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Foreign Policy Analysis
Understanding Amazon Pay’s Reserve Policy

Understanding Amazon Pay’s Reserve Policy

(light music) – [Narrator] In this video,
we’ll help you understand the Reserve Policy for Amazon Pay. This Reserve Policy is different from the Selling on Amazon Policy and it only applies to merchants
who are using Amazon Pay. Amazon Pay requires a reserve
to manage financial liability that’s created from transaction disputes from your customers, such as chargebacks and Amazon Pay A to Z Guarantee claims. By default, all merchants start
off on our Reserve Tier I. Under Reserve Tier I,
100% of the funds received for processed transactions
are held in a reserve for seven days after the
transaction processing date before they are automatically dispersed to your bank account. This means that if you
received a transaction on the first of the month and successfully captured the funds, we disperse the funds to
the bank account on file on the eighth day of the month. Any transactions received
and successfully captured on the second day of the
month will be dispersed to the indicated bank account
on the ninth day of the month. Under Reserve Tier I, we
will also hold funds related to unresolved transaction disputes from chargeback claims and Amazon Pay A to Z Guarantee claims. After a year of using Amazon Pay, and if you have a minimum of
100 completed transactions with us, you are automatically
upgraded to Reserve Tier II. The Reserve Tier II amount is either 3% of your daily processed payments averaged over the past 28 days, or the total amount of any unresolved transaction disputes, whichever is greater. If you’re in Reserve Tier II,
you’re automatically placed in Reserve Tier II-Plus if you have maintained
an Order Defect Rate, also called ODR, below 1% averaged over the previous 60 days. While in Reserve Tier II-Plus, Amazon Pay only holds the amounts of
unresolved transaction disputes. If at any time your ODR
reaches the 1% threshold, you’ll be reverted to Reserve Tier II. You’ll be automatically placed
in Reserve Tier II-Plus again if and when your ODR is below 1% over the previous 60 days. For more information, please
watch our video called, Understanding Your Order Defect Rate. By default, Amazon Pay settles
your account balance daily to generate reports and reconcile
your final account balance for the settlement period. But we’ll only disperse funds to you that are no longer in reserve. For more information,
please see our Amazon Pay Reserve Policy help page. (light music)

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