A customer visits your site while a 0% APR promotion is in effect. During checkout, they decide that they would like to finance the purchase with Affirm. Normally, a user is offered the loan with a 10-30% interest rate. However, for qualified applicants offered a 0% APR loan, interest is free to them. Thus, the amount they have in the cart at checkout is the total amount they will pay over time. There are no hidden fees or charges.
This requires a change to the rate schedule listed in your merchant agreement with Affirm. By default the merchant agreement has your flat rate listed for all transactions, regardless of the length of the loan the user selects (i.e. 3, 6, or 12 months). The change is specifically for those users that qualify for, and accept, a 0% APR loan. This will not change the rate you have on your agreement for all standard 10-30% APR loans unless specifically noted. The rate that would be charged on that order would depend on the length of the loan the user selects when offered 0% APR.
If the user selects 3 months, the MDR (transaction fee) is rate X
For 6 months it is rate Y
For 12 months it is rate Z
The Merchant Success Team at Affirm will work with you to get the amendment to your agreement drafted and signed. If you have any questions on the details and rate, they will be happy to assist you, please see "How to get started" below for more information.
Request a 0% financing program
To offer 0% APR financing, please review the steps below. Once you have reviewed and would like to proceed, please email firstname.lastname@example.org
- Live with Affirm for at least 60 days. All 0% promotions are brought to our finance team for review and approval, and they need at least 60 days of data to inform their decision.
- Amended merchant agreement. Your original merchant agreement typically does not account for promotional financing. We will need to draft an amendment to the original contract which outlines 0% APR rates, and this will require signatures from Affirm and the original merchant agreement signee on your end.
- Start and end dates. Provide a start and end date for the promotion, unless you are offering the promotion indefinitely—in which case only a start date is needed.
- Loan term length. Standard loan terms are 3, 6, and 12-months. You are free to choose which options to offer your customers. You may offer all three term options for customers to choose from, or simply offer one or two 0% payment options (i.e. offer 6 months 0% APR only).
- Fallback program. For customers who do not qualify for 0% financing, you can choose either:
- Fallback (typical). Another financing program is offered, such as standard 10-30% APR over 3/6/12 months.
- No fallback (not typical). Decline all of these customers, so they will need to use an alternate, non-Affirm payment method.
- Ensure you meet the requirements listed above.
- Determine the program parameters you'd like to use.
- Request a custom financing program from email@example.com. It take about 10 business days to setup on Affirm's side.
- Implement 0%-specific marketing. Customers will not be aware of this promotion unless you advertise it. Please see the custom promotional messaging article
- Get marketing compliance approval. All marketing materials need to be approved by Affirm prior to going live. For 0% compliance guidelines, please see this article.
Existing Affirm on-site marketing components should be updated to reflect the new APR range. For example: "Pay over 3, 6, 12 months with rates from 10-30% APR" should now read, ""Pay over 3, 6, 12 months with rates from 0-30% APR"
Update your promotional messaging
- Affirm Merchant Success will setup a new 'promo ID' to use that has your zero-percent financing program enabled, so your promotional messaging will reflect the correct APR range.
Affirm takes compliance very seriously and it is enhanced when it comes to 0% financing since there are multiple decision scenarios customers will receive. It is important to follow these guidelines when doing a 0% promotion. These guidelines are below and must be disclosed on all 0% promotions.
Disclosures must be clear and conspicuous and should be within clear view of the promotional text
Text cannot mislead customer about terms, approvals and duration of promotion
When displaying any number, corresponding terms must be displayed as well
Example: Showing "as low as $50/month" means you must disclose the price, APR %, and month loan terms to arrive at that calculation
Example: Showing “loans at 3, 6, or 12 month terms” means you must disclose the APR % - 0-30% for zero percent financing.
Must Include "APR"
The abbreviation "APR" must be included when an interest rate is shown. This allows consumers to compare APR across products from different institutions.
Example: 0% APR Financing with Affirm Available
Must Include Disclosure: Not All Customers will Qualify for 0% Financing
Due to credit requirements, not all of your customers will qualify for 0% financing.
Example: 0% APR financing eligibility subject to applicant's creditworthiness.
Example: Split your purchase into 3, 6, or 12 monthly payments with rates from 10-30% APR. Certain customers may qualify for 0% APR.
Example: 0% APR financing available, not all applicants will qualify
Must Include Disclosure: What happens to those that do not qualify for 0% financing?
For a customer that does not qualify for 0% financing, the merchant has two options when setting up a 0% promotion: (1) Full decline, customer needs to choose a different payment method (2) Declined customer is offered 3, 6 or 12 month loans at 10-30% APR if they qualify. See the getting started guide on 0% for more information.
Naturally, most merchants will select option #2 - this means that customers can receive traditional loans over 3, 6 or 12 months at 10-30% APR. This must be disclosed.
Example: Applicants that do not qualify for 0% APR financing will be evaluated for loans with 3, 6 or 12 monthly installments at rates from 10-30% APR based on creditworthiness.
Must Include Disclosure: Timeframe of the Promotion
Merchants must disclose how long a promotion lasts if it is end dated.
Example: Previous purchases are ineligible for offer. Offer Available from April 1st, 2016 to April 27th, 2016. Offer is subject to change at any time.
Must Include Disclosure: Member FDIC
Merchants must disclose where these loans are being made from.
Example: Affirm loans made by Cross River Bank, member FDIC