Affirm Loan Repayment: What Happens When Returning Purchases?

If you've taken out an Affirm loan to pay for a purchase and then return the item, you may be wondering what happens to the loan. In most cases, you will still be responsible for paying off the loan, even if you return the item. However, the specifics depend on whether this is your first Affirm purchase, whether the loan has been captured, and whether you are returning the entire order or only part of it.

Cancelling an Affirm loan

If you need to cancel an Affirm loan, the outcome will depend on whether the loan has been captured and registered as an official loan transaction. If it has, Affirm states that it won't be possible to cancel or void the loan, and the loan terms can't be changed or updated. An Affirm fee will be charged for this service.

To cancel a loan without incurring a fee, the loan must be voided in the authorization stage of the transaction so that it is not captured and registered as an official loan. Once a loan has been captured, it is considered 'official' and active, and Affirm won't be able to cancel or void it.

If you are a first-time Affirm user and you return an item, your balance will be cancelled. If you've made purchases before and the return refund exceeds your current loan balance, your balance will be cancelled, and you will receive the difference back via your original payment method. If the return refund is less than your loan balance, you'll see a reduction in monthly payments, a smaller final payment, or both.

Note that Affirm favours the seller by default. They pay the seller the full amount within 2-3 days, so if you cancel, the seller would have to pay back the money to Affirm. This is why it is challenging to get out of an Affirm loan once it has been captured.

Affirm refunds

If you've made a purchase using Affirm and need to return it, the outcome of your refund depends on whether or not this is your first Affirm purchase, and whether the return refund is more or less than your current loan balance. If it is your first Affirm purchase, you'll see the balance cancel altogether. If you've made purchases before and the return refund is more than your current loan balance, your balance will be cancelled and you will receive the difference back via your original payment method. If the refund is less than your loan balance, you'll see fewer monthly payments, a smaller final payment, or both.

Loans must be voided in the authorization stage of the transaction to avoid an Affirm fee. Once a loan is captured, it becomes an "official" or active loan, and it won't be possible to cancel or void it without a fee.

Return refund more than loan balance

If you've made purchases before and the return refund is more than your current loan balance, your loan balance will be cancelled, and you will receive the difference back to your payment method. This is only applicable if it is your first Affirm purchase; in that case, you will see the balance cancel altogether.

If the return refund is less than your loan balance, you will see fewer monthly payments, a smaller final payment, or both.

Affirm treats returns the same way as any other payment method. You can start the return process here, as long as you are within the 30-day window.

If you want to cancel a loan without paying a fee, the loan must be voided in the authorization stage of the transaction. Once a loan is captured, it becomes an "official" or active loan, and it won't be possible to cancel or void it.

Return refund less than loan balance

If your return refund is less than your loan balance, you will still have to pay off your loan. However, you will see fewer monthly payments, a smaller final payment, or both. Interest is the only cost of borrowing with Affirm, so your refund amount will be minus the interest you've already paid. You can check if you've been refunded by signing in to your Affirm account, going to "Manage", selecting your purchase, and checking your purchase details. Your refund will show up on Affirm within 3–10 business days, although it could take up to 45 days if you paid using a virtual card. While you're waiting for your refund, you must continue to make any monthly payments that are due per the terms of your original loan agreement.

Cancelling before loan capture

If you need to cancel your Affirm loan before the loan capture, you must void the loan in the authorization stage of the transaction. This means that the loan won't be captured and registered as an official loan, and you can cancel without any Affirm fee. Once a loan is captured, it becomes an official" or active loan, and it won't be possible to cancel or void it without a fee.

If you have already received the item and need to return it, the refund will post to your Affirm account once the return is processed. The refund amount will be minus any interest you've already paid. If the refund is less than your loan balance, you'll have fewer monthly payments, a smaller final payment, or both. If the refund is more than your loan balance, the remaining amount will be refunded to your original payment method.

Note that orders paid for using Affirm cannot be refunded in site credit. If you paid using a virtual card, it could take up to 45 days for a refund to appear on your loan timeline. While waiting for your refund, continue to make any monthly payments that are due.

Frequently asked questions