How to Cancel Afterpay Orders With DoNotPay

Stumbled across Afterpay? Afterpay is a neat new company that helps consumers make the purchases they want from their preferred retailers and pay in installments after receiving the merchandise.

Afterpay can be a great option for folks with a stable but irregular income, like entrepreneurs. And it can help those temporarily struggling a bit to cover needed purchases, like school clothes for the kids.

But what happens when you need to cancel an Afterpay order? Is it as easy to get your money back using Afterpay as it is to spend it?

More About Afterpay

Maybe you're not familiar with Afterpay beyond the occasional display ad. Or perhaps you've used them once or twice but know very little about the company.

Founded in Australia in 2014, Afterpay is an app-based financial services company that operates in the U.S., Canada, the U.K., and New Zealand. Afterpay attracts consumers with its app that allows them to make purchases they must later pay off in four equal interest-free installments, along with a 4.19% processing fee. If they don't make these payments, they are assessed late fees, which, along with processing fees, are how Afterpay makes money.

Afterpay works with many leading retailers, including:

• David Jones
• eBay
• Foot Locker
• Kmart
• Sephora
• Target

They also work with dozens of smaller specialty retailers, allowing you to buy everything from home decor to designer eyeglasses to salon treatments. Regardless of these features, some customers still want to learn how to cancel an Afterpay order.

Can Afterpay Hurt My Credit?

When you sign up for Afterpay, you're not signing up for a traditional credit card per se. Essentially, Afterpay makes the purchases for you, but unlike a typical credit card, they aren't reporting your payment history to the three major credit bureaus. If you default on your payment agreement, Afterpay will charge you late fees, which is one of the ways they make money.

Afterpay does not currently sell any portion of its debt portfolio to collection agencies. If it did, defaulted debt would likely be reported to credit bureaus. Further, when you apply for Afterpay, the company does not pull your credit score; otherwise, the resulting credit inquiry might decrease your score by a couple of points. So, in many ways, Afterpay may be a good alternative to credit card use.

However, Afterpay payments will be automatically deducted from your account. If you don't have the money to pay, you could get hit with substantial bank overdraft fees and non-sufficient funds (NSF) fees. If you resolve them quickly, your credit score won't take a hit.

But if the debt resulting from your negative balance is sent to collections, your score will fall. Further, if you overdraw your account trying to make Afterpay payments, you may miss other credit payments, which can also hurt your credit score.

Also, many consumers don't know that banks maintain a consumer rating system based on their use of banking products. Overdraft and NSF fees will hurt your banking system score and can make you ineligible to open a new bank account.

Who Should Use Afterpay?

Afterpay has found a receptive audience among the cash-strapped Millennial set. However, to avoid potential damaging financial outcomes, you should only use Afterpay if:

• You have a stable source of income.
• You budget your paycheck and have more than enough to cover your Afterpay payments and other expenses.
• You have some money in an emergency savings account.
• You aren't using Afterpay to spend more than you make each month.

If you don't meet these criteria and aren't willing or able to get a second source of income, you should cancel any outstanding Afterpay orders now.

How Do I Cancel Afterpay Orders

Whether you're looking to cancel Afterpay orders you realize you can't afford or merchandise you don't want, Afterpay touts a fairly straightforward cancellation and refund process. Seemingly, all you need to do is return the merchandise to the store, according to the merchant's return policy.

If you return the merchandise in the store, you'll also need to:

1. Log in to the app
2. Navigate to the Returning In-Store option found under Return Order in the payments view.
3. Tap the payment button
4. Hold your phone by the card reader to initiate the return.

But whether you've returned in-store or mailed the merchandise back, you're still subject to the merchant's return policy. Canceling an Afterpay has little to do with Afterpay itself.

You'll still be wrestling with the merchant to cancel your order and get your money back, which can be a hassle, depending on the merchant. And AfterPay adds an extra step for both you and the merchant, making things even more difficult.

The easiest way to cancel Afterpay orders is to let us handle them. When you use DoNotPay, you need to follow a few simple steps.

1. Search for the Cancel Anything product on DoNotPay.

2. Enter the name of the company you need to cancel your order/payment with.

3. Answer a few questions about whatever you need to cancel so that we can compose a cancellation letter.

We can help you handle your Afterpay cancellations in three easy steps and make sure you get your money back as quickly as possible.

Why You Should Use DoNotPay Rather Than Cancel Directly

We know how much of a hassle cancellations can be. And even if an app like Afterpay doesn't inadvertently hurt your credit, third-party financial apps and payment apps.

Aside from Afterpay, we can also assist you with the following inquiries:

Sign up for DoNotPay today and make order cancellations a cinch.