Affirm limits its financial responsibility to you and will not pay for indirect losses such as lost profits, data loss, or other consequential damages even if it knew those damages were possible.
This analysis describes what Affirm's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
If Affirm's service fails in a way that causes you financial harm beyond direct transaction amounts, such as a data breach or service outage affecting a time-sensitive payment, this clause limits your ability to recover those losses.
Interpretive note: Enforceability of this clause varies by jurisdiction and may be limited by non-waivable consumer protection statutes in California and other states.
This provision means that if Affirm's platform causes you harm beyond direct transaction losses, such as a missed payment due to a system error, you may be limited in the damages you can recover from Affirm.
How other platforms handle this
TO THE MAXIMUM EXTENT PERMITTED BY LAW, NEITHER WHATNOT NOR ITS SERVICE PROVIDERS INVOLVED IN CREATING, PRODUCING, OR DELIVERING THE SERVICES WILL BE LIABLE FOR ANY INCIDENTAL, SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES, OR DAMAGES FOR LOST PROFITS, LOST REVENUES, LOST SAVINGS, LOST BUSINESS OPPORT...
In no event will either party's aggregate liability arising out of or related to this Agreement exceed the total fees paid or payable by Customer in the twelve (12) months preceding the claim. In no event will either party be liable for any indirect, incidental, special, consequential, or punitive d...
Except as stated in Section L.3.b, the liability of each party, and its affiliates and licensors, for any damages arising out of or related to these Terms (i) excludes damages that are consequential, incidental, special, indirect, or exemplary damages, including lost profits, business, contracts, re...
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"TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, AFFIRM AND ITS OFFICERS, EMPLOYEES, DIRECTORS, SHAREHOLDERS, PARENTS, SUBSIDIARIES, AFFILIATES, AGENTS, AND LICENSORS SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, PUNITIVE, OR EXEMPLARY DAMAGES, INCLUDING WITHOUT LIMITATION DAMAGES FOR LOSS OF PROFITS, GOODWILL, USE, DATA OR OTHER INTANGIBLE LOSSES (EVEN IF AFFIRM HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES), RESULTING FROM USE OR THE INABILITY TO USE THE SERVICE.— Excerpt from Affirm's Affirm Terms of Service
REGULATORY LANDSCAPE: Limitation of liability clauses in consumer financial services contracts may be constrained by applicable consumer protection statutes that create non-waivable consumer rights. The FTC Act prohibits unfair or deceptive practices, and a limitation clause that functionally denies consumers remedies for Affirm's own negligence or legal violations could attract FTC scrutiny. State consumer protection statutes, particularly in California under the CLRA and UCL, may further limit the enforceability of such clauses against consumers. GOVERNANCE EXPOSURE: Medium. The phrase 'to the maximum extent permitted by applicable law' is standard qualifying language that acknowledges the clause may not be fully enforceable in all jurisdictions, but the breadth of the exclusion, covering data loss and service unavailability, is material for a financial services platform where service reliability directly affects consumer financial obligations. JURISDICTION FLAGS: California's Consumers Legal Remedies Act and Unfair Competition Law impose non-waivable consumer protections that may limit how this clause applies to California residents. New York and other states with strong consumer protection frameworks may similarly constrain enforceability. CONTRACT AND VENDOR IMPLICATIONS: Merchant partners should note that Affirm's limitation of liability applies to its own platform and does not protect merchants from liability to consumers for transaction disputes processed through Affirm. COMPLIANCE CONSIDERATIONS: Legal teams should assess whether this limitation clause is consistent with Affirm's obligations under Regulation E, which provides consumers with specific error resolution rights and liability caps for unauthorized transfers that cannot be contractually waived.
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If Affirm's service fails in a way that causes you financial harm beyond direct transaction amounts, such as a data breach or service outage affecting a time-sensitive payment, this clause limits your ability to recover those losses.
This provision means that if Affirm's platform causes you harm beyond direct transaction losses, such as a missed payment due to a system error, you may be limited in the damages you can recover from Affirm.
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