One of the key benefits of accepting Stitch Pay Later is that Stitch, not you, carries the credit risk. Here's what that means in practice.
Your funds are safe
Once a Pay Later payment is settled to you, the money is yours. If the customer later misses instalments, defaults, or stops paying entirely, Stitch absorbs the loss. You don't get charged back, and we don't claw back your settlement.
What we do on our side
Stitch handles the customer side of a missed payment end-to-end:
- Automatic retries on the customer's nominated payment method.
- Reminder notifications and communication with the customer.
- Late-fee processing in line with our agreement with the customer.
- Where required, recovery action and credit-bureau reporting.
None of this involves you. You don't need to follow up with the customer, and you don't need to issue refunds or adjustments for missed instalments.
How is this different from a chargeback?
A customer default (a missed instalment) is Stitch's problem and doesn't touch your settlement. A chargeback or dispute (the customer disputing the original transaction) is handled the same way as for any other Stitch payment method. You'll be notified and can respond with evidence. See our dispute process.
Reporting
You can see all your Pay Later transactions, refunds, and disputes in your Stitch dashboard. Defaults aren't shown to you because they don't affect your funds. They're managed entirely on Stitch's side.
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