Buy Now
Pay Later Code
The BNPL providers accredited to this Code are Afterpay, Brighte, Payright, Plenti and ZipCo.
AFIA's BNPL Code of Practice can be found here.
The BNPL Code of Practice came into effect on 1 March 2021.
New laws to regulate BNPL as credit (known as “low cost credit contracts”) commenced in June 2025. The AFIA BNPL Code of Practice will continue to operate until Code members move across to become members of the AFIA Finance Industry Code of Practice. This is expected to occur in the first half of 2026. Customers will continue to have the protections offered by AFIA members under the BNPL Code until it is retired.
Code compliant members
BNPL Code Compliance Committee
Fee Fact Sheet
As part of the Buy Now Pay Later Code of Practice, Code Compliant Members agree to limits on the types and levels of fees they charge their customers.
There are a number of different types of fees that you might be charged:
*Please note that the descriptions as outlined below are intended to provide only a general overview. You should check with your BNPL provider for the exact definitions they use and the fees that apply to you.
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This is a fixed fee that is charged in relation to your account with your BNPL provider. It is charged usually on either a fortnightly or monthly basis and will generally only apply when you have an outstanding balance on your BNPL product or service. You should check with your BNPL provider whether or not this fee will apply when you have no outstanding balance.
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This is a fixed fee that is charged upon establishing each BNPL product or service (you may have multiple BNPL products or services with a single provider). It can also be called an 'upfront fee' and is usually paid either when you receive approval or is paid over the term of your BNPL product or service with your regular repayment.
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This is an administration cost for payment processing and is generally charged per repayment.
There are limits on the total value of the fees that can be charged, depending on how long you have to repay the amount.
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For BNPL products or services that need to be repaid in 62 days or less, fees and charges are not to exceed 5% of the amount of the purchase.
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For BNPL products or services that are repaid on a term longer than 62 days, customers can be charged an upfront fee (e.g. an establishment fee), and also a periodic fee (e.g. a payment processing fee) that is charged for the provision of the BNPL product or service. These are fixed fees that are not to exceed more than $200 AUD in the first year and $125 AUD per year thereafter. You should check with your BNPL provider that the fees they charge are under this cap.
*The fees described in the table above do NOT include late fees. Under the BNPL Code, all late fees must be capped (stopped at a certain limit). Each BNPL Provider determines their own late fee cap.
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These are fees charged for when you do not pay your scheduled repayment on time.
The BNPL Code requires all Code Compliant Members to contact you before charging you a late fee, or if they do not contact you, they will need to waive any late fees charged if you make a catch-up payment within two days of the missed payment.
For example, John forgets to make his $40 repayment to his BNPL provider. He did not receive a reminder from his BNPL provider. He makes the $40 repayment to his BNPL provider the next day. His BNPL provider will now be obliged to waive any late fees charged.
Under the BNPL Code, all Code Compliant Members will need to give you at least 40 business days’ notice before increasing or introducing any new fees. This is double the amount of time required under the current industry standard.
See here for the AFIA BNPL Fact Sheet.
Reporting a breach of the Code
Customers can lodge a complaint with their BNPL provider if they have a dispute about their BNPL account. This includes complaints about repayments, refunds, fees and charges, access to the account, the BNPL provider’s customers service, or anything else related to the operation of the account. The BNPL provider is best placed to assist customers to quickly resolve any issues. However, if they are not satisfied with the outcome or how the BNPL provider handles their complaint, customers can lodge a complaint with the Australian Financial Complaints Authority. AFCA provides consumers and small businesses with free and independent dispute resolution for financial complaints.
Alleged breaches of the Code can be reported to the Code Compliance Committee using the form below or by email to codes@afia.asn.au . The Code Compliance Committee does not provide a dispute resolution service in relation to individual complaints and customers should contact their BNPL provider first to resolve any problems.
Financial difficulty
If you are unable to make your next repayment or are experiencing financial difficulty, it is important you contact your BNPL provider as soon as possible to discuss your options.
As part of the Code of Practice, the BNPL providers commit to treating you with sensitivity, understanding and best industry practice, especially when it comes to the factors that are or could contribute to you being financially vulnerable.
They are also required to have a hardship policy, ensuring you can submit a Hardship Request that is fair and accessible.
If you decide to submit a Hardship Request they will respond to it within 21 days of receiving it and clearly communicate the options available to assist with your situation. And while they are consider your Hardship Request they will freeze any late fees.