Amazon's Payment Service Provider Program: What Sellers Need to Know About PSP Requirements
Amazon requires sellers using Payment Service Providers to switch to participating PSPs within 45 days or risk paused disbursements. Covers KYC requirements, switching steps, and ACCS considerations.
Overview
Amazon requires sellers who receive their store sales proceeds through a Payment Service Provider (PSP) to use only PSPs that participate in Amazon's verification program. This initiative is designed to strengthen fraud prevention and protect both customers and sellers from bad actors. Sellers who rely on a non-participating PSP must switch to an approved provider or a direct deposit-taking bank account within a specified timeframe or risk losing the ability to receive disbursements.
Key Points / What Sellers Need to Know
- PSP participation is mandatory — If you receive Amazon store proceeds through a third-party payment company rather than a traditional bank, that provider must be enrolled in Amazon's PSP program.
- 45-day compliance window — After receiving an email notification from Amazon, sellers have 45 days to switch to a participating PSP or provide a qualifying bank account.
- KYC verification is required — Participating PSPs must complete know-your-customer (KYC) checks on sellers before their bank accounts can be used for disbursements.
- Disbursements will be paused for non-compliance — Sellers who fail to act within the deadline will no longer be able to receive payouts through a non-participating PSP.
- ACCS users may also be affected — Sellers using Amazon Currency Converter for Sellers (ACCS) who disburse to a non-participating PSP bank account must also take action.
How the PSP Program Works
Amazon's PSP verification program requires all payment service providers that handle seller disbursements to meet specific risk management and compliance standards. Participating PSPs must implement appropriate controls and work directly with Amazon to reduce the potential for fraud and abuse on the platform. When a seller uses a PSP-managed bank account to receive their Amazon store proceeds, that PSP must be on Amazon's list of currently participating providers. Sellers can check whether their payment provider is enrolled by reviewing the participating PSP list available through Seller Central. If a seller's current PSP is not participating, they should contact the provider to ask about its enrollment plans before the compliance deadline passes.
Analysis & Recommendations
Why This Matters
This policy directly affects how sellers receive their Amazon payouts. Non-compliance within the 45-day window can halt disbursements entirely, disrupting cash flow and day-to-day business operations.
Key Takeaways
- Sellers using non-participating PSPs must switch within 45 days of Amazon's notification or face paused disbursements
- KYC verification by the participating PSP is mandatory and can take time, so sellers should act early
- A three-day security hold applies to all bank account changes in Seller Central
- ACCS users disbursing to non-participating PSP accounts are also affected and must comply
Recommended Actions
- →Check your Deposit Methods page in Seller Central immediately to verify whether your current bank account is managed by a participating PSP
- →If using a non-participating PSP, begin the switch process now by selecting an approved provider and completing their KYC verification
- →Allow extra time for the mandatory three-day security hold when updating bank account information
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