Amazon Pay Overview
In this review of Amazon Pay, we examine how the service allows businesses to accept payments using customers’ stored Amazon credentials, making checkout faster and more convenient. We look at how Amazon Pay works, including its payment gateway integration, support for recurring billing, fraud protection, and international transactions, while also evaluating its fee structure and contract terms. The review highlights merchant feedback on issues such as account fund holds, delays in deposits, and customer service responsiveness. By the end, you will have a clear understanding of whether Amazon Pay provides enough value, trust, and ease of use to be the right choice for your business.
Leadership
About Amazon Pay
Also known as Amazon Pay, Amazon Payments is a payment processing service offered by the e-commerce giant Amazon. Launched in 2007, the service allows customers to use their Amazon accounts to make purchases on third-party websites. Amazon Pay has integrated with numerous e-commerce platforms, providing a seamless checkout experience. In recent years, Amazon Pay has expanded its reach, partnering with companies like Stripe and BigCommerce to enhance its service offerings. The platform supports a variety of payment methods, including credit and debit cards, as well as ACH payments. In 2019, Amazon Pay introduced voice payments through Alexa, further integrating its services into the everyday lives of its users. The service has continued to evolve, with recent enhancements aimed at improving security and reducing friction in the payment process.
A Single E-Commerce Umbrella
This Amazon Pay review is only going to focus on the Amazon Pay business account used by businesses for accepting payments from customers. At the time of a previous update, Amazon offered two different services called “Checkout by Amazon” and “Amazon Simple Pay” that served separate business types. Since then, Amazon Simple Pay was discontinued, and Checkout by Amazon was discontinued in April 2017. Amazon now seems to group all of its e-commerce checkout options under the name “Amazon Pay.”
Merchant Services & Product Offerings
Payment Processing
Amazon Pay allows customers to store their credit card and shipping information in their Amazon account, enabling them to check out on Amazon Pay-enabled websites without re-entering payment details. Similar to PayPal, users can pay with stored information or enter new payment information during checkout. Additionally, Amazon Pay supports voice-activated payments through Alexa. This service is sometimes referred to as “Amazon Login and Pay.”
In-App Purchases
Amazon Pay supports in-app purchases, making it easier for app developers to integrate payment processes. This benefits from Amazon’s large user base and the trust it has established with its customers.
Alexa Skill Payments
Amazon Pay integrates with Alexa skills, allowing users to make voice-activated transactions. This feature enables activities like ordering food or paying bills without manually entering payment details.
Subscription Services
Amazon Pay offers solutions for subscription payments, facilitating recurring billing for services such as digital media subscriptions, subscription boxes, and premium memberships.
Fraud Protection
Amazon Pay includes fraud protection, leveraging Amazon’s robust security protocols. This is crucial for online businesses to maintain customer trust and protect their operations.
Multinational Support
Amazon Pay supports multiple currencies and is available in several countries, making it a viable option for businesses with international customers.
Pay with Amazon Pay Button
Merchants can integrate the ‘Pay with Amazon Pay’ button into their websites, allowing customers to complete transactions without leaving the site.
Customer Insights
Amazon Pay provides detailed transaction analytics and customer insights, helping merchants understand customer behavior and optimize their sales strategies.
A Discontinued Mobile Payment Service
On August 13, 2014, Amazon launched a new service called Amazon Local Register. Similar to Square, the service utilized a free app and a swiper that could be plugged into phones or tablets to enable merchants to accept payments. Amazon Local Register has since been discontinued.
Customer Reviews & Sentiment
"Adding Amazon Payments gave our customers another trusted option at checkout. Transactions have been smooth, and we didn’t need to overhaul our site to make it work. It’s been a low maintenance, high value addition to our payment options."
Consumer Complaints about Amazon Pay
Despite its size, there are relatively few negative Amazon Pay reviews online. The majority of complaints seem to originate from consumers rather than merchants. These consumer complaints often target the websites utilizing Amazon Pay, attributing issues to them rather than Amazon Pay itself. Share your own Amazon Pay review in the comments below.
Merchant Concerns with Amazon Pay
Among the available merchant Amazon Pay complaints, a significant portion revolves around fund holds by Amazon or perceived shortcomings in customer service. Some complaints may stem from businesses misunderstanding how Amazon Pay manages payments. A few reports mention glitches in the account setup process. Overall, it seems that the vast majority of Amazon Pay clients do not encounter major issues with fund holds or technical issues, but 31 users of the service accuse Amazon Pay of being a ripoff or scam.
Amazon Pay Legal Matters
In 2023, Amazon Pay faced a lawsuit from a client regarding account deactivation. The status of the suit remains ongoing. Dissatisfied clients seeking alternatives to legal action can consider reporting issues to relevant supervisory organizations.
Amazon Pay Customer Support Channels
Amazon Pay primarily offers customer support through email, but the company does provide a phone number for users who are logged into their accounts.
Client Satisfaction Ratings
| PaymentPop | 5 |
|---|---|
| BBB Rating | N/A |
PaymentPop Rating for Amazon Pay
Negative Feedback
There are no negative reviews published about Amazon Pay on the PaymentPop website.
Positive Feedback
Adding Amazon Payments gave our customers another trusted option at checkout. Transactions have been smooth, and we didn’t need to overhaul our site to make it work. It’s been a low maintenance, high value addition to our payment options.
No BBB Profile
Amazon Payments does not have a dedicated Better Business Bureau profile; however, Amazon itself holds a “B+” rating with the BBB and has been accredited since 1996. Given the fact that this profile is not an accurate representation of merchant satisfaction with Amazon Payments, we will not factor a BBB report into the company’s overall rating. In any case, readers should not rely on the BBB alone to assess a company’s trustworthiness, because there are reasons to be skeptical of the BBB’s rating system.
Card Processing Rates & Fees
Transparent Pricing
Amazon Pay adopts a straightforward approach with no setup fees, monthly fees, or cancellation fees. The service offers web-based, mobile, and voice payment solutions. For domestic transactions, a processing fee of 2.9% plus $0.30 per transaction applies, while cross-border transactions incur a fee of 3.9% plus $0.30. Additionally, Amazon Pay imposes a disputed chargeback fee of $20. Initially, all Amazon Payments Business Accounts had a $500 limit for receiving funds until a credit card was added, enabling businesses to receive up to $10,000 in payments. If a verified bank account was also added, this limit could be significantly increased or removed entirely. While these limits may still be applicable, confirmation is currently unavailable.
Flexible Contracts
In general, Amazon’s rates are comparable to those of PayPal, Stripe, and other online payment processors. Reviews of Amazon Pay seldom cite specific issues with the set rates. This, combined with the absence of hidden fees and long-term contracts, positions the service as a highly cost-effective option, even when compared to some of the cheapest merchant account providers.
Amazon Pay’s rates are fairly straightforward
Employee Reviews & Sales Practices
Transparent Marketing and Rate Quotes
Amazon uses no misleading sales tactics while marketing its Amazon Pay service. The service is primarily marketed through Amazon’s traditional channels, and the company does not engage in any deceptive rate quoting that is apparent to this reviewer. In fact, Amazon differs from many providers by quoting its specific per-transaction fees in plain view on its website, which helps to realistically set client expectations. In addition, there are no Amazon Pay complaints indicating that Amazon misrepresents its fees or fails to disclose important terms. We will therefore assign Amazon an “A” in this category, but if you suspect that Amazon is charging you undisclosed fees, we recommend seeking a free third-party statement audit.