Buy now, pay later platforms make checkout faster, but they also come with a unique set of fraud risks. Some merchants report high dispute rates with Klarna. Others see more first-party abuse with Afterpay. Affirm, despite stricter underwriting, isn't immune either. So which platform actually creates the most buyer fraud, and what kind of fraud is it?
Let’s break it down by platform, risk type, and what merchants should watch for.
Affirm: High-Ticket Risk, but Lower Abuse
Affirm is generally considered the safest of the three when it comes to buyer fraud. Its longer-term loans require soft credit checks, and underwriting is more selective. This makes it harder for fraudsters to open accounts using fake identities or stolen cards.
That said, the platform still has issues:
- Synthetic identity fraud: Sophisticated actors can bypass checks.
- Friendly fraud: Buyers claim they never received a product or cancel after receiving services.
- High-ticket disputes: Since Affirm supports larger transactions, the financial hit per dispute is higher.
While fraud volume is lower, dispute amounts tend to be higher. And when a chargeback does happen, merchants rarely win.
Afterpay: The First-Party Abuse Magnet
Afterpay’s appeal is speed. Buyers get approved instantly with minimal friction. But that convenience is exactly what makes it risky. Afterpay is more prone to first-party fraud, especially from customers who:
- Buy items and claim they were unauthorized purchases
- File disputes after returning an item late or worn
- Use family accounts and later deny the transaction
It’s not always professional fraud. It’s often everyday shoppers testing the system. That’s what makes it hard to detect and harder to win.
Klarna: The Wild Card
Klarna has the widest reach and the most flexible checkout types. That flexibility, however, brings complexity, and more fraud patterns.
Common fraud issues with Klarna:
- Stolen identity use during one-time checkouts
- Buyer remorse disputes filed after using "Pay Later" for digital goods
- Delivery disputes where the buyer claims they never received the item
Klarna’s systems are improving, but its wide accessibility creates a higher fraud exposure for merchants compared to Affirm or Afterpay. Klarna also has the most international reach, which introduces more varied fraud behaviors.
Comparing Fraud by Type
What Merchants Should Watch
- Dispute rates: Klarna and Afterpay tend to spike during holidays and promo periods.
- Average ticket size: Affirm disputes hurt more when they happen due to high-value orders.
- Product type: Digital goods, apparel, and luxury items see more Klarna fraud. Sub-$200 fashion goods are commonly targeted via Afterpay.
Knowing which BNPL platform attracts which type of fraud helps merchants adjust how they route payments and flag high-risk orders.
Pick Your Risk, Not Just Your Platform
Affirm may be the least risky in terms of buyer abuse, but it also attracts larger, more painful chargebacks. Klarna gives buyers more options, and fraudsters more openings. Afterpay? It’s the most user-friendly, but also the easiest to exploit.
No matter which one you use, understanding the risk patterns helps you prepare for what’s coming next.
FAQ: Affirm vs Afterpay vs Klarna Fraud
Which BNPL platform has the most friendly fraud?
Afterpay sees the most friendly fraud due to its instant approval system and low-friction checkout. Many disputes are filed by the actual buyer denying their own purchase.
Does Affirm have fewer chargebacks?
Affirm has fewer disputes overall due to stricter underwriting, but when a dispute happens, it’s usually for a higher amount and harder to fight.
Why is Klarna considered higher risk?
Klarna offers the most flexible checkout options, including "Pay Later" with no upfront verification. This opens the door to more types of fraud, especially delivery and buyer remorse disputes.
Can merchants win disputes from BNPL platforms?
It’s rare. Since the BNPL provider is the one technically issuing the credit, merchants usually have less control and limited visibility into the dispute process.
What product types are most targeted on these platforms?
Apparel, accessories, electronics, and digital goods tend to see higher fraud rates. Subscription services and high-ticket items are also more vulnerable through Affirm.
How can I protect my business from BNPL chargebacks?
Use fraud filters tailored to each platform, monitor refund requests closely, and consider using a chargeback prevention tool like Chargeblast to catch risky buyers before they dispute.
Chargeblast Keeps BNPL Fraud From Sneaking Past You
BNPL fraud looks different, but Chargeblast flags it early.
Use behavioral signals and pre-dispute monitoring to catch bad buyers before the chargeback. Whether it’s abuse through Klarna, family fraud via Afterpay, or synthetic identity risk on Affirm, Chargeblast helps stop the loss before it hits your merchant statement.
