Amazon Local Register: 1.75% Credit Card Processing

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Update: You can now get this for free with code: 6E94X85QY3
Plus you’ll get your first $10 in credit card processing for free! DEAD!

HT: the great, via DDF
Originally posted on 08/13:

Amazon Local Register

Amazon is going to compete with Square and Paypal Here with their new Secure Card Reader that works iPhones, Samsung Galaxy phones, iPads, and Fire tablets.

The reader costs $10 and comes with $10 in free processing.
There are no monthly fees, chargeback fees, refund fee, foreign card fees, or contracts.

Signup by 10/31/14 and swiped card processing is just 1.75% until 01/01/16. Afterward it goes up to 2.5%.
Keyed-in cards are 2.75%.

If you already have a consumer Amazon Payments account then you’ll want to enroll with a new Amazon account.

But say you want to buy some gift cards to swipe on your register:
-A $200 Visa gift card at Staples costs $206.95 in-store or online.
-If you buy it on a Visa business card you get 1% cash back, dropping the cost of the card down to $204.88.
-If you swipe $200 on your register you’ll be charged $3.50 in fees, leaving you with $196.50.
-The total out of pocket fees are thus $3.50 (Amazon processing fee)+$4.88 (Gift card purchase fee)=$8.38.
-On a card like Ink Plus that earns 5 points per dollar at an office supply store you’ll have earned 1,035 miles for the purchase.
-Your cost per mile is about 0.8 cents each.
That’s like paying $36 for a short-haul flight with BA Avios, $456 for a Singapore suite, $480 to fly round-trip to Israel, $200 to fly round-trip to Hawaii, $120 per night at the Grand Hyatt Baha Mar Bahamas, or $200 per night for the normally $1,500 per night Park Hyatt Maldives.

HT: ShlockDoc, via DDF

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91 Comments On "Amazon Local Register: 1.75% Credit Card Processing"

All opinions expressed below are user generated and the opinions aren’t provided, reviewed or endorsed by any advertiser or DansDeals.


Can I use visa gift cards for the 1.75?


Why make a new account?


@dave: sure.


Why not go for the spread? I mean if you had a “friend” or anyone whose Barclay credit card had a billing address different from yours, how can amazon tell?

its too tempting

User Name

I wouldn’t recommend this at all – look at the experiences people have had with similar services:

1099s = tax headaches
Accounts closed fo suspicious activity with no warning and funds held for 3-6 months.

Steer well clear.


Keep in mind that manual entered cards are still 2.75% so u NEED the reader!!


what is the 2.2% profit on the barclay arrival card


Love how you let everyone in on awesome shtick while seeming like your saying not to do it!



Does anyone make a reader that can work via computer instead of smartphone?


anyone know what the limit is to not get a 1099 filed? or how to keep this on the d/l and under the radar


not sure what the issue every1 is discussing regarding getting 1099’ed on this $$ .. if u can show that its not income (because $$ went from one pocket to the other ) you dont pay tax


What happens if I keep the same account?


How do you sign up for a bit acct?


why do we need a new amazon account if i already have amazon payments?


throw an affiliate link in there. not to mention the amex 2% true cash back card, rather then a 2% only good for travel.


When I tried signing up it prompted me to make a new account.

Oh goodness, an affiliate link, that’s just terrible.

1. The Barclay card has a $440 signup bonus vs. none.
2. It’s more than 2% as you get 10% back each time you redeem. Last time I checked 2.22% is more than 2%.
3. You don’t need to actually travel to redeem for travel. Cashing out the points at 2.22% isn’t rocket science.
4. Yes it has an annual fee after 1 year. But they constantly waive it when you ask them to do so,


@yitz:show to who? Once you get a 1099 , a copy goes to the IRS. My credit card processor issues a 1099 no matter the size or amount of transactions per year.


To the IRS of course when you prepare your return.
Not a big deal.


@Dan: Most returns are now electronic. You want to write a letter to the IRS saying the income stated on a 1099 (paid to you by credit card) is not really income? Sorry, that does not sound like a good idea to me. I would classify that as audit bait. The 0.5% spread is 50 bucks for $10,000 in swipes. Sounds like a lot of work for a very low return with a high risk.
Now on the other hand, this may be a good deal for someone who accepts credit cards because the 1.75% flat fee is a good rate. However, if someone questions a charge(chargeback), do you want to speak to someone who answers their phone in under a minute or deal with someone at Amazon.Just my two zuzims.


1099-K is only for 200 transactions+$20,000 of volume…



$20K? Peanuts.


Hey Dan I really want to get good credit cards for points and benefits but the problem is I’ve only been 18 for 4 months so i’ve only had my own credit for 3.5 months (Walmart, Target, Wells fargo & discover it student csrds). Every time I apply to amex, chase, and barclays I’m denied and every time I call recon they say they need to see more credit history. Do you know any way around this, like something I can tell them to convince them otherwise, or is the only option to just wait several months?


@Dan. Some credit card processors(including mine) does it no matter what the volume or dollar amount. What happens if they combine this with a Amazon Payment account? After all, the both have the same social security number tied to it.


Read it again, $20K+200 transactions.
That’s both, not either or.

Just use your current cards wisely and wait a few more months.

Amazon only reports for $20K+200 transactions on Amazon, period.
Or have a relative add you onto one of their older cards.



20K AND 200 transactions is peanuts 😛


will there be a hard pull on your credit? bofa payanywhere did when i signed up, and amazon is aksing for my full social


@Dan:from the IRS websiteThe 1099-K is an IRS information return for reporting certain payment transactions to improve voluntary tax compliance. You should get a 1099-K by the end of January 2014 if, in 2013 you received payments from:
•payment card transactions (e.g., debit or credit cards)

•in settlement of third party payment networks (i.e., online sellers) above the minimum reporting thresholds
-gross payments that exceed $20,000, AND
-more than 200 such transactions.
The way it was explained to me, I got a 1099K because of bullet point one. You are referring to bullet point two.


I think it may all come to down how is swipe going to show up on someone’s credit card statement. Is it a payment to Amazon or to a person. If it is to Amazon then you are right. If it to the “merchant” than I think I am right.


Also from the IRS:Is there a de minimis exception for Forms 1099-K by third party settlement organizations?

There is a “de minimis” exception from reporting for a third party settlement organization with respect to third party network transactions. If payments to a participating payee exceed $20,000 and exceed 200 transactions within the calendar year they must file for that participating payee.

Does the de minimis exception described above apply to payment card transactions?

No. The “de minimis” exception does not apply to payment card transactions settled by merchant acquiring entities.


Can i use this for my private use or does this have do be used for amazon transactions


Bigger transactions and that’s what spouses are for…

I don’t think Amazon does a hard pull, but I’m not positive.

That’s not how Amazon works,

Private use is the intention.


So why the need for a amazon account


All my transactions would be in $500 increments…


I didn’t see any response to EL regarding a credit card reader that would work with a computer (if there is any)

too good to be true

If you were to take a chance on it and test it, you will most probably want to make substantial $ on it…which would probably open a huge can of worms with the IRS. Not something you want to do with those irrational bastards. But if you do go through with it
A- check off “OBAMA-Lover” somewhere on your 1099 (so you will be exempt from any sort of audit) lol
B- open up “yoyleys office supplies” store and get 5 points for every dollar via Chase Business
let us know what happens whomever tests it


@AJK: Any reason to it?


What’s the sign-up process like?


Be aware, Go-payment by Intuit, will take a TIN, even on a Sole, (if you have one), Amazon as per IRS, (that’s what they told over the phone), would only take your social


Can you order more then one card swiper and get the $10 credit?


I only got a soft on Experian from Amazon Payments. (Live in NY)


$504.95 vgc from drugstores. Would cost 8.75 to liquidate. 25.25 cash back with old abc minus 4.95 minus 8.75 = 11.55 per card. 199 cards per processor per calendar…


Why is this better than just loading your gift cards onto your bluebird or serve card and paying your bills with that money? That way you don’t have to pay the 1.75% fee altogether.


It’s not better. It’s easier.
No need to to go to WalMart.


They charge 1.75% flat fee? Isn’t the charge usually higher for amex as opposed to visa/mc? Is it the same 1.75% with this


Everything is 1.75 with this.


Does anyone know how the transactions appear on the credit card statement, Amazon Payments? or The individual business name etc.?


why i wasn’t able to sign up? I tried with my amazon log in and password.
We’re sorry.

At this time, you are not eligible for an Amazon Local Register account. For further information about Amazon Local Register account requirements, visit Help & Support.

Michael H.

My account was shut down after less than 10 payments. Probably a waste of time.

sam gucci

hi, the reporting threshold is forsure $20,000 transactions and 200 transactions? both requirements?


Probably both AP and the business name.

Call and ask?

@Michael H.:
Did you charge your own credit card or a card with your billing address?

More data would be appreciated.

@sam gucci:

sam gucci

so if only one requirement is met it won’t be reported?


@sam gucci:
That’s what yes means.


and the reason for the enticing second part of the twitter title? “Amazon Local Register: 1.75% Credit Card Processing.
Or Fly In A Suite Or Fly Round-Trip To Israel For Under $500..”

sam gucci

thank you!


Did you read the whole post before commenting?

@sam gucci:
Not a problem.


@Dan: Always, but apparently my skimming was not good enough this time. Leave it to you and your creative juxtapositioning!! LOL


I don’t know. We will find out by Feb 2015.I know you point to the 200 transaction,$20000 part but this comes up in the application.

With Amazon Local Register, you earn income through credit card transactions processed by Amazon Payments. Amazon Payments is required by law to report all income to the IRS using form 1099K. A copy of this form will be delivered to the mailing address you provide at the end of the year. If you have questions about this information, please consult your tax advisor


Amazon Payments has never sent a 1099 unless you exceeded both $20K and 200 transactions.


The fact of the matter is regardless of Amazon’s reporting conventions every indivdual taxpayer must declare all income – from whatever source derived. I found a penny today. Made a note of it on my income log.

Heads up

My square account was closed down when I swiped too many gift cards. Amazon does know if you’re using a gift card, and may do the same. Just excersise prudence.



Can you please direct me to the subscribe & Save Directions for Amazon that you posted a while ago?

Thank You


@Heads up: Can you give us the specific heads up…how many was too many and in what time period?


There is a program to install on your computer, that will make it run any app designed for android. But since its very a have program, it will slow down your computer dramatically. So you should install it only on a secondary computer that you don’t use.


that com program is called bluestacks but its a littl buggy/glitchy

Simon Azar

Which kind of business should I choose?
Is it matter?

Simon Azar

I mean when I sign up to Amazon which kind of business should I choose. Is it matter? When I tried with PayPal they denied me with real estate.


I don’t see how u calculate cost of TLV RT at 480
is it 60k avios?


any thoughts on how to get a free Prime account? or something else that will give free shipping?

Irwin Stein

It’s amazing how stupid people are
And how suckers jump into the dumb sewage being offered here.
Illegal gaming the system and downright wrong. People sell their souls (and their spouses!) for a few bucks. Shame


hey @dan why are they putting up this promotion. isnt amazon payment kindof ending??


Hi. Can anybody answer. Thanks.
I have a real business doing between 15-20k a month, I pay more than 2.75 actual percentage. On the contrat I got 2.20 but there is always different charges which most poeple don’t even understand on their statements. My actual cost abt 3.25 percent. Will amazon payments be of any help for me, also how long does it take for clearing, my current processor is giving me next day funding.
Anyone with real business experience?



I set up an account for a real business. It’s been a little bit of a pain setup wise. Most of my transactions are manual charges which have resulted in 2.75% exactly being deducted from my transactions. The first few charges were not payable for 2 weeks, but the last couple have been payable immediately. Today I received this to my email:

In order to fully evaluate your proposed use of Amazon Local Register, please provide us with the following information:

1.Detailed description of how you intend to use Amazon Local Register

2. Location and the products/services that are sold by your business

Failure to provide this information may lead to restrictions on your Amazon Local Register account or, in some cases, the inability to use Amazon Local Register at all.

I have only done legitimate charges with the exception of a $10 test charge, so I’m not sure why I would have been targeted unless everyone is receiving these.


Question if anyone knows can you set up 3 people with this amazon card reader and the Barclays arrival Mastercard and swipe to each other a lot of money say 10,000 each transaction and do 190 transactions throughout the year? The gain will be around 9000 please reply if anyone knows. Thanks!




I already purchased the card reader a few weeks ago, will they give me a price adjustment?


I paid the $10 a week ago, if I call Amazon will they refund it?


Can the code be used for anything else?

Sam Gucci

How do I make sure I get the $10 in processing credit? Is it per swiping unit or account?


Why can’t you register your business as an office supply store etc. and swipe straight from ink card instead of purchasing gift cards from staples?


Can I use this to swipe my amex cards for small business saturday ?



Thats called money laundering. Good luck in prison


DEAD it says the code us expired


The promotional code you entered has expired.


Thanks! Had just been about to buy it – already had it in my cart!


@Nate: @eddie: Read the post.


@Anonymous: Not sure how the post answers the question. The post says not to swipe a card that has the same name as the account. I’m just suggesting registering your amazon acct as office supply and swiping ink (not in same name) to get five points per dollar. Perhaps you have a friend that you can swap with. This way no hassle and save in gift card fees.


Hi Dan. I was wondering….. If I do buy the gift cards and swipe it with my registry…. Aren’t I sending more money earned to the IRS which in turn can raise my taxes? §just starting a business so I’m curious… TIA


technically you have an expense to offset it. I personally wouldnt do it bc its a nightmare come tax time.

paul davidson

Good point. Just in case anyone needs to fill out a tax forms, I found a blank forms in this site PDFfiller. This site also has some tutorials on how to fill it out and a tons of fillable tax forms that you might find useful. Here is a link to the blank IRS form 1099-K that I was able to fill out


Don’t Get Involved with Amazon Local Register. I signed up with them when they first released Local Register. I purchased 3 card readers because we have 3 people that I wanted to be able to take credit cards. The enrollment was a hassle but eventually I worked through it. We were operating for about 2 months and everything was going fine until I get an email that my account has bee suspended because they need:

– A copy of your valid passport or green card government issued identification.

I don’t know about you but this insulted me because I an in my 70s and served our country. I have never in my life time been asked for a “GREEN CARD”. I have been fighting with them for 3 months now and I have now decided it’s not worth it.

I’m going with another service. My advice is to not get involved with Amazon Local Register.


For your information:
I used my Amazon local register only for visa gift cards (approx. 5k within 2 months) and I was just shut down, and they don’t let me back no matter what.. Be Aware!!!