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What is a Reserve?

Amazon Payments will withhold a minimum balance in your account to secure payment obligations that may arise after delivery, such as refunds or A-to-z Guarantee claims. We call this minimum balance a Reserve.

Why Does Amazon Payments Need a Reserve?

Amazon Payments requires a Reserve to manage transactions that are disputed by customers, including claims under the Amazon A-to-z Guarantee. Customers can buy with confidence using Amazon Payments because the A-to-z Guarantee covers their qualifying purchases. Reviews of A-to-z Guarantee claims, customer complaints, returns, and chargebacks can take 90 days or more. Rather than hold all funds that might be subject to a claim, we ensure a positive and reliable shopping experience by reserving only a portion of the funds in your account.

How Does Amazon Payments Calculate the Reserve Amount?

Amazon uses a tiered plan to determine what reserve rate we will apply. This allows us to reduce your reserve requirement as you build a positive history as an Amazon seller. We calculate your reserve requirement daily, based on your tier and your recent transaction volume.

There is a 14-day initial observation period where we will hold all your transactions in Reserve.

Reserve Tier I

After the observation period you will be placed in Reserve Tier I. The Reserve Tier I amount is the sum of all your payments processed over the past 7 days, or the amount of any unresolved transaction disputes (that is, buyer chargebacks and claims that are still in progress), whichever is greater. For Reserve Tier I, this typically means we will hold the funds processed for a transaction in reserve for 7 days after processing date before allowing you to withdraw them.

Note:

For Checkout by Amazon, we process the payment for your transaction when you confirm shipment of the order to Amazon. We do not process the payment when the order is placed.

For Amazon Payments Advanced, we process the payment when you submit to Amazon a request to capture funds.

Reserve Tier II

After six months of using Amazon Payments, and if you have completed more than 100 orders with us, you may request an upgrade to Reserve Tier II. The Reserve Tier II amount is 3% of your daily processed payments averaged over the past 28 days or the amount of any unresolved transaction disputes (that is, buyer chargebacks and claims that are still in progress), whichever is greater.

If you have been in business and selling actively for more than 6 months and we determine in our sole discretion that your performance is acceptable, we may consider upgrading your account to Reserve Tier II before your 6 months of history with Amazon Payments has been reached.

If you fall into one of these categories, please see Upgrade to Reserve Tier II to request an upgrade. Amazon Payments will review an account for an upgrade only once every six months.

Reserve Tier II-Plus

If you are Reserve Tier II, you will automatically be placed in Reserve Tier II-Plus if you have maintained an Order Defect Rate (ODR) below 1.0%, averaged over the preceding 60 days. Your Order Defect Rate is determined by the number of A-to-z Guarantee claims, service-related chargebacks, and negative feedback comments as a share of your total Order volume. Once you become an Amazon Payments seller, you will be able to view your ODR using our online tools at Seller Central.

Amazon Payments will remove the 3% reserve requirement for Reserve Tier II-Plus. If your ODR rises above the 1.0% threshold at any time, you will revert to Reserve Tier II until you meet the criteria for Reserve Tier II-Plus again.

Summary


Reserve Amount Eligibility
Observation Period 100% of the payments processed over the past 14 days You are a new Amazon Payments sellers

-or-

Whenever you change your bank account
Tier I Higher of:

100% of the payments processed over the past 7 days

-or-

The value of all unresolved transaction disputes
You have been an Amazon Payments seller for more than 14 days
Tier II Higher of:

3% of your payment processed daily averaged over the past 28 days

-or-

The value of all unresolved transaction disputes
You can request and be considered for an upgrade to Reserve Tier II if:

You have 6 months of use of Amazon Payments and a minimum of 100 completed orders

-or-

You are an established business with acceptable performance which has been actively selling to customers for at least 6 months (not necessarily with Amazon)
Tier II-Plus The value of unresolved transaction disputes, only You are in Reserve Tier II and you have maintained an average Order Defect Rate (ODR) of less than 1.0% over the past 60 days

Special Notes and Exceptions

  • Amazon monitors all sellers for order quality. Notwithstanding your current Reserve Tier status or your Order Defect Rate (ODR), Amazon may review your account and your reserve requirements may be raised, lowered or removed from time to time
  • Whenever you change your Bank Account information, we apply a one-time 14-day hold on disbursements starting the day the change takes effect

Upgrade to Reserve Tier II

Amazon uses a tiered plan to determine what reserve rate we will apply. Sellers with a history of active selling can be considered for an upgrade to Reserve Tier II. Your account is eligible for upgrade consideration if:

  • You have 6 months of use of Amazon Payments and a minimum of 100 orders,
  • -or-

  • You are an established business with acceptable performance that has been actively selling to customers for at least 6 months (not necessarily with Amazon)

If you fall into one of these categories, please use this contact information below to request an upgrade to Tier II:

In your email, be sure to enter the following information:

  • Your Merchant ID
  • Your Merchant Website URL
  • Your reason for requesting the Tier II Upgrade

We will review an account for an upgrade only once every six months.