Amazon Local Register Review

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Amazon Local Register Rating
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UPDATE 2/15/2019: Amazon discontinued its Local Register service in February 2016. See our list of the top mobile payment processing apps.

Amazon Local Register ( is a mobile payment solution from Amazon that was launched in August 2014 to compete with existing mobile processing apps like Square, GoPayment, and PayPal Here. Technically an extension of the company’s “Amazon Local” small business program, Amazon Local Register enables merchants to accept transactions using a free mobile app and a card swiper that plugs into a mobile device’s headphone jack. The service is compatible with all iPhone models after the iPhone 4, all Samsung Galaxy phones after the S3, iPad, iPad Mini, and Kindle Fire HD and HDX tablets. It is designed to be used in conjunction with an Amazon Payments account, so merchants will be required to create one if they do not have one already. Jeff Bezos is the CEO of Amazon.

Amazon Local Register Customer Reviews

Here's What Their Clients Say

Key Points

Total Online Complaints 200+
Live Customer Support Yes
Most Common Complaint Fund Holds

We are currently able to locate hundreds of negative Amazon Local Register reviews. Most of the available complaints can be found on the Amazon card swiper product page, where it has a 3.1 out of 5 rating, and on the Google Play store, where it has a 2.4 out of 5 rating. Complainants typically cite the withholding of large amounts, the inconvenience of upgrading a personal Amazon account to a business account, limited device compatibility, and a fairly basic interface that can’t be navigated as swiftly as those found with the service’s competitors.

Amazon Local Register support is available by phone seven days a week from 6 a.m. to 9 p.m. PST and the company also offers email support. This may prove to be a significant advantage for the company over Square, which offers no phone support, and PayPal Here, which generally receives mixed reviews for its customer service. Current reviews do mention that customer service reps can be reached fairly easily, which is a positive sign.

Amazon Local Register Online Ratings

Here's How They Rate Online

Amazon Local Register does not have a dedicated Better Business Bureau profile, but the BBB does maintain a profile for Amazon as a whole. Amazon’s profile currently has a “B+” rating with the BBB and over 6,400 complaints. We will not factor this BBB report into the overall grade for Amazon Local Register because it includes complaints related to all of Amazon’s products and services.

Amazon Local Register Fees, Rates & Costs

A Closer Look at The Contract

Key Points

Swiped Rate 2.5%
Keyed-in Rate 2.99%
Early Termination Fee None
PCI Compliance Fee None
Equipment Lease Terms None

Amazon Local Register advertises that it charges only two rates: 2.5% for swiped payments and 2.99% for keyed-in payments. These rates are significantly lower than those offered by Amazon’s primary competitors, Square and PayPal Here. Amazon Local Register also advertises no monthly fees, no long-term contracts, no chargeback fees, no refund fees, and no additional fees for international cards. Amazon’s card reader costs $10 and does not appear to be reimbursed via account credit at this time.

At first glance, this pricing appears to be highly competitive and ideal for most small retailers. However, it is worth noting that Amazon has a similar policy to other mobile processors regarding cash reserves and fund holds. Merchants should be sure to read two sections of the company’s user agreement in particular:

We may require that you maintain a minimum balance in your Payment Account or establish a separate reserve account Reserve to secure the performance of your payment obligations under this Agreement. The Reserve will be in an amount we determine to cover our risk from providing the Services to you (including without limitation anticipated Chargebacks or credit risk) or the amount designated by our Processor. The Reserve may be raised, lowered or removed from time to time. You agree that we may fund the Reserve from your Balance, funds sent by you upon our request, or funds due to you under this Agreement. You grant us a security interest in and lien on all funds held in any Reserve, and you also authorize us to make any withdrawals or debits from the Reserve, without prior notice to you, to collect amounts that you owe us, our Affiliates, your customers or Other Users.

Your Payment Account may be subject to certain limits, which may affect your ability to send, receive, or withdraw funds. Any limits may be modified at any time. These limits may be affected by several factors, including without limitation our assessment of the risk associated with your Payment Account, the amount of pending or potential Chargebacks, the information you provide, our ability to verify your account information, and requirements of law. In addition to account limits, we may restrict transactions to or from your Payment Account or limit access to funds in your Payment Account in an amount and for a period of time we deem necessary to protect us, your customers, or Other Users including without limitation if: (a) we are subject to financial risk, (b) you have violated any term of this Agreement, (c) you have pending Chargebacks or we believe you may have Chargebacks, (d) any dispute exists involving your Payment Account or transaction conducted in connection with your Payment Account, (e) needed to protect the security of our systems, or (f) required by law or court order or if otherwise requested by law enforcement or any governmental entity. We may inspect your Payment Account for any reason.

We have found a handful of Amazon Local Register complaints that specifically mention account freezes or withheld funds. At least one of these merchants charged a very high amount on a keyed-in transaction immediately after opening the account, which is a behavior that is likely to result in a hold. Given the low number of complaints about this issue, we will award Amazon Local Register an “A-” rating in this category for the time being.

Amazon Local Register Employee Reviews & Sales Tacitcs

Should You Work For Them?

Key Points

Employs Independent Resellers No
Advertises Deceptive Rates No
Discloses All Important Terms Yes

Amazon appears to primarily market its Local Register service through its existing customer outreach channels. As the world’s largest online retailer and a globally recognized brand, the company does not need to employ a team of sales agents to pitch a new service. As of this review’s publication, Amazon is promoting a limited-time offer of a $25 credit for all new merchants who sign up for Local Register before August 31, 2015. There appears to be nothing misleading about this promotion. In fact, there is no indication at this time that Amazon is engaging in misleading rate promotion or nondisclosure of fees, so we will award the service an “A+” in this section for now.

Our Amazon Local Register Review Summary

Our Final Thoughts

Amazon Local Register rates as an above average mobile payment processing option at this time for most small businesses. The service is still very new, but it has already attracted some complaints related to withheld funds. Our rating for Amazon Local Register will continue to change as more useful merchant feedback begins to surface. Merchants should be sure to understand their contract terms to the fullest extent possible and to avoid transacting very large or risky amounts in the first few weeks of using the service.

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Your Comments & Reviews

How Did Amazon Local Register Treat You?

4 Responses

  • I am also having problems getting my funds from Amazon Register. I opened the account and processed two payments. I was able to make a deposit on the first 2 transactions. Then I made 8 more transactions and now 10 days later, I still do not have my funds. They keep stalling and saying they are reviewing my account. Asking for company information that they should of checked before I ever made a deposit. What a joke. Now that I have read these reviews and see that they have a pattern of holding funds I will no longer do business with them. This is unethical and unprofessional to say the least. Yes they should be paying me interest on this money. I am shocked that Amazon would act in this way. They will never get a good review from me again. They will be slammed for their unethical behavior. This is not a trustworthy business. Bum sure they have scared numerous businesses away. They are as stupid as Uber. Unethical businesses with bad practices will not survive.

  • Andrew Zawodny

    Small buisness beware.They will withhold payments at any time.And according to the customer service Representitive does not have to explain.”Its just because they can”

    • Robert Gregory

      I set up my account with no problems. I made a swiped charge in my first month and everything processed normally. At the beginning of this month, I keyed in a charge for $1800 at my client’s request and Amazon cancelled my account and put a 90 day hold on 100% of the money. For a small business, that is outrageous. I now have to wait a full quarter of a year to collect on a perfectly legitimate charge. They said my business was on their list of restricted businesses. I scoured the list and could not find my type of business on it. They apparently did it on a whim without any effort or investigation. When I challenged them on it, they sent the response below. I especially enjoyed the line “We took this action to ensure that all parties have the best experience using Amazon Register.” I am sure there is at least one party who is not having the “best experience” using their crappy system

      I wonder how much money is held in aggregate, by Amazon on average. I bet it is a pretty big number. Wonder if it is used to prop up the balance sheet? A very poor way to run a business. I will investigate my options in small claims court just as a matter of principle.

      Amazon’s Response to my request to release the funds:
      After a periodic review of your account, we have decided to remove your selling privileges and have placed a temporary hold on any funds in your Amazon Register account.

      We took this action to ensure that all parties have the best experience using Amazon Register. Your account is restricted and cannot be used to initiate any transactions and any pending transactions will not be processed.

      Any amounts paid as a result of credit card disputes may be deducted from your account. After 90 days, the hold will be removed and any remaining funds will be available for withdrawal.


      Amazon Register

  • I also would like to chime in with my bad review with the Local Register part of Amazon Payments. I was lured in by the low fees and I am a mostly happy customer of the amazon website (as long as you don’t deal with a third party seller). I have been using Square for my cc processing up to this point.

    I signed my business up for the Local Register and purchased the reader. I set up bank account information and had no issues. I made my first charge 8/20 for just over $1000 and since it was for a customer out of state I keyed in the credit card number. Charge was approved.

    The next day I expected to be able to set up the transfer of the funds to my bank account. “funds not available” I called the number provided on the app. The person explained that because the card number was keyed I would have to wait 14 days to have access to my money. Really?! 14 days?! She said it was in the fine print that I glossed over.

    Ok, fast forward to the 14th day. I set-up the transfer of the money. I checked this morning now the 15th day and it says the transfer failed since it was greater than the amount available. I called again once they opened at 8:00EST. Now the story is 4:00pm on the 15th day when I can supposedly have my money.

    I know now that they the reason they can have such a low fee is because they have had my money for 15 days to earn interest! I will hopefully get my money this afternoon and after that I am closing the account and all my credit card processing will be through Square.

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