If you shop at Amazon (who doesn’t?) then you’ve probably heard of Amazon Payments. It’s both a website and an app that you can use to make purchases seamlessly. But your use of this payment service is not just limited to paying for purchases on the retailer giant’s website. You can use it to pay thousands of merchants that accept Amazon Payments.
How It Works
Those who have used Paypal before will easily understand the concept of Amazon Payments. They’re very similar with only some minor differences. Here is a video that describes the process of Amazon payments and how it can benefit it’s users:
With Amazon Payments, you can send and receive as much as $1,000 in one month without being charged any fees. Buyers who pay through this service using their credit cards will not incur any charges; while sellers can easily withdraw their funds to a bank that they have linked to their Amazon Payments account, at no cost.
To set up your Amazon Payments account, you need to create your username and password. You’ll be asked to enter some personal information and then verify your email address.
Once it has been verified, you will then need to link your bank account to your Amazon Payments account. Amazon will require you to verify ownership of the account by sending you two small deposits and then you need to confirm the exact amount of each one. Once that is done, you can add your credit cards to your account to facilitate fund transfers.
If you want to send payment to someone, you only need to get the email address of the account holder. Amazon will then ask you what the payment is for and then you need to double check that all information is correct before you click Continue. The transaction is very quick and will take no more than a minute.
On August 2014, Amazon introduced the Amazon Local Register which is a mobile POS similar to Square’s Register. It’s an ideal service for merchants who conduct business on the road.
Advantages of Using Amazon Payments
Amazon Payments is highly advantageous for both sellers and buyers on the Amazon shopping website. You get savings because there’s no fee for purchases of less than $1,000 in one calendar month. In addition, it’s also a very secure payment service, with a solid risk and fraud mechanism in place to protect merchants and customers.
Moreover, setting up your Amazon Payments account is easy and it supports various payment formats similar to Paypal.
Disadvantages of Using Amazon Payments
Despite the nice benefits offered by Amazon Payments, there are still some drawbacks. First of all, it is only available in the US and UK so those living outside these two countries are unable to use this service.
For sellers, another issue would be their tendency to freeze accounts if they notice any suspicious activities or if there is any reason not to trust you. Your account could be suspended for 90 days when this happens.
Amazon is the largest online retailer in the world, with a revenue of $74.45B in 2013. If you are an Amazon merchant or if you frequently shop here, then it makes a lot of sense to use Amazon Payments. Not only does it give you savings (no fees for $1,000 or less) it’s also very easy and safe to use.