What You Need to Know About Amazon BNPL

Amazon has become synonymous with online shopping, and as it’s grown, the company has expanded its offerings into financial products that help you pay for what you buy on the platform. Over the years, it’s offered promotional financing through its credit cards, but now eligible Amazon shoppers can make five monthly payments over four months on eligible products.

This buy-now-pay-later (BNPL) service works similarly to the payment plans offered by Affirm and PayPal Pay in 4, in that you break up a purchase into separate payments. The service charges no interest, though you may be charged interest on the credit card you link to the service if you don’t pay off your balance every month. Learn how Amazon’s BNPL program works, and what fees and restrictions you can expect.

How Does Amazon BNPL Work?

The Amazon BNPL program allows shoppers to split a purchase into five payments. You'll make the first payment when the item ships, then four additional payments over the next four months using a credit card linked to your Amazon account.

This is a departure from many popular BNPL services, which require four payments over a six-week period. Amazon BNPL payments are typically equal, but the final payment may be smaller if the purchase amount isn't equally divisible by five.

The program is different from the promotional financing options you can get through one of the Amazon store cards or co-branded Visa cards through Chase. Those options include repayment plans that range from six to 24 months, depending on the card. They also differ from the BNPL service in that they have purchase minimums and may charge interest, depending on the finance plan.

Is There a Minimum Purchase Size When Using Amazon BNPL? 

There's no minimum purchase amount to take advantage of Amazon's BNPL service. 

However, the service is limited to qualifying new products sold and shipped by Amazon, as well as qualifying or new certified refurbished Amazon devices sold and shipped by the retailer's digital services arm.  

Is There a Maximum Purchase Size When Using Amazon BNPL?

Amazon also doesn't list a maximum purchase amount, instead focusing on offering BNPL for certain items. 

Do Products Bought with Amazon BNPL Ship After First Payment?

Yes. You'll make your first payment on the date the product ships. This sets Amazon’s BNPL and other BNPL services apart from layaway programs that give you the product only after you’ve paid it off through a series of payments over time.

Can I Use Amazon BNPL To Pay Bills?

No, Amazon's BNPL service is only available on qualifying Amazon purchases. You can't use the feature with other retailers or to pay your monthly bills like rent, utilities, and wireless phone service.

Is There a Credit Limit?

Unlike other BNPL services, Amazon doesn't provide a credit limit because it doesn’t offer a credit line. It's simply another payment method the retailer offers to make paying off certain items more manageable.

Does Amazon BNPL Affect Your Credit Score?

No, the service doesn't impact your credit score in any way, which can happen with other BNPL apps. However, your payment activity on the credit card linked to the service can affect your credit score. 

Does Amazon BNPL Check Credit?

While other BNPL services require a soft or hard credit check when you apply, Amazon doesn't use your credit report to determine your eligibility. As such, applying for BNPL won't hurt your credit score.

Does Amazon BNPL Report Your Activity to Credit Bureaus?

Amazon doesn't report your BNPL payments to the credit bureaus. But the credit card you have connected to the service almost certainly does. So, while using the Amazon service itself won’t necessarily build or hurt your credit, you can still help your credit by paying your linked credit card on time, or hurt your credit by not paying it on time. While this means you can't use the program to build your credit history, it also means late payments won't damage your credit score.

What Credit Score Do You Need To Use Amazon BNPL?

There's no minimum credit score requirement because Amazon doesn't run a credit check when you choose monthly payments as your payment method.

Instead, the retailer uses four main eligibility criteria:

• You must reside in the U.S.
• Your Amazon account was active in the past year.
• You need a valid credit card linked to your Amazon account—debit cards are not accepted for this program.
• You need to have a good payment history with the retailer.

Amazon may also consider other factors, such as your transaction history and the nature and price of the qualifying item.

Does Amazon BNPL Charge Interest?

Amazon doesn't charge interest when you use its BNPL service. Of course, you can prepay your next installment or pay off the entire balance before it's due. 

Because there's no interest involved, the only benefit of paying off your balance early is to not have to keep track of upcoming payments, especially if you're using the program for multiple purchases at a time.

Does Amazon BNPL Charge Fees?

No, Amazon doesn't charge fees to use its BNPL program. 

Is Amazon BNPL Safe?

Another way Amazon’s BNPL program differs from other BNPL services is that you're not involving a retailer and a lender—you go directly through Amazon. When you set up monthly installments, the process is just as safe as making regular payments through your Amazon account.

But while payment security is strong, using BNPLmultiple times could make it difficult to keep up with all of your payments. Also, because you don't have to pay in-full upfront, it could encourage overspending, which can hurt your financial well-being. 

Finally, because Amazon only allows you to use the program with a credit card, you'll also have to make sure you pay your credit card bill to avoid interest charges and late fees. If you miss a payment or rack up a high balance on your card, it could hurt your credit.

Amazon BNPL Retailers

Amazon's BNPL program only works on qualifying purchases made with Amazon, whereas. other BNPL services partner with thousands of retailers.

How To Use Amazon BNPL Online

If monthly payments are an option for a specific item you're purchasing, you'll see it on the product details page. Select it when you add the item to your cart, once it's in your cart, or at checkout. 

When you check out, your initial payment will include not only one-fifth of the purchase amount but also the full applicable taxes and shipping fees. Amazon won’t actually charge your card until the item ships. 

Subsequent payments will occur every 30 days from the shipment date until you've paid in full.

How Do Returns Work When Using Amazon BNPL?

If you need to return an item you've purchased through the BNPL program, you'll receive a refund for the purchase amount minus your remaining BNPL balance.

How Do I Pay Amazon BNPL?

Amazon charges your installment payments to a linked credit card of your choosing. You can't use other payment methods like debit cards, prepaid debit cards, or PayPal.

What Happens If I Don’t Pay Amazon BNPL?

With other BNPL apps, missing payments could impact your credit score. With Amazon, you don't have to worry about that. 

However, the retailer may pursue all available options to collect what you owe if you stop making payments. That may include suspending or closing your Amazon account, sending your account to collections, and reporting your account to credit bureaus. If you own Amazon devices, the retailer may deregister them and block your ability to access Amazon content and services through the device.