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Amazon Payments

Is This Your Business?
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2 User Reviews

Amazon Payments, Inc. is a subsidiary of Amazon.com based out of Seattle, Washington and was launched in 2007. Amazon Payments provides a means for businesses to process transactions online using the same checkout experience and the same consumer base that can be found on Amazon.com. Amazon is recognized and trusted worldwide; therefore, consumers are comfortable with the purchasing process and it gives them a semblance of security, which is important with any type of purchase online or otherwise. The Amazon Payments service is extremely user-friendly as all the customer's information is already stored on their Amazon.com account. That means customer transactions are streamlined because they don't have to re-enter their shipping and payment information each time they make a purchase, as long as that business accepts Amazon Payments. Amazon Payments, sometimes referred to as Login and Pay with Amazon, is similar to PayPal and Google Checkout. Amazon also has another payment service called Amazon Register, which is similar to Square; however, that is a different topic outside the scope of this review.

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The Good

  • No Hidden Fees
  • Automatic Payments
  • Link with Amazon Account

No Hidden Fees

People worldwide recognize Amazon and trust their reputation. Amazon doesn't appear to use any deceptive marketing practices nor do they misrepresent any of their terms and fees. And most of their advertising is done through traditional sources, which helps with consumer confidence in their products and services. Amazon Payments provides a wide variety of popular options, such as:

  • Low costs
  • No hidden fees
  • No set-up fee
  • No fraud protection fees
  • No cancellation fees

Automatic Payments

They also have automatic payments available, as well as low volume-based pricing. You can integrate shopping cart and eCommerce providers. Another very popular benefit is the fact that Amazon Payments offers fast and reliable next-day deposits for swiped transactions and up to $1000 per day for manually keyed transactions. And your customers will get the benefit of the check-out with Amazon's 1 Click feature. On top of all that they have an award-winning customer support team.

Link with Amazon Account

Leveraging the trusted Amazon brand could lead to increased sales. And when paying with Amazon, customers can quickly and easily login and pay with the information that's already stored on their Amazon.com account. Additionally, when a customer logs in, the business owner can retrieve that customer's name and email address so he can further personalize their onsite experience. Another important fact is that the customer never has to leave the business' website to enter his payment information, which helps with conversions and keeps customers on the business' website longer. Amazon Payments offers a hassle-free mobile payment option using Smartphone's and tablets with no extra setup.  This is extremely important because the more convenient you can make it for your customers to pay, the more likely they are to complete the transaction and return again the next time they need to make a purchase. In fact, many merchants who use Amazon Payments have commented that they are achieving a higher average order value using Amazon versus any other payment method they have used.  Amazon makes it so easy with their 1 Click checkout option and the fact that the customer doesn't have to re-enter their credit card details or shipping information every time they make a purchase, and this is huge when it comes to customer convenience and keeping the entire process very user-friendly.

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The Bad

  • Merchant Complaints
  • Higher Processing Fees
  • Holds Funds

Merchant Complaints

Of the merchant complaints that are on file, the majority are due to the holding of a merchant's funds and perceived poor customer service from Amazon. However, if you read the complaints that have been filed, it appears they come from merchants who don't seem to understand how the Amazon payment process works and how the payments are supposed to be handled. With that being said, it is still quite possible that some of the  merchant complaints about funds holding and the freezing of merchant accounts may be a problem that Amazon Payments needs to address, if they want to continue trying to build a good reputation for this service. We recommend that if you decide to try Amazon Payments you perform your own research and dig a little deeper into these issues so you can make an educated decision about what is best for you and your company.

Higher Processing Fees

Overall, Amazon Payments appears to have some very good options that benefit merchants and consumers alike. However, there are some negatives to consider. Such as the fact that their processing fees are a bit higher than a traditional merchant account through other providers and customers must have an Amazon account if they want to pay using this method.  Therefore, merchants will need to employ other forms of payment processing for those customers who don't have an Amazon account.

Holds Funds

Some users have reported that Amazon sometimes holds funds for over 90 days without prior notice. And merchants selling "high-risk" products often find themselves being accused of selling bootlegged goods. This ultimately results in their account being flagged. There are also several complaints about incompetent, rude and a less than helpful customer service department. Although Amazon claims they have an award-winning customer service team. Customer service is subjective and something each person will form their own opinion based on their own experiences.

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The Bottom Line

For the most part, merchants are happy with Amazon Payments, primarily due to the fact there are no monthly fees and the system is very simple to implement. But the processing fees are a bit higher than a traditional merchant account and the customer must have an Amazon account if they want to pay using this method. Additionally, everything is managed on the Amazon platform, such as sales tax, shipping, and cancellations. And, merchants are offered a payment protection policy to help guard against chargeback's, which is another huge benefit. Another thing we like about Amazon Payments is the trust factor in their name recognition and the fact that customers never leave the business' website to complete a transaction. This is extremely helpful when it comes to customers fully completing a transaction and with increasing conversion rates as well. The negative reviews leave some room for doubt about whether or not Amazon Payments is on track to becoming the best payment processing option available. However, Amazon has been around for a long time and if legitimate problems exist, we are confident that Amazon will get a handle on them and make the adjustments necessary to correct them before they further hinder their brand and their services.

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Amazon customer Valencia, CA

Ordered a pre paid Visa Gift Card for $105.95 and it was sent un activated. I called them for refund or activate, no one wanted to take a responsibility to fix the problem, claiming it had been over 30 days.What we supposed to use card within 30 days to see if you properly activated the card and balance is there , even tho card exp 2025! No one wanted to take a responsibility and take an action. From buyers on Amazon we see lots of negative reviews about this issue.Amazon Payment Inc, collect payments and mail not activated cards! We need a refund! https://www.amazon.com/Visa-Gift-Card-plus-Purchase/dp/B01MSBQB1P/ref=sr_1_1?ie=UTF8&qid=1517269961&sr=8-1&keywords=visa+card#customerReviews

3 years ago

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Marlon Shaw Pittsburgh, PA

I stet-up an Amazon payments shopper account on 3/22/2018, my e-mail was verified, my bank account was verified, and a message stated that my identity was being verified and that it would take up to 24 hours. It is now 4/15/2018, I contacted representatives eight times, I have been told that they are sending a message to Technical and to wait 1-2 days. So, for some reason I am being refused service, I canceled my Amazon prime account, I was going to replace my fire-stick, but I will be going with a competitor.

3 years ago

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