Nov 10, 2013, 11:26 am
Last edit by: mcdullhk88
Dead as of 10/13/14
FAQ's
Is Amazon Payments treated as a cash advance? No CC issuer has been reported as treating an AP transaction as a cash advance unless the sender selected "Payment is for Cash Advance" on the Send Money screen.
What does it mean when your payment is "pending"? Your payment will be reviewed. We are unsure whether this review is done by a human or computer. It should take less than 24 hours but is usually within minutes.
How should you describe your payment? "Goods or services" will allow you to charge with a CC and it will not be treated as a cash advance. Note: If you choose cash advance, it may be treated as such by your CC issuer; always choose Goods/Services. There is no reason to put anything in the optional description field - leave it blank.
What is the monthly limit for sending CC payments? $1,000 per calendar month per AP account
What is the monthly limit for receiving CC payments? $1,000 per calendar month per AP account
What if it is not allowing me to send/receive more than $500 or any at all? You probably have not verified your bank and/or added a CC. In order to get the full $1,000 allowance for sending and receiving you must have a bank verified AND a CC added to your account as a payment method.
Does AP qualify for special spending categories? Specifically it qualifies for Discover's (usually 4th quarter) category of online purchases but so far, not Chase's "5% CB on Amazon.com purchases." Refer to thread for other options.
Can you get shutdown? Yes.
How do you get shutdown? No one knows. Anecdotes are found throughout the thread. Some suspicious behavior that MIGHT get your AP account(s) shut down is listed below.
Which transaction is most advisable? A -> B -> C -> A (see here)
Are any fees charged during this process? No, not by Amazon Payments. If your transaction is treated as a cash advance by your card issuer--fees are possible. Beware and always double check that goods/services is selected!
Can you liquidate Amazon GC via AP? NO!
Can you liquidate other gift cards via AP? Yes. Note that you cannot liquidate the full value of a GC because amazon places a $1 hold while it verifies the validity of the GC. You can sometimes (not always) avoid the hold by entering an incorrect expiration date for the GC when adding it to your AP account, and after you have added it, go to "Edit my account settings," then to "Add edit or delete my credit cards" and edit the expiration date there.
When does the month end? It appears as if Amazon is on pacific time, so midnight PDT/PST is when the month resets.
It bears repeating that no one knows the methodology amazon uses to police AP transactions, determines which transactions violate its T&Cs, or identifies violators. However, various people in this thread and elsewhere have confirmed that their AP account(s) were shut down for the following reasons:
Additionally, we have updated the terms and conditions of our User Agreement (https://payments.amazon.com/help/Personal-Accounts/User-Agreement-Policies/User-Agreement) that apply to your use of the products and services provided by Amazon Payments. Our updated User Agreement revises certain terms (including, among other things, the elimination of person-to-person payments). Our new User Agreement will become effective on October 13, 2014, which is more than 30 days from when we first posted our updated User Agreement. By continuing to use our services after October 13, 2014, you are agreeing to be bound by the terms and conditions of our new User Agreement.
Is Amazon Payments treated as a cash advance? No CC issuer has been reported as treating an AP transaction as a cash advance unless the sender selected "Payment is for Cash Advance" on the Send Money screen.
What does it mean when your payment is "pending"? Your payment will be reviewed. We are unsure whether this review is done by a human or computer. It should take less than 24 hours but is usually within minutes.
How should you describe your payment? "Goods or services" will allow you to charge with a CC and it will not be treated as a cash advance. Note: If you choose cash advance, it may be treated as such by your CC issuer; always choose Goods/Services. There is no reason to put anything in the optional description field - leave it blank.
What is the monthly limit for sending CC payments? $1,000 per calendar month per AP account
What is the monthly limit for receiving CC payments? $1,000 per calendar month per AP account
What if it is not allowing me to send/receive more than $500 or any at all? You probably have not verified your bank and/or added a CC. In order to get the full $1,000 allowance for sending and receiving you must have a bank verified AND a CC added to your account as a payment method.
Does AP qualify for special spending categories? Specifically it qualifies for Discover's (usually 4th quarter) category of online purchases but so far, not Chase's "5% CB on Amazon.com purchases." Refer to thread for other options.
Can you get shutdown? Yes.
How do you get shutdown? No one knows. Anecdotes are found throughout the thread. Some suspicious behavior that MIGHT get your AP account(s) shut down is listed below.
Which transaction is most advisable? A -> B -> C -> A (see here)
Are any fees charged during this process? No, not by Amazon Payments. If your transaction is treated as a cash advance by your card issuer--fees are possible. Beware and always double check that goods/services is selected!
Can you liquidate Amazon GC via AP? NO!
Can you liquidate other gift cards via AP? Yes. Note that you cannot liquidate the full value of a GC because amazon places a $1 hold while it verifies the validity of the GC. You can sometimes (not always) avoid the hold by entering an incorrect expiration date for the GC when adding it to your AP account, and after you have added it, go to "Edit my account settings," then to "Add edit or delete my credit cards" and edit the expiration date there.
When does the month end? It appears as if Amazon is on pacific time, so midnight PDT/PST is when the month resets.
It bears repeating that no one knows the methodology amazon uses to police AP transactions, determines which transactions violate its T&Cs, or identifies violators. However, various people in this thread and elsewhere have confirmed that their AP account(s) were shut down for the following reasons:
- Associating one credit card number with more than one AP account (Be Careful if authorized user card has the same number as the primary card holder - in some instances the CC numbers are completely different)
- Associating one bank account with more than one AP account
Amazon Payments
Sep 23, 2013 | 11:18 am
#2523
Join Date: Sep 2011
Posts: 268
Sep 23, 2013 | 11:29 am
#2524
Join Date: Jan 2013
Location: NYC
Posts: 415
Last year around this time, AP counted for me on Discover. That's for online shopping. With the quarter bonus on Chase Freedom being Amazon.com specifically, well, all I can say is I will be taking a chance. No prior experience for that.
Sep 23, 2013 | 12:36 pm
#2525
Join Date: Feb 2013
Programs: All of them!
Posts: 325
PP officially allows you to have 2 accounts per person, a personal and a business account. I have two (for the business account, I just entered my name for the business name as a sole proprietor). No idea what happens if you try to open more than two but personally I wouldn't risk it.
Sep 23, 2013 | 9:11 pm
#2528
Join Date: Aug 2012
Posts: 496
I'm not sure that is accurate, although I'm not a tax expert. The 1099K is a "Payment Card and Third Party Network Transactions" reporting form. Suffice it to say that if you conduct transactions within the limits on the form, you will have one of these forms filled out. Take a look at the form online and also take a look at AP's explanation of when they report via the 1099K.
Sep 24, 2013 | 10:13 am
#2532
Join Date: Jul 2013
Posts: 95
I would use different CC numbers for each account.
Sep 24, 2013 | 11:51 am
#2533
Join Date: Jun 2013
Location: ORD
Posts: 220
it seems relatively safe if people do A -> B -> C -> A (A and C are the same person with different emails and bank accounts and credit numbers). However, since A and C use the same SSN, won't it raise an issue that the person could receive >$20000 a year and would be reported to IRS?
Sep 24, 2013 | 1:12 pm
#2534
Join Date: Feb 2013
Location: NY
Posts: 233
*PayPal says that "gift" purchases (ie: between family and friends) is not included in their formula. Only legitimate payments for goods and services.
Sep 24, 2013 | 2:19 pm
#2535
Join Date: Apr 2010
Location: LAX
Posts: 547
it seems relatively safe if people do A -> B -> C -> A (A and C are the same person with different emails and bank accounts and credit numbers). However, since A and C use the same SSN, won't it raise an issue that the person could receive >$20000 a year and would be reported to IRS?