Dive Brief:
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Beginning July 1 for new retailers and Feb. 1 for current ones, retailers selling through Amazon will face new fees for using the e-retail giant’s payment platforms, including Pay with Amazon, Login and Pay with Amazon, and Checkout by Amazon.
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Retailers now pay 2.9% of each transaction and a refundable $.30 per transaction fee. While the 2.9% fee will remain for domestic transactions, international transactions will incur a 3.9% fee, and the $.30 fee will no longer be refunded.
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The new fees are still comparable to PayPal’s but are higher than Square’s online payment fees.
Dive Insight:
Amazon’s payment services are handy for retailers because customers can pay without entering credit card or other payment information, or their shipping information. These increases could be especially discouraging to international merchants, but overall could open up competition to PayPal and Square.