SESKStuff Everyone Should Know
SESK: Stuff Everyone Should Know · sesk.info/teen-bnpl-fees

Many Buy Now, Pay Later plans advertise no interest. What does the FTC say about fees?

Most plans do charge some fees, such as late fees.

Start playing free

  1. Federal law bans all BNPL fees
  2. BNPL plans never charge any fees
  3. Most plans charge some fees, like late fees ✔

Why: Ads may say no interest, but the FTC warns that most plans charge fees. These can be fees per payment, for paying late, or for changing a payment date.

Huh, didn't know that: Some BNPL companies report your payments to the credit bureaus, so a late payment could hurt your credit.

The dad joke
I remember being in so much debt that I couldn't afford my electricity bills. It was a dark time.
Like this card?
Play the game

References

Answer: Most plans charge some fees, like late fees. Ads may say no interest, but the FTC warns that most plans charge fees. These can be fees per payment, for paying late, or for changing a payment date.

  1. FTC: Buy Now, Pay Later, Rent-to-Own, Lease-to-Own, and Layaway consumer.ftc.gov/articles/buy-now-pay-later-rent-own-lease-own-and-layaway
    most plans do charge some fees (sometimes high ones).
    Checked 2026-10-10.
  2. CFPB: What is a Buy Now, Pay Later (BNPL) loan? www.consumerfinance.gov/ask-cfpb/what-is-a-buy-now-pay-later-bnpl-loan-en-2119
    most do charge late fees for missed payments.
    Checked 2026-10-10.

Think this answer is wrong? Tap "Challenge this answer" on the card in the game and tell us why.

Test yourself in the game

MoneyWhat is an overdraft?MoneyWhat can happen if your employer withholds too little tax from your pay?MoneyA "boss" says you must pay a fee to get hired. What is it?

That's stuff everyone should know.