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
Jun 11, 2012 | 8:04 am
#421
Join Date: May 2008
Location: Las Vegas since 11/2023
Programs: No status anywhere anymore, it was fun while it lasted
Posts: 4,648
[Moderator edit]
Suggest the mod investigate and perhaps delete the post.
Suggest the mod investigate and perhaps delete the post.
Last edited by mia; Jun 11, 2012 at 9:33 am Reason: Personal attack
Jun 11, 2012 | 9:01 am
#423
Join Date: Mar 2004
Location: MSY
Programs: NW Gold and now Delta Gold
Posts: 3,072
Maybe I'm just too slow to get the joke but someone recently recommended AP to me to get up credit card spend, and while I don't want to say anything to someone I respect, at first sight it appears to be a TERRIBLE idea. It's my understanding that Amazon (and Paypal) will be required to report on a 1099 all the payments received in 2012 and future tax years. So churning a lot of money through AP is going to trigger either an unfairly high tax bill or an expensive audit, from the look of it. If I'm mis-understanding something, feel free to heckle or PM or whatever, but we only accept legit donations and payments. This post I've quoted below is probably a joke but cooking services are 1) taxable services, and 2) in my parish (county) if it's found out that you were charging for these services, you will also be fined heavily on the local level because you are required to have $1 million in business insurance plus a business license plus a $100K kitchen. (In other words, you are supposed to pay someone off to run cooking/catering services, so it would be stupid beyond belief to have paper trail that you performed such a service.) I knew someone who tried it, obviously, and they got caught after a few years working for cash. Putting it right there in black and white with a payment service (even as a joke) seems unbelievably idiotic to me. But maybe I'm the idiot here. It wouldn't be the first time. Maybe you can just tell the IRS, "Hey man, I was just kidding around with the wife." Maybe they're just a big warm-hearted understanding organization like that...who knew? Not me!
Jun 11, 2012 | 9:32 am
#424
Flyertalk Posting Legend Moderator: Credit Card Programs, American Express, Capital One, Chase, Citi, Diners Club, Eco Travel, Signatures
Join Date: Jun 2003
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Jun 11, 2012 | 9:58 am
#425
Join Date: Oct 2009
Location: Land of the parrots and parrotheads
Programs: Several dozen
Posts: 4,820
Jun 11, 2012 | 1:36 pm
#426
Join Date: Feb 2012
Location: LAX
Programs: AA, TY, UR, UA, US, WN, MR, SPG
Posts: 1,453
It's my understanding that Amazon (and Paypal) will be required to report on a 1099 all the payments received in 2012 and future tax years. So churning a lot of money through AP is going to trigger either an unfairly high tax bill or an expensive audit, from the look of it.
I use it to pay my father $500 per month towards an ~$8000 debt I owe him. In 16 months, it will be payed off and I won't send him any more money. But for calendar year 2012, there will be 12 transactions and $6000. Will either of us be looking at a tax bill for that? I didn't think so, but if so, I'll just give him cash. I just like having the record (and the points, of course). But 8K points isn't worth anywhere near a 1099 on $8K.
Jun 11, 2012 | 2:13 pm
#427
Join Date: Apr 2012
Posts: 130
Is it not only for >200 transactions or >$20K annually? That's what the Amazon site specifies.
I use it to pay my father $500 per month towards an ~$8000 debt I owe him. In 16 months, it will be payed off and I won't send him any more money. But for calendar year 2012, there will be 12 transactions and $6000. Will either of us be looking at a tax bill for that? I didn't think so, but if so, I'll just give him cash. I just like having the record (and the points, of course). But 8K points isn't worth anywhere near a 1099 on $8K.
I use it to pay my father $500 per month towards an ~$8000 debt I owe him. In 16 months, it will be payed off and I won't send him any more money. But for calendar year 2012, there will be 12 transactions and $6000. Will either of us be looking at a tax bill for that? I didn't think so, but if so, I'll just give him cash. I just like having the record (and the points, of course). But 8K points isn't worth anywhere near a 1099 on $8K.
Beginning with the 2011 tax year, Internal Revenue Service (IRS) regulations require that U.S. third-party settlement organizations and payment processors, including Amazon, file Form 1099-K to report unadjusted annual gross sales information for sellers that meet both of the following thresholds in a calendar year:
More than $20,000 in gross sales, and
More than 200 transactions.
so I think you're safe.
Jun 12, 2012 | 4:45 pm
#428
Join Date: Mar 2004
Location: MSY
Programs: NW Gold and now Delta Gold
Posts: 3,072
Really! They told us $600 in a calendar year...I guess time will tell. Quite a significant difference between $600 and $20K. Oh, wait, I think I know. The $20K may be for ITEMS that are sold. But it's $600 for services and has been for years, at least for writing services. I think it's gotta be the same for most services...
As for repaying money you owed to your dad, if they questioned it, I don't think you would have a problem because presumably you could find your dad again and get him to confirm that it was repayment of an interest free loan. He would have a tax liability if you paid interest on the loan, of course, but since it's your Dad, I for one will assume the loan is interest free.
As for repaying money you owed to your dad, if they questioned it, I don't think you would have a problem because presumably you could find your dad again and get him to confirm that it was repayment of an interest free loan. He would have a tax liability if you paid interest on the loan, of course, but since it's your Dad, I for one will assume the loan is interest free.
Jun 12, 2012 | 5:00 pm
#429
Join Date: Jun 2011
Location: Around The World
Programs: ALL :)
Posts: 384
$600
Really! They told us $600 in a calendar year...I guess time will tell. Quite a significant difference between $600 and $20K. Oh, wait, I think I know. The $20K may be for ITEMS that are sold. But it's $600 for services and has been for years, at least for writing services. I think it's gotta be the same for most services...
As for repaying money you owed to your dad, if they questioned it, I don't think you would have a problem because presumably you could find your dad again and get him to confirm that it was repayment of an interest free loan. He would have a tax liability if you paid interest on the loan, of course, but since it's your Dad, I for one will assume the loan is interest free.
As for repaying money you owed to your dad, if they questioned it, I don't think you would have a problem because presumably you could find your dad again and get him to confirm that it was repayment of an interest free loan. He would have a tax liability if you paid interest on the loan, of course, but since it's your Dad, I for one will assume the loan is interest free.
Jun 12, 2012 | 9:55 pm
#431
Join Date: Jun 2011
Location: Around The World
Programs: ALL :)
Posts: 384
Jun 13, 2012 | 2:10 pm
#432
Join Date: Jul 2011
Posts: 1,657
Here's a logistical question. People have sent me money through AP. I want to withdraw that money into my "checking" account -- but it's technically a money market checking account via UBS. That, for whatever reason, can't be instantly verified using the Amazon function. No big deal, I'll verify manually, with the <$1 deposits, right? But that options is "grayed out" so I can't select it! How do I verify this account so I can get the money out of AP?!
Jun 13, 2012 | 3:30 pm
#433
Join Date: May 2008
Programs: AA PLT 2MM
Posts: 2,026
Here's a logistical question. People have sent me money through AP. I want to withdraw that money into my "checking" account -- but it's technically a money market checking account via UBS. That, for whatever reason, can't be instantly verified using the Amazon function. No big deal, I'll verify manually, with the <$1 deposits, right? But that options is "grayed out" so I can't select it! How do I verify this account so I can get the money out of AP?!
Yeah, bad user interface on that part.
Jun 13, 2012 | 6:25 pm
#435
Join Date: Mar 2004
Location: MSY
Programs: NW Gold and now Delta Gold
Posts: 3,072
But I am an independent contractor for Amazon payments. I'm sure as heck not an employee. Although I've only sold two items there this year...still I'm definitely a contractor. You are saying if someone NEVER sold a dime at Amazon they could use Amazon payments to transfer thousands of dollars back and forth? So that's the booby prize for not having anything ever that anyone would want to buy? :-)
$600 is the amount you receive a 1099 for Independent Contracting. If you are an IC for a company and you make over $600 they legally have to report it to IRS. You are not an IC for Amazon Payments so there standing rule about: 20K would apply as that appears to be the new rule for Paypal as well.