Amazon Cuts Fund Withholding Wait Period from 90 to 60 Days
Amazon has cut the fund‑withholding wait from 90 to 60 days, so sellers can request payout 30 days sooner (e.g., a Jan 1 deactivation now allows a request on Mar 2). The Fund Withholding Policy is now in a single Seller Central hub and adds stricter identity verification and third‑party checks.
Overview
Amazon has shortened the waiting period for sellers to retrieve funds that were frozen after an account deactivation. The hold now lifts after 60 days instead of the previous 90‑day window, giving sellers an earlier chance to request disbursement. This change matters because it reduces cash‑flow uncertainty for sellers facing suspensions or closures.
Key Points
- 60‑day release window — Sellers whose accounts are deactivated can begin the payout request process 30 days sooner than before.
- Rewritten policy language — Amazon has clarified the reasons for holding funds and the steps required to unlock them, making the rules easier to understand.
- Single policy hub — The Fund Withholding Policy is now consolidated in one location within Seller Central, simplifying navigation for sellers.
- Explicit third‑party checks — Amazon states it may compare seller‑provided data with external databases and government records during verification.
- Stricter identity verification — Additional documentation and cross‑checking are required before any disbursement is approved.
- Permanent retention criteria — The policy now spells out the circumstances under which Amazon can keep funds indefinitely, such as proven fraud or repeated violations.
How the New 60‑Day Timeline Works
- Deactivation triggers a hold — When Amazon disables an account, it automatically freezes the entire account balance to cover pending refunds, A‑to‑Z claims, FBA removal fees, and any outstanding charges. For example, a seller with $12,000 in sales sees the full amount locked the day the suspension is issued.
- 60‑day countdown begins — The clock starts on the enforcement date. After 60 days, the seller becomes eligible to submit a formal disbursement request. A seller whose account was closed on January 1 can file the request beginning on March 2.
- Submission of verification package — The seller uploads identity documents (government‑issued ID, business registration, tax information) and confirms that all details match Amazon’s records. If a seller previously submitted a passport that expired in June, they must replace it with a current one before filing.
Analysis & Recommendations
Why This Matters
The 30‑day reduction eases cash‑flow pressure for suspended sellers, allowing quicker inventory restocking or debt repayment. Sellers must prepare updated IDs and resolve any pending refunds or fees before the 60‑day deadline to avoid further delays or permanent fund retention.
Key Takeaways
- Hold period reduced from 90 to 60 days, saving sellers 30 days of waiting.
- Eligibility to request payout starts exactly 60 days after account deactivation (e.g., Jan 1 → Mar 2).
- New verification requires current government ID, business registration, and tax info, with Amazon cross‑checking third‑party databases.
- Fund Withholding Policy is now consolidated in one Seller Central hub and outlines permanent retention criteria for fraud.
Recommended Actions
- →Add the deactivation date to your calendar and set a reminder for day 55 to begin gathering documents (e.g., deactivated May 15 → reminder July 9).
- →Upload updated ID, business license, and EIN to Seller Central > Policies > Fund Withholding Policy hub before the 60‑day deadline.
- →In Seller Central > Payments > Transaction View, audit and resolve any open refunds, A‑to‑Z claims, or FBA removal fees before submitting the payou...
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