Affirm treats merchant refunds separately from BNPL installment obligations under its dispute policy. Customers must first seek resolution with the merchant. If unresolved, submit a dispute to Affirm, which reviews evidence from both parties and decides in favor of the best-substantiated claim, communicating the outcome within 15 calendar days of evidence collection. Affirm's Dispute Resolution Policy (updated July 2024) does not state that a merchant refund automatically cancels installment obligations, as BNPL creates a separate financing contract.
This applies to U.S. consumers with Affirm-financed purchases (such as Pay in 4 or monthly plans) where a merchant issues a refund but installment payments continue. Affirm's policy controls disputes over financed purchases. Merchants pay a $15 dispute fee if applicable; consumers do not.
What Affirm's Policy Says Controls Disputes
Affirm resolves purchase disputes submitted by customers unable to resolve directly with the merchant. Affirm reviews evidence from both sides and rules for the party best substantiating their claim.
The CFPB's BNPL overview describes BNPL as splitting the purchase into installments after upfront approval, separate from the merchant transaction.
| Aspect | Affirm Policy Detail |
|---|---|
| Submission | After failed merchant contact; via Affirm webform |
| Decision Basis | Best-substantiated claim from evidence |
| Timeline | Outcome within 15 calendar days of evidence collection |
| Merchant Fee | $15 if applicable (consumer not charged) |
What Does NOT Automatically Cancel Your Installments
Affirm's policy does not address automatic installment reversal upon merchant refund. BNPL obligations arise from the separate financing agreement after Affirm funds the merchant.
This differs from credit card billing disputes or other payment rails.
Next Steps: Dispute with Affirm and Gather Evidence
Contact the merchant first to request coordination on the refund and Affirm payments, providing order details and Affirm loan ID.
If unresolved, submit a dispute via Affirm's webform (referenced in the Dispute Resolution Policy). Gather and upload:
- Merchant refund confirmation (receipt, email, transaction ID)
- Order details and communications with merchant
- Screenshots of Affirm account showing payments
- Purchase receipt or invoice
Affirm communicates the outcome within 15 calendar days of evidence collection. If unsatisfied with the result, file a complaint with the CFPB.
FAQ
Does Affirm automatically pause installments during a merchant refund dispute?
Affirm's policy does not address this; submit a dispute to seek resolution.
How long does Affirm take to decide a dispute?
Outcome communicated within 15 calendar days of evidence collection (Affirm policy).
Can I stop payments while disputing?
Policy does not address this; contact Affirm directly for account-specific guidance.
What if Affirm rules for the merchant?
Payments resume per financing terms; escalate via CFPB complaint.