Amazon takes on Square with 1.75% swipe rate until 2016

Amazon.com is now offering a credit card swipe reader with their new service called Amazon Local Register.  Until 2016, Amazon is offering a promotional fee of just 1.75% per swipe.  This is a full 1% cheaper than Square and .95% cheaper than PayPal Here.  In 2016, the Amazon Local Register rate will increase to 2.5%.

http://localregister.amazon.com/

 
Caution. For those thinking of using this to liquidate gift cards, consider:
1. They will most likely shut down accounts that use the service “not as intended” (this happens frequently with Square, for example).
2. You will receive a 1099-K if you have more than 200 transactions AND $20,000 in gross payments processed through your Amazon Payments account in a calendar year.  You can read their tax information here.

Hat Tip: Josh

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Greg is the owner, founder, and primary author of the Frequent Miler. He earns millions of points and miles each year, mostly without flying, and dedicates this blog to teaching others how to do the same.

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Comments

  1. Does this rule apply for payments thru Google Wallet also? –

    You will receive a 1099-K if you have more than 200 transactions AND $20,000 in gross payments processed through your Amazon Payments account in a calendar year.

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