious about the money’s originality and whether the transaction is authentic.
AfterPay lets you pay on a delayed process which is helpful for many people, but some people also misuse this, like trying to skimp on paying in general. So, on top of that existing risk, the company does not want to add another possibility of any money fraudulence, which is why they do not accept prepaid cards.
Which Cards Does AfterPay Accept?
Afterpay accepts many cards. The platform accepts cards such as Mastercard, Amex, or Visa. If you use your credit card to make payments from AfterPay, you will earn reward points with every $1 you spend. However, you must pay off the credit card balance within the designated timeframe to avoid paying any interest charges.
Any Australian debit cards from Mastercard, Visa, or American Express are also accepted. Also, Varo is a debit card payment system that Afterpay accepts. AfterPay does not accept any foreign debit/credit cards or prepaid cards. Do keep in mind that AfterPay will not accept most cards that are issued overseas.
Does AfterPay Affect Credit Scores?
In typical situations, since the Afterpay payment system puts you in debt, you might have to worry about its impact on your current credit score. Although, your credit scores are supposed to stay safe despite how you are using AfterPay to make payments because AfterPay does not report any payment or late payment activities to the credit card bureaus.
Recently, it has been known that credit bureaus are making alterations to the Buy Now Pay Later services to report on the credit usage of customers. So, there is a high possibility that these services, such as AfterPay, may start reporting credit within the near future.
Which Cards Does Not AfterPay Accept?
AfterPay does not accept prepaid cards, even if Mastercard or Visa operates the card. A Netspend card is a prepaid card that Netspend offers, and Mastercard or Visa operates them. Still, they are not linked to a credit or debit account, for which AfterPay does not accept NetSpend cards. PayPal is another platform that AfterPay does not accept. Then there is CashApp, another prepaid card not accepted by AfterPay. In total, AfterPay does not accept cards issued overseas or not issued by the US financial system.
Requirements To Open AfterPay Card
AfterPay has released its system of using an AfterPay Card. The card system lets the user proceed with AfterPay purchases through the app on the digital card. It is for the user’s familiarity, convenience, and privacy. Some people do not want others to know they are paying with AfterPay. However, there are specific requirements for opening an AfterPay card, such as –
- The individual needs to be more or at least 18 years old.
- Individuals should have a valid mobile number and email address.
- Can get into any legally binding contract.
- Has a valid delivery address within the United States.
- The individual has to be authorized to use a US-issued debit card, credit card, or bank checking account.
AfterPay is a helpful service for people who need to pay later. They allow individuals to make small payments for six weeks without charging fees for the first four weeks. If you ask questions such as does AfterPay accept prepaid cards, then the answer is no, they do not. This is due to a series of reasons mentioned in this article.
Frequently Asked Questions
How to load money on prepaid cards?
There are several ways to load your prepaid card. You can direct deposit or transfer from savings or checking account. Some participating retailers also accept cash and pay them, and you can load up the card.
Is AfterPay safe to use?
Afterpay is safer to use than personal loans, credit cards, or payday loans. The late fee is relatively small when compared to the fees applied to credit cards.
Is it possible for me to pay my Afterpay bill with a prepaid Visa card?
Please be aware that we are unable to process payments made by BPAY, bank transfers, or prepaid cards at this time.
Does Afterpay take Netspend as a form of payment?
At the moment, Afterpay can process credit cards and debit cards issued by Mastercard and Visa in the United States. Afterpay does not, for some inexplicable reason, let the use of any prepaid cards or international debit or credit cards.
What if I can’t pay an afterpay instalment?
If you don’t have the cash for an automated payment when it’s due, Afterpay will charge you $8. If the payment isn’t made within a week, $8 will be added to the debt. Late costs can total 25% of the order.
With over 3 years of financial experience, Hannah Edwards is the senior writer for All Finance Deals. She recommends research-based financial information about Transfer Money, Gift Cards and Banking. Hannah also completed graduation in Accounting from Harvard University.