Amazon Pay Review

Pros

• Pay-as-you-go billing with no long-term contracts
• No monthly account fees
• Predictable flat-rate pricing
• Brand recognition
• Multiple website integration options

Cons

• High processing rates will be expensive for high-volume merchants
• Reports of withheld funds and account closures
• Complaints about poor customer service

What Is Amazon Pay?

Amazon Pay is an online checkout service that lets customers pay on participating websites using the payment and shipping information stored in their Amazon accounts. eCommerce businesses can register for Amazon Pay and add an Amazon Pay checkout button through a supported eCommerce integration or custom setup.

You do not need to sell products on Amazon.com to use Amazon Pay, although Amazon Pay accounts are managed through Seller Central. You’ll also have to comply with Amazon Pay’s Acceptable Use Policy, which prohibits you from selling products considered high-risk in the processing industry.

In this Amazon Pay review, we’ll answer the questions that need answering: What is Amazon Pay? Is Amazon Pay one of the best credit card processing choices? Is it right for my business?

Getting Started With Amazon Pay

Note that when you first start using Amazon Pay, you will have to wait a bit longer than usual to receive your funds. Amazon Pay may place a reserve on merchant funds to cover potential refunds, chargebacks, and A-to-z Guarantee claims. The reserve type and amount depend on the merchant’s account and risk profile.

Amazon Pay processes disbursements daily. Funds generally arrive in the merchant’s bank account within three to five business days after Amazon initiates the transfer, although a reserve may delay access to some funds.

To receive payouts, US merchants must connect a US checking account through Seller Central. Amazon also requires a valid credit card, which may be charged if refunds, claims, or other account obligations create a negative balance.

Amazon Pay Availability

Amazon Pay is currently available to merchants in the following countries:

• USA
• UK
• Austria
• Belgium
• Cyprus
• Denmark
• France
• Germany
• Hungary
• Ireland
• Italy
• Japan
• Luxembourg
• The Netherlands
• Portugal
• Spain
• Sweden
• Switzerland

Businesses must meet Amazon Pay’s registration requirements for their country of operation. US merchants need a US business address, US phone number, US checking account, US-issued credit card, and taxpayer identification number.

Products & Services

Amazon Pay offers online checkout, recurring payment, fraud-prevention, reporting, and integration tools for eCommerce businesses. One drawback, however, is that Amazon.com gift cards cannot be used to make purchases through Amazon Pay on third-party websites.

Feature highlights include:

• On-Site Checkout: Customers can complete checkout on the merchant’s website using payment and shipping information stored in their Amazon accounts.
• Amazon Pay Button: Merchants can add an Amazon Pay checkout button through a compatible eCommerce platform or custom integration.
• Recurring Payments: Amazon Pay supports subscriptions and other recurring or automatic payments.
• Payment Protection: Amazon Pay’s Payment Protection Policy may protect merchants from liability for qualifying fraud-related chargebacks when the merchant and transaction meet all policy requirements.
• Voice Solutions: Amazon Pay allows customers to make purchases or donations through their Alexa devices. Create an Alexa Skill and add Amazon Pay to the skill to enable voice purchasing.
• Charitable Donations: Eligible nonprofits can add a Donate with Amazon button to their websites and receive discounted processing rates.
• Multiple Integration Options: Amazon Pay provides many ways of integrating it with your selling platform. These integrations range from plug-and-play options that are built into popular eCommerce software to custom solutions that fit the needs of enterprise businesses. You have the freedom to choose the integration that best fits your business and technological know-how.
• Amazon Seller Central: Merchants use Seller Central to manage Amazon Pay transactions, reports, payouts, refunds, and disputes.

Integrations & Add-Ons

Amazon Pay supports integrations with participating eCommerce platforms and solution providers, as well as custom integrations for businesses with in-house development resources.

Look into Amazon Pay’s documentation for more details regarding integration options.

Fees & Rates

Like PayPal and most other eCommerce-focused processors, Amazon Pay uses flat-rate, pay-as-you-go pricing and publishes its standard transaction fees online.

Processing fees depend on the transaction type and whether the customer’s payment method was issued domestically or internationally.

Pricing Overview

Extra Costs

Amazon Pay does not charge account setup, monthly account, or early termination fees. Amazon Pay just charges fees on the transactions you process, so you only pay when you use the service.

Sales & Advertising Transparency

Amazon Pay benefits from Amazon’s established brand and large global customer base.

Amazon publishes its standard transaction fees and key merchant policies online. As long as you take the time to read the FAQs on the website, you should have a good grasp of how the service works. Accordingly, Amazon Pay deserves its high score in this category.

Amazon Pay also has a respectable presence on social media, with active accounts on Facebook and X. Additionally, it maintains a blog and has a YouTube channel that features numerous tutorials and testimonials from merchants.

Contract Length & Early Termination Fee

Amazon Pay does not require a fixed-term processing contract and does not charge an early termination fee.

Merchants can contact Amazon Pay support to request account closure without an early termination fee. Unlike other processors who require at least a 30-day written notice of account closure to avoid getting billed for an additional month, you can close your account at any time with no penalty.

Customer Service & Technical Support

Amazon Pay has consolidated its online support resources into a single Help section. From here, you can access a tremendous variety of topics ranging from how to sign up for the service to how to handle a chargeback, and much more.

The help section is divided into resources for customers and merchants, so your customers can use it as well if they have a problem with completing an order or making a payment. Documentation is also available for integrating any of the numerous third-party shopping carts that are compatible with Amazon Pay.

While the Help section of the website should be your first stop if you need help, traditional customer service options are also available. Customer support is available via email, telephone, and live chat. Registered merchants can access Seller Support through Seller Central, and Amazon states that account-setup support is available 24/7.

Be aware that you must already be signed up for the service to use these options. Therefore, we weren’t able to see how easy or difficult it is to reach a customer support representative.

User Reviews

Feedback from merchants using Amazon Pay is mostly positive, although the service does receive many of the same types of complaints that are common with payment service providers (PSPs). These issues include frequent account holds, freezes, and terminations, as well as limited customer service options.

Despite these complaints, Amazon Pay is quite well-received by merchants on the whole. Amazon Pay’s average user rating stands at 4.6/5 at GetApp (based on 150+ reviews) and 4.5/5 at G2 (585+ reviews).

Negative Reviews & Complaints

While there aren’t a lot of complaints specifically about Amazon Pay, we did find a few issues that were common enough to note, including:

• Account holds, freezes, and terminations
• Initial funding hold
• Flat-rate pricing is more expensive than other options
• Sign-up takes too long

Positive Reviews & Testimonials

In addition to case studies on the Amazon Pay site, there are many reports online from users who are satisfied with the payment processor. A thorough search found the following common positive attributes:

• Quick payment process
• Easy to use
• Trusted name in eCommerce

Final Verdict Of Amazon Pay

Existing Amazon sellers may appreciate being able to manage Amazon Pay through familiar Seller Central tools. At the same time, Amazon Pay also offers significant advantages for sellers and organizations not associated with the company.

You’ll be able to manage transactions, view reports, contact customer support, and more in Amazon’s Seller Central. You’ll also be protected against fraud-related chargebacks that fit into the service’s payments protection policy. What’s more, keeping checkout on the merchant’s website and allowing customers to use stored Amazon information may help reduce checkout friction.

Amazon Pay has no setup or monthly account fee, making it relatively easy to test as an additional checkout method. It is best suited to online businesses whose customers are likely to value a familiar Amazon-branded checkout experience. However, merchants should consider its flat-rate processing costs, reserve policy, and limited usefulness outside eCommerce before signing up.