Amazon's mobile payment system 1.75% fee

Old Aug 13, 14, 8:20 am
  #1  
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Amazon's mobile payment system 1.75% fee

It looks like amazon is competing with square and promoting a limited time 1.75% fee. Seems like a good deal for minimum spend, liquidating AGC, or utilizing a 2% card.

http://money.cnn.com/2014/08/13/tech...html?iid=HP_LN
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Old Aug 13, 14, 8:44 am
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Limited time offer through the end of 2015. They are also currently offering $10 processing credit that will offset the first $10 of processing fees charged.

Link to buy: http://www.amazon.com/Amazon-Local-R...local+register

Last edited by dboston1; Aug 13, 14 at 8:57 am
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Old Aug 13, 14, 8:50 am
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Looks like you beat me to the push by about an hour. I agree this seems to be a good way to liquidate AGC. If you get 1.75% CB or over on a AGC you can liquidate for free or a small profit all from the convenience of your own home.
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Old Aug 13, 14, 9:01 am
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Noticed the downside is the 1099-k they send out after $20000 in transactions. Could you claim $20000 in expenses to cancel that reported income out?
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Old Aug 13, 14, 9:02 am
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I read the user agreement and I couldn't find anything that would prohibit you from selling to yourself, or as mentioned, charging gift cards you have to cash those out. 1.75% isn't the worst thing in the world if you're getting good miles for them or to easily cash out gift cards, ie Ink at Staples 5x, no walmart near you.
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Old Aug 13, 14, 9:02 am
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I wonder if they'll shut you down fast, or let you do it until end of 2015. That's not a bad deal -- never have to put on pants and you can seriously step up to as much gc as you can get!

And since theres no swipe fee, you can run charges in whatever number you want.

Although it is still the highest % cost to liquidate.
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Old Aug 13, 14, 9:06 am
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T&C's:

1. 1.75% introductory rate applies only to card swipe transactions processed through the Amazon Payments account used to sign up for Amazon Local Register. Accounts that sign up after October 31, 2014 are subject to the standard rate for swiped transactions of 2.5%. Manually entered card transactions are subject to the standard rate of 2.75%. Beginning on Jan. 1, 2016, standard rates will apply to all transactions.
2. In order to ensure that the funds are deposited to your bank account on the next business day, you must set up automatic daily transfers or manually transfer the funds from you Amazon Payment account to your bank account by 4 pm local time (4 pm Pacific for AK and HI). Not all banks have the ability to receive deposits within one business day. Contact your bank for details. Reserves may apply, including for manually keyed transactions.
3. To qualify for the $10 promotion offer, you must create an Amazon Payments account and sign up to use Amazon Local Register. Amazon will credit your Amazon Payments account to offset processing fees charged to you by us until the $10 maximum credit is reached. Limit one promotional offer per qualified Amazon Payments account. This offer may not be combined with other credits or special offers. This offer is non-transferable and non-exchangeable and is not redeemable for cash. This offer is available only to customers located in, and with billing addresses in, the United States. Violation of any term or condition of this offer makes the offer invalid and the offer credit will not apply. This is a limited-time offer, and Amazon Payments, Inc. reserves the right to cancel or modify this offer at any time. Void where prohibited.
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Old Aug 13, 14, 9:06 am
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Looking through the reviews seems like you have to link it to your amazon payments account, and you have to switch it to a business account. Not sure what that will do in regards to the normal spending people use amazon payments for
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Old Aug 13, 14, 9:14 am
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Originally Posted by VizeL View Post
Looking through the reviews seems like you have to link it to your amazon payments account, and you have to switch it to a business account. Not sure what that will do in regards to the normal spending people use amazon payments for
Yea reviews make it sound like you need to establish another account on a different email address to be used for business purposes.
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Old Aug 13, 14, 9:16 am
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Originally Posted by linkerbox View Post
Yea reviews make it sound like you need to establish another account on a different email address to be used for business purposes.
Actually reports seem mixed. I saw that, but I also saw others saying you have to call and have your AP account switched over to a biz account. I'd prefer to have a separate account from my personal AP account if possible...
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Old Aug 13, 14, 9:17 am
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I too would prefer to have a separate account
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Old Aug 13, 14, 9:32 am
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Join Date: May 2014
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Wow, all the reviews are ridiculous. One star because you have to make a separate account. One guys chief complaint is the $10 price tag. Dum dum, there is a $10 credit and it's a full 1% cheaper. I'm really excited for this. As long as portals stay at >2% it makes the miles free without leaving the house. I suppose the best way to circumvent the 20,000 reporting limit is to set up accounts for family members. That or you could report everything expenses and all. I know cc points and miles are a non taxable rebate. But I'm guessing Portal cash would be taxable since it is a commission paid by a third party, not a discount on a purchase. But I would gladly pay a small amount of taxes to make a much larger amount of non taxable cc rewards.
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Old Aug 13, 14, 9:42 am
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1099-K is off putting. Last thing I need is the headache from the IRS poking around my current financials.
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Old Aug 13, 14, 9:42 am
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http://localregister.amazon.com/help...ax-information

As an Amazon Local Register merchant, you will receive a 1099-K if you have
more than both (i) 200 transactions and (ii) $20,000 in gross payments
processed through your Amazon Payments account in a calendar year.


200 transactions at $500 = $100K

Not bad. Not bad at all....
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Old Aug 13, 14, 9:44 am
  #15  
 
Join Date: Mar 2014
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If you register with a new account through the app, you're supposed to provide the SSN of the business owner for tax reporting purposes. The help item says the following:

Why is my income reported to the IRS?
With Amazon Local Register, you earn income through credit card transactions processed by Amazon Payments. Amazon Payments is required by law to report all income to the IRS using form 1099K. A copy of this form will be delivered to the mailing address you provide at the end of the year. If you have questions about this information, please consult your tax advisor.

I don't like the line, "required to report ALL income."

Edit: Vinhboy's post above seems to clarify.
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