Do you pay both the after pay fees and square fees on purcheases that are using after pay?

[soapbubbles]

I am trying to find out if someone uses After Pay for purchases do I just pay the After Pay fees or will I also have the Square fees added to it?

[JJ_ · Accepted solution]

Hey there @soapbubbles 

When your customers decide to use Afterpay you will only pay the transaction fee for AfterPay only. 

As you may  or may not know, we are in a promotional period to help our Sellers get started using Afterpay, so here is what the current process is:

Through May 10, 2022, you’ll pay the same 2.9% + 30¢ transaction fee for Afterpay transactions as you do on all Square Online orders (2.6% + 30¢ per transaction if on the Premium plan). 

There’s no additional setup cost or monthly fee.

Note: If you have custom pricing for Square Online lower than the standard transaction fee you will get 2.9% + 30¢ during this promo (2.6% + 30¢ if on the Premium plan).

On May 11, 2022, the transaction fee for Afterpay transactions will be 6% + 30¢.

I hope this information is helpful and if you still have questions we have put together a handy Afterpay FAQ guide to get you up and running

[soapbubbles]

Thank you. Your answer was very helpful.

[mdbodysculpting]

6% is a lot. isnt there a better rate square can negotiate with after pay?

[Arie]

I hear you, @mdbodysculpting. We'll pass this feedback on to our team and hopefully, this rate can be adjusted in the future. 

[GourmetOnWheels]

I cannot offer Afterpay to my customers, being in the food business, my margins are already thin.

6% is way too much even the CEO of Klarna said that in January last year, Afterpay seems to be in the business of price gouging.

The BNPL space is becoming increasingly crowded and competitive, shifting negotiation power into the hands of merchants, and enabling them to encourage BNPL firms to lower the rates charged on purchases facilitated by them. As early as January 2022, Klarna CEO Sebastian Siemiatkowski claimed:

I wish I could convince them to pay 6% but it was a long time ago that I heard any deal quoted at those levels.

 René