Buy Points for 1.75 cents with Amazon Local Register

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With Amazon Payments no longer being an option to meet minimum spend requirements, I’ve had a few readers ask me about Amazon Local Register. This is similar to Amazon Payments, but it is paying person-to-business and not person-to-person.

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This product is similar to Square Cash where you can receive payment from someone with a simple credit card swipe on your mobile phone or tablet.

Now, some are wondering if paying person-to-business will work via Amazon Local Register. This is a new-ish product similar to Square Cash. While you absolutely can use a credit card to swipe, it will cost you 1.75% (assuming you sign up by October 31, and that % will last through the end of 2015). While this is cheaper than Square Cash, 1.75% can still add up. Let’s say you swipe through $1,000 for the month, it will cost you $17.50. If you are trying to meet a $1,000 minimum spend requirement, it could be worth it, but “buying” points at 1.75 cents per point can be costly. Of course if you have a specific redemption in mind and the math works out then go for it. Or using a credit card that earns you a fixed 2 cents per point automatically puts you ahead.

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One major thing to keep in mind though is getting taxed on the “income” you bring in from credit card transactions. When you register for this payment option it does ask for your social security number.  The terms state, however, if you are a merchant you will only receive a 1099-K if you have both 200 transactions and $20,000 in gross payments processed through your Amazon Payments account in a calendar year. I was actually hesitant to even write this post due to the potential tax implications. So while they say you will not have to pay taxes for a minimal amount processed throughout the calendar year, I am still hesitant. So this is a warning that I am not guaranteeing you that you will not pay taxes.

I have heard of people’s accounts getting canceled due to “unethical” activity, so I suggest treading with caution if you decide to manufacture spend with this method. I would NOT swipe your own credit card as that will raise a red flag and chances are your account will most definitely get shut down.

The secure card reader costs $10, but you’ll get a credit for your first $10 in processing fees. This essentially means you are getting the reader for free.

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Overall, I suggest treading with caution. Feel free to share your experience with this card reader in the comments section below.

The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.


  1. This is strictly for business only. It’s in the terms. No personal transactions allowed, whether your own card, a gift card, etc. This is different than other options out there which allow for personal use. Before they shut you down, they ask for you to prove your business expense, your type of business, etc. You can get away with it for a few transactions but they know if it’s a personal card, even a gift card (the first 6 digits give it away).

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