Amazon Payment is currently dead!
Do you know about a web-based payment system called Amazon Payments? Did you know you can send/receive money through Amazon Payments, just like with Payal? So why use Amazon Payments over Paypal? Because you can fund these payments with a credit card with no fees!
But why would Amazon allow this? Because they want to gain market share, and the best way to attract new customers is to waive any credit card fees. The catch? Amazon limits the monthly amount to $1,000 before any fees kick in. But by using Amazon Payments, you can now manufacture spend $12,000 in one year. This is truly an amazing way to meet minimum spend on new credit cards with $0 out of pocket! It’s a fantasy come true for Travel Hackers =)
So let’s get started on the process!
Step 1: Create An Amazon Payments Account
If you already have an Amazon account, then you can just simply login to Amazon Payments with the same login and password. If you don’t have an Amazon account, then you must first create one. In addition, you will need to include an email address to register, so try to avoid using any spam email addresses.
Step 2: Add a Bank Account
- Navigate to the “Your Account” tab, and click on “Edit My Account Settings“.
- Click “Add a bank account” and fill out the routing number and bank account number.
- Next, Amazon Payments will initiate two small deposits into your bank account.
- Finally, Amazon will ask for the deposit amounts to verify ownership of the bank account.
Step 3: Add a Credit Card
- Click “Add, edit, or delete my credit cards” to begin adding a new credit card to your Amazon Payments account.
- To keep organized, I only add one credit card at a time.
Step 4: Send Money
Now the fun begins! What we want to do now is to send money to someone we TRUST. Why? Because this person will be sending the money back to you either by ACH or check. So pick this person wisely (e.g. spouse, parents, relative, or close friend).
- Sign up the trusted person for Amazon Payments.
- Login to your account, and click the “Send Money” tab.
- Type the email address for the trusted person receiving the money.
- Enter the amount ($1,000 limit).
- Make sure “Goods/Services” is selected. Do not select “Cash Advance“!
- Write a small note saying what the payment is for (e.g. rent, food, tickets, etc.).
- Finally, choose the credit card you want to use.
Step 5: Getting Your Money Back
If you made it to this step, then your credit card has been charged, and I sincerely hope you sent the money to someone you trust! Because if you didn’t, it might be very difficult to get your money back!
Now if everything went smoothly, that person should have $1,000 in their Amazon Payments account. Next, have them transfer the $1,000 into their own personal bank account.
Finally, there are two ways to get your money back:
- Have the trusted person write you a check.
- Have the trusted person ACH the funds to your bank.
My Amazon Payment Strategy
Every month I make two Amazon Payment transactions to my brother, FI Fighter. Why two? I just feel more comfortable making two transactions instead of one lump sum of $1,000 every month. Also, I make sure to add a note for each transaction (e.g. one for “rent”, and the second for “groceries”).
Then, at the end of the month, FI Fighter simply transfers the $1,000 from his Amazon Payments account into his personal bank account. And since we use the same bank, he then simply ACH’s to my bank account for free, and I use the funds to payoff my credit card bill. And as a reward for his kindness, I occasionally buy him a cup of tea for helping me amass thousands of miles/points each month! Thanks brother!
Will Amazon start charging credit card fees in the future? Most likely YES! All lucrative deals eventually die. But for now, Amazon is working hard to gain traction in the person to person payment space. And if Amazon can gain market share now, it will pay them back handsomely in the future, especially if the new Amazon phone takes off!
In summary, Amazon Payments is by far the Easiest, Fastest, and Cheapest way to meet minimum spend on those big credit card sign-up bonuses! You can easily manufacture spend $12,000 in the comfort of your home with $0 out of pocket!
So what are you waiting for? Go sign up now, and start reaping the benefits!