Overview
In this article, we’ll cover frequently asked questions about Afterpay with Fergus Pay.
Q - What is Afterpay?
Afterpay is a Buy Now, Pay Later payment option that lets your customers pay over time. With Pay in 4, customers split their invoices into 4 interest-free payments over 6 weeks.
Pay Monthly (AU only): From October 2026, eligible Australian customers may also see Afterpay Pay Monthly for invoices of $500 or more. This lets them pay over 6,12 or 24 months. Customers apply for Pay Monthly with Afterpay directly, not through your invoice. Exclusions apply, and when Pay Monthly isn't available, customers can still use Pay in 4.
Q - How does Pay in 4 work?
If Afterpay is enabled on your account:
The customer selects Afterpay when paying an invoice
They are redirected to Afterpay to log in or sign up
Afterpay performs a quick eligibility check
If approved, the customer pays the first installment immediately
The remaining installments are automatically collected by Afterpay
Once the payment is approved, the invoice will be marked as paid in Fergus.
Q - Who can use Afterpay?
Customers must meet Afterpay’s eligibility criteria to use this payment method.
Approval is determined solely by Afterpay. Fergus has no control over:
Approval decisions
Customer eligibility
If a customer is declined, they will need to use another available payment method.
Q - How does Afterpay affect when I get paid?
You receive the full invoice amount upfront through Fergus Pay, just like standard card payments.
Afterpay then collects the remaining instalments directly from your customer.
Q - What are the Pay in 4 payment terms for customers?
Customers typically pay in 4 installments:
1st payment: at the time of purchase
Remaining 3 payments: every 2 weeks
This means the full amount is usually paid over a 6-week period.
Note: In Australia, eligible customers may also be offered Pay Monthyl (6, 12 or 24 months) on invoices of $500 or more.
Q - What happens if a customer misses a payment?
Afterpay manages all customer repayments, including any missed payments or late fees.
Fergus is not involved in collecting installments or handling repayment issues.
Q - What are the Afterpay processing fees and transaction limits?
Afterpay has a different fee structure from standard card payments.
Region | Processing Fee | Transaction Limits |
Australia | 5% + $0.40 | $4,000 AUD |
New Zealand | 5% + $0.40 | $4,000 NZD |
Q - Can I pass the Afterpay fee on to my customer?
Afterpay can only be offered if you choose to cover the payment fee.
You cannot directly pass the Afterpay processing fee on to your customer.
Q - How do I enable or disable Afterpay?
Afterpay can be managed at two levels:
Account level: Turn Afterpay on or off in your Fergus Pay settings to control availability across your account.
Invoice level: Enable or disable Afterpay on individual invoices to control when it’s available to customers.
Conclusion
Afterpay gives your customers more flexibility when paying invoices, while ensuring you still get paid upfront. This can help reduce payment friction, improve cash flow, and increase job acceptance rates.
Pay in 4: Late fees, eligibility criteria and T&Cs apply. Afterpay Australia Pty Ltd Australian Credit Licence 527911.