I run a shop and accept payments with Square. I recently enabled AfterPay in my dashboard but I have questions.
I looked at the customer agreements on the afterpay website, and the one found here struck to me. It states the following in section 4:
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4.Approval and Cancellation
All purchase order requests are subject to our approval. We may, in our sole discretion, not approve your application, or cancel an approved application before the goods or services are delivered or supplied. If we cancel your previously approved application:
(a) We will apply a full refund of any amounts you have paid (excluding any chargebacks or fees incurred in relation to your payment), and we will cancel any future payments related to that order;
(b)The merchant providing the merchandise will not be obliged to deliver the goods (or provide any related services); and
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Please tell me if I'm understanding things correctly.
1. If I have a male customer that uses AfterPay to pay for an item, I would be paid the full asking price into my square account minus 6% and 30 cents.
2. He must pay ApplePay the full price in 4 divided payments over 8 weeks.
3. If he is on the 7th week and does something bad where AfterPay cancels his account, then they will refund what he has paid.
If I'm correct, then where does AfterPay get their money from to initiate the refund? Does AfterPay contact Square so Square pulls the money out of my account to refund the customer, even if the customer is not eligible for a refund?
And if yes, then I would be out the 6%+30 cents everytime right?
I did ask the AfterPay company about this exact situation and I have yet to hear back from them.
The last thing I want to happen is to offer a service, have someone pay with afterpay, then I provide the service, then several days later, lose the money because the customer's AfterPay account got canceled.
