If you are going to sell products and services online, you need some sort of a payment gateway. Amazon payment gateway allows you to accept and process credit card payments online. This article reviews the history of Amazon as well as Amazon pricing.

 A payment gateway is a software application that helps your Web site communicate with the bank associated with a credit or debit card account. It is the way transactions are made online. However, a traditional payment gateway can get somewhat expense. As a result, many small businesses – and even some large – are turning to alternative payment services that act as payment gateways and can handle transactions online.

Amazon payment gateway

Amazon offers a payment service for sellers and affiliates of Amazon, as well as services for those on other Web sites. For those that sell on Amazon, the payment system is extremely easy to use. It is integrated with your seller account, and it can even work with Amazon fulfillment in the case that you rely on Amazon to ship the items that you sell. The Amazon account can also be used in conjunction with the commissions you might get as part of an affiliate selling Amazon products and services.

For those businesses that are not exactly affiliated with Amazon, but would still like to take advantage of a trusted and inexpensive payment service provider, there are options as well. You can accept payments through the Amazon Pay Now widget or through some other means. This process brings the buyer to the Amazon site, where they can use their Amazon account to pay for purchases at your Web site. For customers, this can bring peace of mind, since many savvy online shoppers do not like to leave personal payment information at multiple sites.

Pricing for the Amazon payment gateway

Pricing for Amazon payment gateway services is relatively reasonable. Indeed, it is faster than most traditional payment gateways. Basically, Amazon has this fee structure for sellers and online businesses that use its services:

• On transactions that are greater than ten dollars, Amazon charges 2.9% + 30 cents.
• For transactions that are less than ten dollars, there is a 5% + 5 cents fee.
• There are volume discounts for different monthly transaction amounts at the $3,000 - $10,000 level, the $10,000 - $100,000 level and the $100,000+ level.

While some of the per-transaction fees are about the same as other payment gateway services, the savings come in with regard to other fees – or the lack of them. Amazon payment services do not require start-up fees or monthly charges. Additionally, you do not have to sign any long-term contracts. There are no charges beyond the per-transaction fee. Most traditional payment gateway services have minimums and monthly charges, as well as other fees.

Is the Amazon payment gateway right for you?

Every business is different, but there are some businesses that would benefit from the Amazon checkout system. Businesses that sell a great deal on Amazon, in addition to selling on their own Web sites would especially benefit. With the integration with Amazon programs, and with the ability to include car up sells and enable 1-Click ordering for the products and services you sell via Amazon, using this payment service can be helpful. Even if you aren't selling on Amazon, or a part of the affiliate program, Amazon offers a way to process online payments without paying a great deal of money in fees and charges. Also, there is the possibility of co-branded pages, which can lend you some credibility, since you will be associated with one of the premier online venders.

However, there are some downsides. Unlike PayPal, which has the option of integrating so that the buyer does not leave you business Web site, Amazon always brings the customer to its own servers. This can reduce your professionalism, and it can confuse some shoppers. Many small businesses find that this does not have an unduly negative effect, however.

Consider the individual needs of you business and what you want to accomplish. It may be that Amazon can provide the payment gateway services that you need. Or, it might be that another service would fit your needs better.

Related Article: What is a Payment Gateway? >>