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Merchant Accounts Payable
3 Months Ended
Mar. 31, 2024
Payables and Accruals [Abstract]  
Merchant Accounts Payable Merchant Accounts Payable
Merchant accounts payable represents amounts owed to merchants related to orders placed on the Sezzle Platform.

We offer our merchants an interest bearing program in which merchants may defer payment from us in exchange for interest. Within merchant accounts payable, $52,059,379 and $53,616,718 were recorded within the merchant interest program balance as of March 31, 2024 and December 31, 2023, respectively.

During the three months ended March 31, 2024, all deferred payments retained in the program bear interest at a fixed rate of 5.2% on an annual basis, compounding daily. The weighted average annual percentage yield and related interest expense was 4.82% and $636,255, and 4.04% and $581,120 for the three months ended March 31, 2024 and 2023, respectively.

Deferred payments are due on demand, up to $250,000 during any seven-day period, at the request of the merchant. Any request larger than $250,000 is processed within seven to ten days. We reserve the right to impose additional limits on the program and make changes to the program without notice or limits. These limits and changes to the program can include, but are not limited to, maximum balances, withdrawal amount limits, and withdrawal frequency.