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Customer Agreement and Policies

Amazon Pay reserve policy

Amazon Pay will withhold a minimum balance in your account to secure payment obligations that may arise after delivery, such as refunds or A-to-z Guarantee claims. We call this minimum balance a reserve.

Why does Amazon Pay need a reserve?

Amazon Pay requires a reserve to manage transactions that are disputed by customers, including claims under the Amazon A-to-z Guarantee (because the A-to-z Guarantee covers qualifying purchases that your buyers made on your site using Amazon Pay). Reviews of A-to-z Guarantee claims, customer complaints, returns, and chargebacks can take 90 days or more. Rather than hold all funds that might be subject to a claim, we ensure a positive and reliable shopping experience for your buyers by reserving only a portion of the funds in your account. We may waive some or all of the reserve requirements for specific merchants that meet internal Amazon Pay criteria.

How will I know when funds will be disbursed to me?

The chart below illustrates the typical flow of transaction funds:

Day

Day 1

Days 2-13

Day 14

Day 15

Day 16

 

Bank release of funds

Action

Your first transaction occurs

You enter the one-time 14 day observation period

Amazon Pay Disbursement

(Captures from Days 1 to 6)

Rolling Amazon Pay 7-Day Disbursement

(Captures from Day 7)

Rolling Amazon Pay 7-Day Disbursement

(Captures from Day 8)

 

Amazon ACH transfer typically takes 3-5 additional business days, depending on the bank

How does Amazon Pay calculate the reserve amount?

Amazon Pay uses a tiered plan to determine what reserve rate we will apply. This allows us to reduce your reserve requirement as you build a positive history as an Amazon Pay merchant. We calculate your reserve requirement daily, based on your tier and your recent transaction volume.

There is a 14-day initial observation period where we will hold all of your transactions in reserve. The observation period begins when your first transaction is successfully processed. Please remember that if a bank account is not associated with your Seller Central account, Amazon Pay will be unable to disburse funds to you.

Reserve Tier I

After the observation period you will be placed in Reserve Tier I. The Reserve Tier I amount is the sum of all of 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. For Reserve Tier I, this typically means we will hold the funds processed for a transaction in reserve for 7 days after the processing date before allowing you to withdraw them. Funds will be automatically disbursed to your bank account, according to the schedule illustrated in the chart above.

Reserve Tier II

After six months of using Amazon Pay, and if you have completed more than 100 orders with us, you may request an upgrade to Reserve Tier II. The Reserve Tier II amount is 3% of your daily processed payments averaged over the past 28 days or the amount of any unresolved transaction disputes (that is, buyer chargebacks and claims that are still in progress), whichever is greater.

If you have been in business and selling actively for more than 6 months and we determine in our sole discretion that your performance is acceptable, we may consider upgrading your account to Reserve Tier II before your six months of history with Amazon Pay has been reached.

If you fall into one of these categories, please see Upgrading to Reserve Tier II for instructions on requesting an upgrade. Amazon Pay will review an account for an upgrade only once every six months.

Reserve Tier II-Plus

If you are Reserve Tier II, you will automatically be placed in Reserve Tier II-Plus if you have maintained an Order Defect Rate (ODR) below 1.0%, averaged over the preceding 60 days. Your Order Defect Rate is determined by the number of A-to-z Guarantee claims, service-related chargebacks, and negative feedback comments as a share of your total Order volume. You can view your ODR information on Seller Central.

For merchants who are in Reserve Tier II Plus, Amazon Pay removes the 3% reserve requirement. If at any time your ODR rises above the 1.0% threshold, you will revert to Reserve Tier II until you meet the criteria for Reserve Tier II-Plus again.

Summary of Tier definitions

 

Reserve amount

Eligibility

Observation period

100% of the payments processed over the past 14 days

You are a new Amazon Pay merchant

Note: If you change your bank account, you will be subject to an observation period, but for only 3 days, and not the full 14 days required for new Amazon Pay merchants.

Tier I

Higher of:

100% of the payments processed over the past 7 days

-or-

The value of all unresolved transaction disputes

You have been an Amazon Pay merchant for more than 14 days

Tier II

Higher of:

3% of your payment processed daily averaged over the past 28 days

-or-

The value of all unresolved transaction disputes

You can request and be considered for an upgrade to Reserve Tier II if:

You have been an Amazon Pay merchant for at least 6 months and have a minimum of 100 completed orders

-or-

You are an established business with acceptable performance which has been actively selling to customers for at least 6 months (not necessarily through Amazon Pay)

Tier II-Plus

The value of unresolved transaction disputes, only

You are in Reserve Tier II and you have maintained an average Order Defect Rate (ODR) of less than 1.0% over the past 60 days

Special notes and exceptions

  • Amazon monitors all merchants for order quality. Notwithstanding your current Reserve Tier status or your Order Defect Rate (ODR), Amazon may review your account, and your reserve requirements may be raised, lowered or removed from time to time.
  • Whenever you change your Bank Account information, we apply a one-time 3-day hold on disbursements starting the day on which the change takes effect.

Upgrading to Reserve Tier II

Amazon Pay uses a tiered plan to determine what reserve rate we will apply. Merchants with a history of active selling can be considered for an upgrade to Reserve Tier II. Your account is eligible for upgrade consideration if:

  • You have been an Amazon Pay merchant for at least 6 months and have a minimum of 100 completed orders,

    -or-

  • You are an established business with acceptable performance that has been actively selling to customers for at least 6 months (not necessarily through Amazon Pay)

If you fall into one of these categories, send an email to amazon-payments-tier-upgrade@amazon.com to request an upgrade to Tier II.

In your email, 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.