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Amazon Raises Fees on Amazon Payments

Amazon is raising certain fees for its Pay with Amazon, Login and Pay with Amazon and Checkout by Amazon (CBA) payment processing solutions that online retailers use on their own websites. The changes fall into three main buckets, and merchants are well advised to pay attention – especially to the new fee for disputed chargebacks.

Fees for all Amazon Payment transactions are currently 2.9% plus 30 cents per transaction. The three types of fee changes going into effect are as follows:

  • The 30-cent authorization fee on each transaction will no longer be refundable;
  • There will now be a “Disputed Chargeback fee” of $20;
  • Cross-border fees will rise to from 2.9% to 3.9%; (The 2.9% processing fee plus 30-cent authorization fee for domestic transactions is not changing).

Checkout by Amazon is a complete checkout and payment solution for online retailers. As Amazon explains, “You can offer it as a checkout or payment option on your retail website to enable millions of Amazon customers to use information stored in their Amazon.com accounts to buy on your site.” The advantage to merchants is that customers use their shipping addresses and payment methods already stored in their Amazon.com accounts to check out on the merchant’s website.

Amazon notified merchants about the fee change this week, explaining that it reflects the higher processing cost of certain transaction types.

On a FAQs section, Amazon explained the new transactions and fees will be displayed in the current settlement report under the “TransactionType” field.

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“Each new transaction will have their own description. For example, disputed chargeback fees will display “Dispute” as the transaction type, uncaptured authorizations will display “Authorization” as the transaction type, and cross-border processing fees will be included in the “Capture” transaction type.”

The changes take effect on July 1, 2015, but current merchants (those who are registered prior to July 1st) will see the fee changes take effect next year – on February 1, 2016.

See more information on the Amazon website.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.