How To Send Money Through Amazon:

Jeff Bezos, the founder and CEO of the world’s largest online retail company, Amazon, pulled out another treat from his billionaire’s magic hat. Amazon Payments is the company’s entry into the online payment platform business.

To get more consumers to try the service, Amazon recently announced that it would give away smartphones uploaded with Amazon Payments so people can see how convenient and easy it is to use the platform for sending and receiving money.

Of course, it’s not Amazon if you can’t make purchases with it! You can use Amazon Payments to buy products from the retail giant’s website. But there’s more to Amazon Payments than just a platform for sending and receiving money or for making payments. You can use your credit card via Amazon Payments and earn rewards in the process!

Not many people know this! In fact, even people who have used Amazon Payments are clueless about how you can use the platform to pick up rewards points for your credit card.

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We are here to tell you how! Before anything else, let’s have a refresher course on how Amazon Payments works. Along the way, we will answer the most Frequently Asked Questions (FAQs) on Bezos’ newest baby.

Amazon Payments – What it Is And Why It Is Better Than PayPal

Chances are you already know what PayPal is. You may even have hands-on experience in using the popular online payment platform to purchase an item off the Internet or to pay for a service.

With PayPal, you can make a payment or send and receive money through 3 ways: credit card, debit card, or your bank account. When you open a PayPal account, you will be asked to put in your bank account number and/or a credit/debit card number as part of your payment details.

Every time you use PayPal’s services, you will be charged a fee of 3% that is based on the cost of the transaction. Amazon has seen PayPal rake in the big bucks throughout the last few years and has decided to do customers one better with Amazon Payments.

During its fledgling phase, customers could use their credit cards to send and receive a maximum of $1,000 every month free of interest charges. This arrangement encouraged customers to use Amazon Payments to pay for products and services that they otherwise would have paid for with cash or a check.

paypal app on cell phone

Likewise, you could withdraw money that was sent to your linked bank account without being charged interest fees. Imagine receiving $1,000 per month in your credit bard! You could have $12,000 in your credit card at the end of one year. This makes it easier for you to purchase products and services that you normally purchase within 365 days.

With this arrangement, you won’t have any problems meeting the minimum payment required by credit cards.

How To Use Amazon Payments

Do you have an account at If not, you have to open one in order to use the Amazon Payments platform. For those with an account at, log in and go to Follow the instructions carefully. Amazon will ask you if your email address is correct. From there, you will have to link your bank account to the service.

Paying To & From Bank Account

Linking your bank account will require you to go through a simple process. First, you‘ll have to present login information or acknowledge your ownership of the bank account. Then, you will be asked to receive 2 sets of small deposits. If you have received the deposits, confirm it with Amazon Payments. If you want, you can add a few more credit cards to your account to facilitate other transfers.

Transfering To Another Amazon Account

If you wish to send money to another Amazon Payments user, provide his/her email address. You will see the name of the recipient on the screen. Take the time to verify the information. You want to make sure the right person receives your money! Amazon will then ask you the purpose of payment. Do not choose “Cash Advance”. Instead, choose “Goods/Services”.

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What would happen if you chose “Cash Advance”? Your credit card issuer may charge you a fee for making a cash advance! It may sound like the process takes forever, but it doesn’t. You will be done 2 minutes tops. It’s easy to facilitate transactions. If you deposit money in your Amazon Payments account, you can withdraw it from your linked bank account in about 5 to 7 days.

Frequently Asked Questions (FAQs) On Amazon Payments

Below are some typical questions people ask when trying to transfer money via Amazon payments:

Can I send more than $1,000?

Yes, but you will be charged a fee by Amazon Payments. Only amounts of $1,000 or lower are free or interest charges.

Should I give a description of the item I am buying?

Not necessarily. If you choose to do so, go right ahead. It may make you feel confident that the purchase will be accurate.

Why is Amazon absorbing the cost of the merchant’s fees?

Amazon isn’t the world’s biggest online retailer if it didn’t do its homework. The company’s think-tank may have calculated the cost of the merchant’s fees inconsequential when weighed against the total volume of purchases. Sort of like the free drink whenever you order a value meal at your favorite fast-food restaurant.

Is it possible to game Amazon’s system?

No. Amazon keeps a close eye on the platform’s activities. Do it and you’ll risk your account being closed down.

I’m not a US citizen. Can I still use Amazon Payments?

Yes as long as you have a US Social Security Number.

Will my credit card company charge me a fee for a Cash Advance transaction?

Yes. This is why we earlier advised you to choose “Goods/Services” instead of “Cash Advance”.

Can earn reward points on my credit card for using Amazon Payments to purchase items not exceeding $1,000?

If you have some money left-over, use it cash out your gift cards. If you bought your gift card from an establishment that gives bonuses, you can get more reward points or extra mileage for your purchase.