Buy now, pay later has changed how people shop, but not always for the better. While platforms like Affirm help boost conversions, they also open the door to high dispute rates and friendly fraud. If your business is dealing with post-purchase chargebacks or unclear resolution processes, it may be time to explore Affirm alternatives with lower dispute rates.
Here’s a breakdown of which BNPL platforms are less risky for merchants and why switching might save your revenue and reputation.
Why Some BNPL Platforms Trigger More Disputes
Not all BNPL providers handle disputes the same way. Some have more lenient buyer policies, others lack fraud controls, and a few barely communicate with merchants during the dispute process.
Common causes of high dispute rates with BNPL tools:
- Weak identity verification during checkout
- Delayed or missing notifications about disputes
- Automatic refunds to buyers before merchants can respond
- No support for compelling evidence submission
These issues make it harder to prevent chargebacks, especially for digital products, services, and high-ticket items.
BNPL Platforms With Lower Dispute Risk
Let’s look at some Affirm alternatives that are better at handling fraud, chargebacks, and post-sale issues.
1. PayPal Pay Later
- Dispute process: Integrated into PayPal’s Resolution Center
- Merchant involvement: Merchants can respond directly within the platform
- Risk profile: Lower than Affirm due to existing PayPal fraud detection
- Best for: Merchants already using PayPal who want fewer integrations
PayPal has stricter controls around buyer eligibility and monitors transaction risk in real time. Chargebacks are still possible, but merchants get more visibility.
2. Klarna
- Dispute process: Buyer reports issue through Klarna app, but merchant is looped in
- Merchant involvement: Can submit tracking, proof of delivery, and more
- Risk profile: Slightly higher for fashion and digital, but lower overall than Affirm
- Best for: Brands with strong fulfillment and tracking systems
Klarna’s buyer-first approach can be frustrating, but it offers clearer windows to respond. It's more balanced in industries with low refund abuse.
3. Afterpay
- Dispute process: Limited chargeback support, but fewer disputes initiated
- Merchant involvement: Minimal unless buyer files with their bank
- Risk profile: Low for physical goods with shipping confirmation
- Best for: Retail and consumer goods
Afterpay screens buyers more aggressively and tends to favor merchants when shipping proof is provided.
4. Sezzle
- Dispute process: Issues are usually resolved in-app between buyer and support
- Merchant involvement: Sezzle handles fraud monitoring, but has limited evidence support
- Risk profile: Low for recurring customers, moderate for new users
- Best for: Smaller merchants or niche stores
Sezzle's fraud rate is relatively low due to its user verification process. It’s less popular than Affirm, which also means fewer high-risk shoppers.
Factors That Lower BNPL Dispute Rates
If you’re evaluating Affirm alternatives, don’t just look at conversion rates. Check for:
- Merchant control in the dispute process
- Fraud protection built into checkout
- Notification timing and response windows
- Buyer accountability (for example, verified contact details or ID checks)
- Historical chargeback rates by industry
Merchants selling high-risk products, digital services, or subscriptions should prioritize BNPL tools that give them time and tools to respond. Affirm’s lack of merchant-first policies makes it harder to fight buyer abuse.
Final Thoughts
Switching to a different BNPL provider doesn’t guarantee zero chargebacks. But picking one with tighter fraud screening, better dispute workflows, and clearer buyer communication makes a difference. The wrong BNPL tool can quietly raise your chargeback rate. If Affirm has become more headache than help, there are safer alternatives out there.
FAQ: Affirm Alternatives With Lower Dispute Rates
Which BNPL provider has the fewest chargebacks?
PayPal Pay Later and Afterpay tend to have fewer chargebacks because of stronger buyer verification and clearer resolution paths for merchants. Klarna is also relatively low-risk in most retail categories.
Is Klarna safer than Affirm for merchants?
Yes, Klarna offers more transparency in dispute resolution and allows merchants to submit evidence before final decisions are made. Affirm often favors buyers without enough room for merchant input.
Does switching from Affirm affect conversion rates?
It can, depending on your customer base. Klarna and Afterpay have strong adoption among Gen Z and Millennials, so most stores don’t see major drop-offs. Testing is the best way to know.
How can I reduce BNPL chargebacks, no matter which provider I use?
Use clear billing descriptors, send fulfillment updates, and respond quickly to support tickets. Also, avoid selling high-risk products through BNPL unless you can prove delivery and authorization.
Why do some BNPL platforms favor buyers during disputes?
Many BNPL companies are focused on user growth and retention. That means they sometimes make refund decisions to protect buyer experience, even if the merchant is right. This can lead to higher fraud rates if abuse goes unchecked.
Tired of Getting Blindsided by BNPL Disputes?
Choosing a better BNPL provider is only one step. To keep chargebacks low, you need better visibility into buyer behavior and stronger tools to fight disputes. Chargeblast gives you real-time alerts, automated evidence responses, and smart fraud flags that help you stay ahead.
If your dispute rates are creeping up, it’s time to see what Chargeblast can do.
