Most people know Amazon. Amazon is responsible for everything, from the largest online marketplace in the world to cloud computing solutions via AWS. Amazon Pay is Amazon’s payment service provider.
Amazon Pay isn’t as well-known than some of the PSPs available today (like PayPal), but it’s still a popular choice for many ecommerce store owners. It’s easy to use and allows customers to make purchases from your site quickly. You can even make recurring payments and donate online.
Amazon offers the advantage of processing your payment in-line, which is unlike other payment processing options. Your customers will not have to leave your site to make a payment with Amazon Pay. Amazon also integrates with many online store builders like Shopify and Magento.
This is everything you need about Amazon Pay.
What is AmazonPay? An Introduction
AmazonPay allows customers to pay online in a variety of ways. Clients such as Canon and Lenovo already use this easy-to-use online payment solution. It replaces other services such as Checkout by Amazon and Simple Pay By Amazon. Amazon Pay is not a replacement for the mobile payment service, even though Amazon Local Register has been discontinued.
Amazon Payments or Amazon Pay is very popular. It’s easy to sign up for the service and integrate it into your site. To use Amazon Pay, you must have an Amazon Seller account. However, you do not necessarily need to list products on Amazon. If you use Amazon Pay, we recommend listing on Amazon along with your eCommerce website. This is a great way to attract customers.
Amazon Pay has an acceptable use policy. This outlines the products that you are not allowed to sell to this payment method. You can accept debit card, credit card, and bank account payments from customers if you adhere to this policy. Customers who make a purchase with your small business store will get an easy online payment experience.
Amazon Pay payment processing offers another benefit: the customer has access to Amazon’s A-to-Z Guarantee. Customers can save even more time by using their Amazon account billing and shipping information when they buy something. This is a time-saver compared to Stripe.
Amazon Pay Pros & Cons
Amazon Payment has the same pros and cons as any other payment processing services. You get a service that is easy to use and easily accessible. Amazon Pay does not support PayPal and transaction fees can be very high. Let’s look closer at the pros and cons of this service.
Amazon Pay Pros
- It is very easy to use
- Access to Amazon Fraud Protection included
- Customers can save time by entering their shipping details
- Amazon brand recognition encourages trust
- Great customer service is possible with a great setup
- Integrates with all major ecommerce platforms
- Customers can get their orders quickly and conveniently
- There are no early termination fees
- Great for businesses selling on Amazon and other online marketplaces
Amazon Pay Cons
- PayPal payments are not supported
- To make a payment on Amazon, customers need to have an Amazon account
- Amazon Pay believes you are not following the rules and may increase your risk of being shut down
- Mixed reviews about functionality
Amazon Pay Features
Amazon Payment is not as well-known as PayPal, but it is quickly becoming a popular option in many industries. Amazon Pay is currently only available for merchants in Japan and the United States. Amazon Pay requires that you have a physical presence in the country you will be processing transactions. A street address, credit card and bank account are required.
Amazon Pay has many useful features that will make it easier for payment service providers. Amazon Pay features include everything you need, from recurring billing support to inline checkout and fraud protection. Amazon Pay offers merchants a payment protection policy, which helps protect you against any chargeback fees for fraudulent transactions.
Additional features include:
- Voice transaction support Customers can now make donations and purchase using their voice. If your customer owns an Alexa device, you can create an Alexa skill and add Amazon Pay as a skill to allow voice purchase. Amazon Pay will not offer voice options without an additional cost. This is something to keep in mind when budgeting.
- Charitable donations Nonprofits can receive donations via Amazon Pay. If you are a nonprofit organization, there is support for discounted rates. This is a great bonus and something not all payment service providers can offer. It’s well worth looking into it.
- Many Integration Options: With this service, there are many options to integrate a selling solution. There are plug-and-play integrations that integrate with popular eCommerce software, as well as custom solutions that meet the requirements of every enterprise. The integrations are customizable to meet your business and technical requirements.
- Amazon Seller Central Merchants who use Amazon Pay have an impressive user interface on their backend. For conversions, the Amazon Seller Central dashboard is available to Amazon Pay merchants. You will find all the information that you need to improve your online sales. You can view reports and claim, as well as check if you have any pending orders. You can find information about returns, buyer messages and premium/nonpremium items that have yet to be shipped.
What is Amazon Pay’s Difference from Other Services?
Amazon Pay may look familiar if you have used Amazon services to make payments or conduct transactions in the past. This service is actually an amalgamation of several discontinued Amazon services into one. Amazon Payments and Pay with Amazon are both previous versions of the AmazonPay environment. They have the exact same features and rates.
Checkout by Amazon, on the other hand was a service you could use to sell digital and physical products online. Both services offered basic features, but Amazon Pay offers a more powerful integration with merchant websites.
Amazon Pay is also available. Amazon Simple Pay gave merchants the ability to sell any kind of digital product online. Simple Pay could also be used to collect donations on behalf of a non-profit. Although Checkout by Amazon offered similar features, Simple Pay did not support physical or tangible goods. In 2015, Amazon Simple Pay was discontinued and account holders moved to Amazon Pay.
Amazon Local Register is the only feature Amazon Pay can’t replace. This solution used a plug in swiper and smartphone applications to allow payments via a tablet or smartphone. Despite its obvious popularity, Amazon Local Register stopped accepting new customers as of the 30 th October 2015. In 2016, the service was shut down completely and Amazon has yet to come up with a replacement.
Amazon Pay Pricing
Many companies must decide how much money they can afford before they use an online payment service. You probably don’t have the budget to pay huge monthly fees, no matter how small or large your business is.
Amazon’s pricing structure, however, is very transparent and easy to understand. Amazon charges are flat-rate, unlike other ecommerce solutions. It is easy to use and understand, and prices are determined based on where the buyer is located and what type of transaction they are.
If you are using Amazon Pay, there are three types of transaction fees that you should be aware. These are:
Mobile and web
For every transaction that you make via a mobile or web application, there is a 2.9% processing charge and a $0.30 authorization cost. If you are dealing with cross-border transactions, you can pay a 3.9% fee and the $0.30 authorization fees. International sales shouldn’t come with extra fees.
Alexa activated purchases
The processing fee for purchases made through Alexa smart assistant increases to 4.0% if shipping domestically. There is also a $0.30 authorization charge. The authorization fee is the same, but the processing fee will increase to 5.0% if you are selling internationally.
Amazon Pay can be a great way to save money if your organization is a charity. This will result in a 2.2% transaction charge. You’ll also need to pay $0.30 authorization fees for each transaction.
The processing fee for selling internationally with your charity group or accepting donations from all over the world goes up to 3.2%. However, the authorization fee stays the same.
Amazon Pay is quite affordable when it comes to costs. Amazon Pay isn’t like other traditional payment processors. There are no annoying account set-up fees. There are no unexpected monthly fees and PCI fees. To access your new checkout process you don’t need to sign a contract and there are no early termination charges.
Amazon charges fees for transactions that you make. This makes it easy to manage your costs. You only pay for the services you use. Processing fees are a percentage on every transaction amount. The cost of the service depends on how your customers pay and whether they use gift cards.
How to Get Paid
When you first add AmazonPay to your Shopify website, it is important to remember that you will need to wait slightly to receive any money. Amazon’s reserve system holds all payments for 14 days.
This means you won’t be able to access your Amazon Customer money for 14 days. After that, there will be another hold on your account for approximately 7 days. You will also receive a disbursement schedule each day you sell. Amazon Pay allows business owners to resolve a chargeback by paying a $20 dispute transaction cost and tax.
Amazon Pay is a card_processor solution that makes it frustrating to have to wait for your money. You will need to make sure that your bank account and seller account are linked before you can use credit card processing technology. This is necessary in order to receive funds from your ecommerce website. Amazon asks that business owners provide accurate credit card information in the event of a negative account balance.
Amazon makes it easy to open a merchant account for credit cards processing. To get started, you don’t have to sign a long-term contract. Using the service is simple and month-to-month. If you decide to stop selling, you don’t need to cancel your account. You only pay for the transactions that you make.
Amazon offers an easy way to cancel your Amazon account. You can find a link to contact seller support and they will close your account for you. There are no early termination fees. Amazon allows you to close your account at any time without penalty. This is an excellent alternative to other payment processors that you will find on Google.
Amazon Pay Customer Service
Amazon Payment is a great way for businesses to sell online. However, you might need support. When you are looking for merchant accounts, customer service is something that you should check. You will not be able process payments or collect money from customers if your sales solutions go wrong.
Check out the Help section before you create an Amazon account. Amazon Pay recently consolidated all its resources for seller assistance into one online page. You can find information about how to handle a chargeback, as well as other helpful information. You can also find information for customers and merchants in the help section. This page is available to direct clients to if they have any issues with their payment process.
Amazon Seattle has documentation that can be used to assist you in setting up integrations. For example, a link to a third-party shopping portal compatible with Amazon Pay or its payment gateway. Learn how to use SDKs. If you need to resolve any issues with your Amazon Pay account, you can visit the Help section. If you require assistance with cashback, however, traditional services are available.
All channels of customer service are available for online retailers, including email and telephone. You must be signed up for an Amazon account to access these options.
Amazon Pay: Common Problems
AmazonPay has many positives. The service is easy to use and most people love it. There are some issues that you may notice as you continue to use the service. We mentioned that Amazon can take a while to send your funds, which is a problem for business owners who need fast payment.
Amazon is also reported to have kept funds for up to 90 days without giving notice. You may be able to resolve these issues quickly in some cases. Some cases can drag on for months and could prove to be a disaster for your company.
Customers must also go through the approval process to sell on the internet. There is a lot of frustration online. Some clients are often asked to submit additional documents once their approval has been granted. Amazon Pay’s fraud allegations are a common concern.
Online, there are many cases of companies complaining about Amazon accusing them of selling counterfeit goods or fraud. Amazon can accuse you of criminal activity, which could have serious consequences for your company and for you personally. Amazon can also block your account to prevent you from selling if they suspect any wrongdoing.
Amazon Pay: Should You Use It?
Amazon Pay is a payment solution that’s digitally enabled. It’s important to remember that your customers are already familiar with Amazon and will be comfortable buying from Amazon accounts. There are some limitations to working with Amazon Pay.
You can’t accept payments via PayPal when you sell on Amazon. This is a major problem for one of the most used online payment methods. Although you might be able bypass this problem by using Amazon or other gateways that support PayPal, this may result in a more difficult checkout for both you and your customers.
Amazon can be more expensive than some of its competitors. It is important to remember that Amazon doesn’t charge additional fees or set recurring prices. Selling through Amazon is much easier because of this. It makes sense to use Amazon to connect with customers if you are already an Amazon seller.
Amazon Payment provides significant benefits for sellers who wish to manage transactions quickly, view reports quickly, and receive customer support as soon as possible. The service even offers protection against fraud-related cashback claims.
Amazon Pay doesn’t require customers to leave your site to make a purchase. This could lead to them finding the checkout process easier and more appealing. Your customers will be less likely to encounter friction during the purchasing process.
Amazon Pay Verdict
Amazon Pay is a great option for merchants who need to increase their online sales. Amazon Pay could open up more sales opportunities for merchants who already have traditional merchant accounts. Signing up is free and you don’t need to worry about long-term contracts.
Amazon Payment has a very intuitive interface and many users already have accounts. If you have an Amazon Pay checkout, your clients will feel more secure buying from you. This payment processor can help you to be a more attractive retailer because of the name recognition you gain.
Amazon Pay is not cheap and does not have access to PayPal. However, most merchants can still benefit from this payment method. It’s worth a look.