WASHINGTON, DC (August 12, 2022) – The American Fintech Council has published Policy Standards for its members offering Buy Now Pay Later (“BNPL”) products, as a part of its mission to promote affordable, responsible, and transparent financial products. These standards (also published on the Members section of our website) are below.

BNPL are financial products with 0% interest and repaid in four installments or less; such BNPL is responsible when:

1. It’s deemed a loan, so consumers receive TILA disclosures clearly stating APR.
2. It’s underwritten and ability to repay ascertained.
3. If late fees are applied, they are fully disclosed and do not exceed 36% APR.
4. The business pledges to work with credit bureaus to avoid harming consumer credit scores and improve reporting, since BNPL can appear as multiple trade lines.