What Is Step Pay? Fees, Limits, and Missed Payments

CommBank StepPay is the Commonwealth Bank of Australia’s buy now, pay later service. It splits eligible purchases of $100 or more into four equal, interest-free payments taken from your linked CommBank account over about six weeks, using a virtual Mastercard you keep in your phone’s digital wallet.¹ There are no monthly or annual fees, and late fees are capped at $120 per year.

How the Four Payments Work

Every qualifying purchase is divided into four equal installments spaced two weeks apart. The first installment is debited from your linked CommBank account roughly two days after the transaction posts, not at the moment you pay. The remaining three come out on consecutive fortnights.¹ A $200 purchase becomes four debits of $50.

Payments pull automatically. You can see the upcoming dates and amounts in the CommBank app, and you can pay off one or more installments early at any time through the app if you want to clear the balance sooner.²

Who Can Get StepPay

To qualify, you need to be:

18 years or older
An Australian resident, or holder of an eligible visa, with an Australian residential address
The holder of an eligible CommBank everyday account to use as your repayment account
Approved under CommBank’s credit assessment

If you don’t already bank with CommBank, you’ll need to open an eligible account first. StepPay isn’t available to people living outside Australia, regardless of citizenship.³

You apply through the CommBank app. The app asks about your income and expenses, and CommBank runs a credit check that looks at your products with them and credit held with other institutions.² If approved, your virtual Mastercard appears in the app and you can use it straight away.

Spending Limits and the $100 Minimum

A purchase needs to be at least $100 to be split into four. Anything under $100 is deducted in a single payment from your linked account about two days after the transaction posts, so small everyday spending on the StepPay card just hits your account as a normal debit.¹

Your overall spending limit is set during the application and ranges from $200 up to $2,000, depending on your financial situation. CommBank may adjust the limit over time based on your account and repayment history, and you can check your current limit in the app.²

Paying Online, In-Store, and Overseas

StepPay is a fully digital card. There’s no plastic. Online, you enter your virtual StepPay card details at checkout anywhere Mastercard is accepted. In-store, you add the card to your phone’s digital wallet and tap to pay at the register.⁴

Because it runs on the Mastercard network, StepPay also works with overseas merchants. CommBank doesn’t charge international transaction fees or foreign exchange fees on overseas purchases, which is unusual compared with most Australian credit cards that typically add around 3% on foreign-currency transactions.⁵ Mastercard handles the currency conversion at its own exchange rate when you buy something in a non-Australian currency.¹

Fees

StepPay charges no interest, no monthly fees, and no annual fees. Pay every installment on time and you pay exactly the purchase price.¹

Miss an installment and CommBank charges a $10 late fee for that missed payment. Total late fees are capped at $120 per anniversary year, so repeated defaults can’t push the fee exposure beyond that ceiling.¹

What Happens If You Miss a Payment

The $10 late fee isn’t the whole story. Missing a payment triggers a default on the account, and CommBank can respond in several ways, some without warning:

Immediately suspend your StepPay account, stop new transactions, or reduce your credit limit without prior notice
Send a formal default notice giving you at least 30 days to fix the default
If the default isn’t resolved after that notice, declare the entire outstanding balance payable immediately and take legal action to recover it

The practical takeaway: keep enough in your linked account to cover each installment before its due date. Low-balance alerts in the CommBank app help.

Credit Score Effects

Applying for StepPay involves a standard credit check with credit bureaus, similar to applying for a credit card or personal loan, and the inquiry appears on your credit file. If you’re planning to apply for a mortgage or other significant credit product soon, the timing is worth thinking about.⁶

Once you have the account, missed payments can hurt your credit score. Credit agencies treat a pattern of defaults on a buy now, pay later account the same way they treat missed payments on any other credit product. Paying on time consistently contributes positively to your repayment history.⁶

Refunds

If you return something bought with StepPay, the refund is processed back through the card. CommBank’s terms require you to contact them within 30 days of the original transaction date to use the refund process; after that window, they may not be able to claim the refund on your behalf. Any remaining installments on a fully refunded purchase are adjusted once the refund is applied.¹

1
Commonwealth Bank of Australia. StepPay Terms and Conditions
2
CommBank. StepPay – Buy Now, Pay Later With No Interest
3
CommBank. Are You Eligible for StepPay
4
CommBank. Simple Steps to Purchasing Online With StepPay
5
CommBank. Travelling Soon? Heres How StepPay Can Help
6
CommBank. How StepPay Affects Your Credit Score