Amazon is actively upgrading its payment security system to provide sellers with more reliable and convenient financial safeguards. However, under the new regulations, merchants may face delayed or frozen payments if they fail to comply with the updated requirements. Here's what sellers need to understand about Amazon's "Payment Service Provider Program" to ensure uninterrupted cash flow.
Amazon's Payment Service Provider Program: Enhanced Financial Protection
As part of its ongoing commitment to building a secure e-commerce ecosystem, Amazon has introduced the "Payment Service Provider Program." This initiative certifies payment service providers that meet Amazon's stringent standards, ensuring sellers' funds are protected when receiving payments through these authorized channels.
Key Deadline: July 15 Implementation
Effective July 15, 2021, Amazon will cease payments to sellers using service providers not participating in the program. Merchants currently working with uncertified payment processors must take immediate action to either switch to an approved provider or opt for direct bank account deposits to avoid payment disruptions.
Three Compliance Options for Sellers
- No action required: Sellers already using approved payment service providers or direct bank transfers can continue their current arrangements without changes.
- Immediate transition: Merchants using uncertified providers should promptly switch to an approved alternative. Amazon updates its PSP list weekly, requiring regular monitoring.
- Bank account option: Establishing direct bank account deposits remains a compliant alternative unaffected by the new regulations.
Transition Period: May 31 to July 14
Sellers continuing to use non-participating providers during this interim phase will experience extended payment holding periods. Amazon recommends early adoption of compliant payment solutions to prevent unnecessary financial delays.
Support Resources
For payment-related inquiries, sellers should first contact their payment service provider. If issues persist with approved providers during account setup, Amazon's Seller Support team remains available through the platform's help center.
This initiative reflects Amazon's commitment to creating a secure and efficient marketplace for all participants. The enhanced payment security measures aim to foster a more robust e-commerce environment while protecting seller interests.