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Amazon Payments Removing Free $1,000 Monthly Transfers

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We recently wrote about Amazon Payments and the Ability to Send and Receive Money with a credit card. Currently with Amazon Payments, users can send and receive up to $1,000 each calendar month using a credit card without being charged any fees, creating the opportunity to earn credit card points for expenses that might otherwise be paid in cash or by check, like a house cleaner, piano lessons, loans between friends, etc. Money received can then be withdrawn to a linked bank account (again with no fees), meaning it doesn’t cost either party anything.

Amazon Payments can help you make credit card payments to individuals.
You’ll no longer be able to send money to other people through Amazon Payments.

Well, I just received the following email from Amazon which states that this option will be ending on October 13, 2014.

Additionally, we have updated the terms and conditions of our User Agreement (https://payments.amazon.com/help/Personal-Accounts/User-Agreement-Policies/User-Agreement) that apply to your use of the products and services provided by Amazon Payments.  Our updated User Agreement revises certain terms (including, among other things, the elimination of person-to-person payments).  Our new User Agreement will become effective on October 13, 2014, which is more than 30 days from when we first posted our updated User Agreement.  By continuing to use our services after October 13, 2014, you are agreeing to be bound by the terms and conditions of our new User Agreement.” 

I’m disappointed that this feature is being taken away, since it allowed me to put an extra $12,000 per year on my credit cards for things that I paid for anyway, making it much easier to meet minimum spend requirements for new cards. However there are still other ways to use credit cards for expenses that you might typically pay with a check or cash. For suggestions, check out Flyertalk’s forum devoted to the subject.

How will this latest change to Amazon Payments affect your spending habits?

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