Service, reviews and fraud prevention
Whereas regular Amazon users find it impossible to contact Amazon for help, sellers have 24/7 access to customer support via email, phone and live chat. An extensive online support section also provides clear answers to most questions asked by merchants.
However, we’ve seen complaints from users about how Amazon handles what the company perceives as fraudulent account activities. If Amazon detects a potentially fraudulent transaction, the payment may be withheld for 90 days or longer, with little or no help to resolve it from Amazon’s end.
Some merchants have had their accounts frozen unexpectedly with no clear reason given as to why. This is usually due to selling a prohibited product or service such as adult entertainment, financial services, weapons, alcohol and membership clubs, but some have claimed that Amazon’s algorithm for detecting this was off the mark.
Such security measures are not unusual for an online payment service such as Amazon Pay that – PayPal has tons of complaints about similar issues. That’s because Amazon Pay transacts in e-money, an online currency equivalent to regular money, through its own merchant account shared across users. You do not get your own traditional merchant account like, say, Worldpay provides.
This means there are different security measures in place that are less predictable, with stricter account limitations dependent on the nature of your business. In fact, Amazon Pay states in its user agreement: “E-money does not qualify as a deposit so you are not protected by any deposit guarantee schemes” – so you need to make peace with that before signing up.