The Fraud Codex

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Is Afterpay a Scam?

afterpay.comLegitimate Business
Risk Assessment
20%Risk Score
Low Risk

Summary

Afterpay is a legitimate BNPL service owned by Block, Inc. (NYSE: SQ), same company as Cash App. Interest-free if paid on time.

Afterpay is NOT a scam. Owned by Block. Pay in 4 is interest-free. Late fees capped at 25% of order.

Company Information

Parent Company
Block, Inc.
Founded
2014
Headquarters
Melbourne, Australia
Stock
NYSE: SQ (parent)
Employees
1,500+

Trust Indicators

Concerns

  • Late fees up to $8 per paymentmedium[source]
  • Account paused if payments missedmedium[source]
BBB Rating
A
Trustpilot
1.9/5
BBB Complaints
3,800

💡 Recommendations

  • 1.Set up autopay to avoid late fees
  • 2.Track payment dates carefully
  • 3.Don't open multiple BNPL accounts
  • 4.Only use for planned purchases

📚 Sources

Block - Afterpay AcquisitionAfterpay How It WorksBBB Business ProfileCFPB BNPL Report
Last updated: 2026-01-22

Disclaimer: This analysis is for informational purposes only. Information may be incomplete, outdated, or inaccurate. Our assessments should not be the sole basis for financial, legal, or personal decisions. Always conduct your own research and due diligence.