SkinsFan0521

Good link.

After reading that and the IRS page on it, I'd say that it doesn't include all transactions (payments made and payments received), but I'd still say that it includes payments from friends and relatives. Just because they're choosing to not charge a fee on the first $1k in received payments each month, doesn't mean that they're not treated the same from Amazon's point of view.

Of course, you could test the theory if you want, but I'd rather be safe and assume that any transaction where I received money on Amazon was considered as part of the 200.

I think the biggest question at this point is going to be how lenient Amazon will be with this new service. Will they let it go on like AP since we're paying the 1.75% just like they asked or are they going to crack down on it for some reason? Personally, I'd think that they'l let you hit it hard since they're going to be charging the 1.75% fee. They're obviously happy with that fee since they set it, I just don't know how happy they're going to be at all of these sole proprietors racking up just under 200 transactions at $1k-$3k per transaction. I could see them being much more forgiving if you actually have an EIN that you're processing payments through rather than a SSN.

That's my .02

jtrue28

Maybe I'm thinking too simplistic here...

So I buy the card reader and setup a brand new AP account for my "Jtrue28 Consulting" company using my SSN.

Then I can just swipe my DL AMEX or my wife's DL AMEX where the payments will then be deposited into our bank account, less the fees. Then pay the AMEX bills.

If this truly isn't going to kick up any red flags between Amazon or AMEX....this eliminates the trips to pick up gift cards.

Am I thinking about this wrong?

SkinsFan0521

Nope. That's the theory, but we'll have to see how it works in practice.

But, it's still a 1.75% fee, so it's not like it's just free points.

retired7328

buy the AGC's thru a portal and you can make 3.2% approx

SkinsFan0521

True... when there is a bonus promotion. I believe the best offer right now is 2.7%. Correct me if I'm wrong.

pillow25

Hmmm...reading the T&C https://payments.amazon.com/sdui/sdu...?useragreement

Section 3.8 - Compliance with Law and Specifications. You will at all times adhere to all law applicable to your use of the Service. Without limiting the foregoing, you may not act as a payment intermediary, aggregator or service bureau or otherwise resell the Service on behalf of any third party, including without limitation the handling, processing, and transmission of funds for any third party. Please review our Acceptable Use Policy for a list of prohibited activities. You will comply with any technical and operational specifications provided or made available by us from time to time with respect to the Service (the "Specifications").

Acceptable Use Policy http://https://payments.amazon.com/h...ble-Use-Policy

This Acceptable Use Policy lists items and activities that we prohibit because they may be illegal or inappropriate in connection with the use of our services. It applies to any person or entity using our payment service and any transactions that we are asked to process. Please take a moment to familiarize yourself with this policy. We may modify this policy at any time.

If we believe or suspect that any transaction violates this policy or is otherwise illegal or unsuitable, we may take any corrective action that we deem appropriate, including blocking the transaction, holding funds associated with a prohibited transaction, suspending or restricting the use of our service, terminating the accounts of violators, or any other corrective action.

Cash or cash equivalent instruments - including but not limited to money orders, travelers' checks, and generally accepted stored value products.

Wonder if they could use this to shut down your account if you used it to process gift cards. On the other hand, you could claim that someone used a GC to "pay you".

nrdk

Correct, so roughly a 1% portal gain + card points gain (2%/2.2% or 1pt/$).

The more I think about this, the more there seems to be a lot of taxation unknowns. Fun to think of minting ~150k+ miles a year, but weighed vs the potential pain of an audit doesn't seem worthwhile.

kocoliza

Maybe a dumb question, but what does Amazon have to lose if you are "paying yourself" with, say, AGC? They are still making 1.75% right? Why would they want to shut you down?

nrdk

I read the above to mean providing cash or cash equivalent and accepting payment using their service.

SkinsFan0521

That's what I'd say too. They're still making the 1.75% that they set as the fee. My only thought on why they'd want to shut you down is that they're going to be losing money on that 1.75%. That is, after all, why it is only set at that price for the promotional period until Jan 1, 2016. No matter how big you are, I don't think that they're negotiating the fees down to 1.75%, so they're most likely taking a hit on it just to gain market share.

JerMah

Doesn't mean they can't if they want to. They can report at 1 transaction and 99 cents. Don't believe everything you read. They can do whatever they wish. They are required to report at 200/$20k. I'm sure those T&C also state they can change said T&C at their will.

retired7328

Keep it small 12 -24 transactions per year 2-3k consulting fees.....risk of an amazon audit seem low ....a few "consulting" invoices. no 1099 either...another arrow in the quiver

rismoney

other cards pay 5% at amzn too...

VizeL

This would be great if it stayed at 1.75%.....after Jan 1st 2016 I see usage dropping drastically. It could still be -somewhat- profitable...but then at that point theres no difference in square vs this, vs paypal myreader. (or very little).

We can only hope they get into a war and keep lowering

hamhead

Same reason Square shuts down people when they charge 2.75%.

Money Laundering and the fear of getting slapped with multimillion dollar fines by the Government.