When it comes to Buy Now Pay Later options, merchant fees can eat into your profits if you’re not careful. Here’s a clear look at what Affirm, Afterpay, and Klarna actually cost your business.
Affirm Merchant Fees
Affirm typically charges merchants between 3% to 6% per transaction, plus a flat fee that varies depending on integration agreements. The rate is often negotiated based on your sales volume and risk profile. Affirm promotes itself as a higher-ticket BNPL provider, allowing purchases up to $17,500 in some cases, which attracts merchants selling high-value items. However, the higher purchase approvals often come with higher fees compared to Afterpay or Klarna.
Afterpay Merchant Fees
Afterpay charges merchants around 4% to 6% per transaction, plus a small flat fee. The final rate depends on your agreement. One key difference is Afterpay pays merchants upfront while taking on the repayment risk, making it attractive for cash flow. However, Afterpay’s purchase limits are usually lower, capped around $2,000. For fashion, beauty, and low-ticket e-commerce, Afterpay remains popular despite slightly higher fees compared to standard credit cards.
Klarna Merchant Fees
Klarna’s merchant fees vary widely. Its Pay in 4 or Pay Later options cost around 3% to 5.99%, plus a flat fee per transaction. Klarna also offers financing options, where rates can rise further. Merchants appreciate Klarna’s wide reach in Europe and the US, but its fee structure can be complex. Different products, regions, and risk levels affect your final rate, so reading your contract carefully is really encouraged.
Hidden Costs to Watch Out For
All three BNPL providers:
- Charge refund fees or retain processing fees even if an order is refunded
- May include integration or monthly fees depending on your agreement
- Often require minimum contract terms, especially for negotiated rates
These can impact long-term profitability if your margins are tight.
Which BNPL Has the Lowest Fees Overall?
Generally, Affirm and Klarna have slightly lower base rates compared to Afterpay, but Affirm’s higher-ticket approvals can lead to higher absolute costs. Klarna’s complex structure means you need to check your specific products and regions before deciding. Afterpay remains easy to integrate for smaller purchases despite slightly higher average fees.
Final Takeaway
Choosing between Affirm, Afterpay, and Klarna shouldn’t be about merchant fees. Each provider targets different customer segments and average order values. Review your product pricing, target market, and cash flow needs before picking one. Always read contract terms to avoid surprises later.
FAQ: Affirm vs Afterpay vs Klarna Merchant Fees
Does Affirm charge more for high-ticket purchases?
Yes. Affirm often approves high-ticket purchases up to $17,500, but these approvals come with slightly higher merchant fees compared to typical BNPL purchases.
Does Afterpay pay merchants upfront?
Yes. Afterpay pays merchants at the time of purchase while taking on repayment risks, which helps maintain cash flow for your store.
Are Klarna’s fees the same for every region?
No. Klarna’s fees vary depending on the country, product type, and risk profile. Always check your contract for exact fee structures in your operating regions.
Do any of these BNPL providers charge monthly fees?
Some merchants are charged monthly integration or account fees depending on their agreement with the BNPL provider. Always confirm before signing.
Which BNPL provider is best for high-ticket items?
Affirm is preferred for high-ticket items because it approves higher purchase amounts compared to Afterpay and Klarna.
Chargeblast: Your BNPL Dispute Shield
BNPL disputes are rising as more customers choose instalment payments. Chargeblast helps protect your store by fighting fraudulent BNPL chargebacks before they hit your bottom line. If BNPL disputes are starting to pile up, it might be time to see how Chargeblast can keep your profits secure.
