One of the easiest ways to generate credit card spend over the years has been using Amazon Payments. Amazon Payments let you send someone else $1,000 per month funded using a credit card. So while you’d pay a fee to use Paypal or another money sending service, the first $1,000 per month was free with Amazon Payments.
Why? Because they were trying to steal market share from Paypal and weren’t a big player in the market before. They figured it was a nice incentive for people to try Amazon Payments over Paypal, and I’m sure it generated a decent volume of transactions. Of course they weren’t exactly profitable, since it was the same people sending $1,000 payments funded by credit cards month after month. 😉
Today Amazon Payments sent out an email with the subject line “Amazon Payments: Annual Notice.” That seemed innocuous enough, as companies are constantly updating their policies and sending out notices.
But Gary points out one major thing they’ve buried in this announcement (bolding mine):
Additionally, we have updated the terms and conditions of our User Agreement (https://payments.amazon.com/
help/Personal-Accounts/User- Agreement-Policies/User- Agreement) that apply to your use of the products and services provided by Amazon Payments. Our updated User Agreement revises certain terms (including, among other things, the elimination of person-to-person payments). Our new User Agreement will become effective on October 13, 2014, which is more than 30 days from when we first posted our updated User Agreement. By continuing to use our services after October 13, 2014, you are agreeing to be bound by the terms and conditions of our new User Agreement.
So it looks like the ability to “generate” $1,000 in credit card spend with Amazon Payments will be going away as of October 13, 2014.
That means you still have the rest of this month to make one transaction, and then the first couple of weeks of next month to make another transaction.
Frankly I’m surprised it lasted this long…
Will you be earning 12,000 fewer points per year as a result of this change? 😉