How they differ
- Interest: Afterpay charges none. A credit card charges interest on any balance you don't pay in full by the due date, unless you're on a 0% offer.
- Fees: Afterpay charges late fees if you miss a payment. Many credit cards charge an annual fee and late fees too.
- Limits: Afterpay limits usually start low and rise as you pay on time. A credit card has a set limit from the start.
- Where you can use it: Afterpay works where a store accepts it. A credit card works almost anywhere, including overseas.
- Rewards and protection: some credit cards earn points and come with purchase protection or chargeback rights. Afterpay doesn't earn points.
BNPL is regulated credit
Since 10 June 2025, buy now pay later providers need an Australian credit licence. They must check that a plan suits you before approving it, offer help if you're in hardship, and belong to AFCA, the free complaints service. Your BNPL accounts and repayments can also appear on your credit report.
Which suits you
For a one-off purchase you can repay in six weeks, Afterpay costs nothing if every payment is on time. If you pay your card in full every month, a card can cost nothing too, and may earn rewards.
If you tend to carry a balance or miss payments, both get expensive. A low rate card or a small personal loan can cost less than repeated late fees.