Out-of-Band payments are payments that Affirm makes to merchants outside the normal settlement process and timelines. There are different scenarios where Affirm will make Out-of-Band payments, which are processed through Accounts Payable:
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Whenever a customer dispute is adjudicated in favor of the customer when it should have been adjudicated in favor of the merchant, Affirm initiates an Out-of-Band payment to repay the merchant for funds that were deducted from their bank account.
- In cases where an Affirm loan is flagged due to suspicious factors (potential customer fraud), Affirm sends the merchant a Stop Shipment Request to ask them not to ship out a particular order. If the merchant is able to stop the shipment but incurs any shipping fees, Affirm will reimburse them for the fees through an Out-of-Band payment.
If you want to inquire if a particular disbursement will become an Out-of-Band payment, or need further help in general, contact our Merchant Care team using the Business Resource Hub help widget.