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
Dec 23, 2011 | 1:50 pm
#121
Join Date: Oct 2011
Location: North Carolina
Posts: 613
You can read about 1099-K reporting requirements and the need for your social security number directly from Amazon Payments here:
https://payments.amazon.com/sdui/sdu...al-Regulations
There is a list of FAQs that should answer most of your questions.
Here is the first portion of the link:
"IRS Reporting Regulations on Third-Party Payment Transactions
Beginning with the 2011 tax year, new Internal Revenue Service (IRS) regulations require that U.S. third-party settlement organizations and payment processors, including Amazon Payments, file Form 1099-K to report unadjusted annual gross sales or payment volume information for customers that meet both of the following thresholds in a calendar year:
More than $20,000 in gross payment volume, and
More than 200 transactions.
IMPORTANT NOTE: Even if your account does not meet the above criteria, Amazon Payments still requires you to provide tax identification information to Amazon Payments."
Regarding your TIN/social security number. IMO, if you don't have a TIN/SSN on file with AP, it appears they would have to withhold 28% (backup withholding) from your transactions. You don't want that and neither does AP. The easiest thing for them to do is to deny payments for anyone unwilling to furnish a TIN/SSN.
https://payments.amazon.com/sdui/sdu...al-Regulations
There is a list of FAQs that should answer most of your questions.
Here is the first portion of the link:
"IRS Reporting Regulations on Third-Party Payment Transactions
Beginning with the 2011 tax year, new Internal Revenue Service (IRS) regulations require that U.S. third-party settlement organizations and payment processors, including Amazon Payments, file Form 1099-K to report unadjusted annual gross sales or payment volume information for customers that meet both of the following thresholds in a calendar year:
More than $20,000 in gross payment volume, and
More than 200 transactions.
IMPORTANT NOTE: Even if your account does not meet the above criteria, Amazon Payments still requires you to provide tax identification information to Amazon Payments."
Regarding your TIN/social security number. IMO, if you don't have a TIN/SSN on file with AP, it appears they would have to withhold 28% (backup withholding) from your transactions. You don't want that and neither does AP. The easiest thing for them to do is to deny payments for anyone unwilling to furnish a TIN/SSN.
Last edited by JATR4; Dec 23, 2011 at 2:03 pm Reason: Added content
Dec 24, 2011 | 1:20 pm
#122
Join Date: Apr 2001
Location: Tampa, FL, USA
Posts: 88
If I read AP site correcly, no one will get the 1099-K form -- unless folks have reieved $20,000+ AND more than 200 transactions.
----------
Will you file Form 1099-K for my account if I only exceed one of the two thresholds?
No. Unless you exceed both thresholds ($20,000 in gross payment volume and 200 transactions) we will not file Form 1099-K for you.
----------
Will you file Form 1099-K for my account if I only exceed one of the two thresholds?
No. Unless you exceed both thresholds ($20,000 in gross payment volume and 200 transactions) we will not file Form 1099-K for you.
Last edited by phsu; Dec 24, 2011 at 1:35 pm
Dec 24, 2011 | 2:37 pm
#123
Join Date: Feb 2009
Posts: 3,774
If I read AP site correcly, no one will get the 1099-K form -- unless folks have reieved $20,000+ AND more than 200 transactions.
----------
Will you file Form 1099-K for my account if I only exceed one of the two thresholds?
No. Unless you exceed both thresholds ($20,000 in gross payment volume and 200 transactions) we will not file Form 1099-K for you.
----------
Will you file Form 1099-K for my account if I only exceed one of the two thresholds?
No. Unless you exceed both thresholds ($20,000 in gross payment volume and 200 transactions) we will not file Form 1099-K for you.
Dec 24, 2011 | 6:46 pm
#124
Join Date: Sep 2009
Posts: 2,894
Why suggest that Amazon will act contrary to this explicit statement?
Jan 2, 2012 | 12:50 pm
#125
Join Date: Aug 2010
Posts: 146
Just to confirm, we can use amazon payments to meet some credit card spending requirements, right?
As long as we don't exceed the 20 transaction/$20K limit, we should be fine in terms of not having to declare anything like that to IRS?
Thanks
As long as we don't exceed the 20 transaction/$20K limit, we should be fine in terms of not having to declare anything like that to IRS?
Thanks
Jan 2, 2012 | 1:04 pm
#126
Join Date: May 2003
Location: CA
Programs: AA Lifetime Gold, HHonors Diamond
Posts: 2,879
It is actually 200 transactions AND $20K. Based on the 200 transactions, almost everyone should be fine.
Jan 6, 2012 | 10:05 pm
#127
Join Date: Jun 2010
Posts: 81
Amazon payment for Canadians
Just got my new Amex cc and need to fulfill the required spend in order to receive the bonus points, someone has mentioned we can use Amazon payment to send fund to family or friends. Can this work for Canadians? Would I get hit with the exchange rate from US to Canadian currency when cash it?
I don't see the option on Canadian Amazon website
Thanks
I don't see the option on Canadian Amazon website
Thanks
Jan 12, 2012 | 4:58 pm
#128
Join Date: Dec 2007
Location: PDX
Programs: AA,DL,BA,UA,SPG, and any other free trip!
Posts: 1,803
what does this translate to?
tried to send using 'an account' and got this:
Important Message:
This transaction has been denied. Please contact customer service for more information.
*********************
no chance in hell im going to call them. Anyone else getting this?
Important Message:
This transaction has been denied. Please contact customer service for more information.
*********************
no chance in hell im going to call them. Anyone else getting this?
Jan 12, 2012 | 5:13 pm
#129
Join Date: May 2008
Programs: AA PLT 2MM
Posts: 2,026
Why not see if this is 'account level' or your CC ? Try a different card (preferably one that you have used before and know should work), and/or a smaller amount as a test?
Jan 12, 2012 | 5:32 pm
#130
Join Date: Dec 2007
Location: PDX
Programs: AA,DL,BA,UA,SPG, and any other free trip!
Posts: 1,803
I used a CC that worked fine in another acct.....but i try a smaller amt.
Jan 13, 2012 | 7:23 am
#132
Join Date: Aug 2011
Programs: many
Posts: 1,437
Jan 13, 2012 | 7:25 am
#133
Join Date: Aug 2011
Programs: many
Posts: 1,437
Have you provided them your social yet?
I've been able to maintain business as usual without doing so, but I am willing to if push came to shove.
On a similar note, Ameriprise sent out new T & Cs saying they would consider person to person payments as cash advances. This they said was in response to current relevent changes in the cc industry.
I've been able to maintain business as usual without doing so, but I am willing to if push came to shove.
On a similar note, Ameriprise sent out new T & Cs saying they would consider person to person payments as cash advances. This they said was in response to current relevent changes in the cc industry.
Jan 13, 2012 | 3:56 pm
#135
Join Date: Mar 2006
Location: DEN
Posts: 814
Likewise, I just received notice from Barclays concerning my USAirways Mastercard that effective immediately the term "Cash Equivalent" (and thus considered a cash advance) includes "person to person money transfers (including but not limited to transfers facilitated over the internet)".