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Amazon Pay reserve policy

Amazon Pay may require that you maintain a minimum balance in your account to secure the performance of your payment obligations. We call this minimum balance a reserve.

Why does Amazon Pay need a reserve?

For the first six months with new Business and Merchant Accounts, you will be placed in the Tier I Reserve. The Tier I Reserve amount is the sum of all your payments processed over the past 7 days, or the amount of any unresolved transaction disputes (that is, buyer chargebacks and claims that are still in progress), whichever is greater.

After six months of active selling or conducting payments using our services, and if you have completed more than 100 orders with us, you may be upgraded to the Tier II Reserve. The applicable reserve amount for Tier II Reserve merchants is either the merchant's Order Defect Rate multiplied by their trailing 30 days of sales or the total amount of unresolved disputes, whichever is higher.

The Order Defect Rate is defined as the number of orders with a defect divided by the number of orders in the time period under review. This defect rate is represented as a percentage. An order has a defect if we have received negative feedback, an A-to-z Guarantee claim, or a service credit card chargeback on that order. An order can only be "defective" once. Having negative feedback and a claim on the same order will only count as a single defect.

Event Account balance Disburseable balance
  Tier I Tier II
Customer places an order on August 1 £0 £0 £0
You ship the item on August 3 £100 £0 £100

(Assuming no other unresolved disputes)

On August 10 £100 £100

£100 (Assuming no other unresolved disputes)

£100
Claim submitted on August 16 against a previous order for £10 £100 £90

(Assuming unresolved dispute for £10)

£90

(Assuming unresolved dispute for £10)

If your business has been actively selling for more than 6 months (not necessarily with Amazon) and has a good credit history, we may consider upgrading your account to Tier II before your 6 months of history with Amazon Pay has been reached. If you fall in this category, contact us to request an upgrade to Tier II. When you open the contact-us form, enter "Reserve Tier Upgrade Request" into the subject field. In the Comments/Question box, be sure to enter the following information:

  • Your Merchant ID
  • Your Merchant Website URL
  • Your reason for requesting the Tier II Upgrade

We will review an account for an upgrade only once every six months.

Note Changing your bank account information starts an automatic 14-day hold on disbursements.