Amazon has postponed changes to advertiser billing after feedback, but reactions from sellers suggest a broader shift in payment strategy remains underway.
Amazon has delayed plans to change how a subset of advertisers pay for campaigns, postponing a shift away from card-based payments following user feedback.
In a statement issued on 14 April, the company confirmed it would defer the update until 1 August 2026, giving affected advertisers more time to prepare for the transition.
The proposed change would see advertisers move toward paying via their seller or vendor account balance, or through a pay-by-invoice model, with credit and debit cards retained only as a backup method. The update applies to a limited group of advertisers who have been contacted directly.
While framed as a billing update, the structure of the change points to a shift in how payments are handled within Amazon’s advertising ecosystem. Under the proposed model, account balance payments would become the default method. These balances, typically funded through marketplace activity, allow Amazon to deduct advertising spend directly, with debits and credits handled automatically.
Cards, by contrast, would sit in the background, used only where sufficient funds are not available. This reduces reliance on traditional card rails for a segment of Amazon’s advertising business, bringing more of the payment flow inside its own infrastructure.
Advertiser friction emerges
The decision to delay the rollout indicates that the change has not been universally welcomed.
Although Amazon did not detail the feedback it received, advertisers often rely on card payments for cash flow management, whether through credit terms, rewards programmes or internal expense processes. Moving to balance-based deductions or invoicing may require operational adjustments, particularly for smaller advertisers or those managing multiple accounts.
Reaction among sellers suggests the rollout may have been uneven, with some reporting conflicting communications about the scope and timing of the changes.
Jon Elder, Founder of Black Label Advisor, said the update appeared to walk back earlier messaging that card payments would be removed more broadly.
“In a stunning turn of events, Amazon just sent out a notice to most sellers telling them that they can still use credit cards for ads. For now…” he said.
Elder added that the policy is likely to be applied selectively rather than universally.
“It’s clear by this point that this policy will most likely only affect a select group of sellers. My bet is that it will be the small time players.”
He also pointed to previous instances where changes were communicated, then delayed before eventually being implemented, suggesting the August deadline may still hold for some advertisers.
Closed-loop payments in focus
Amazon’s use of seller and vendor balances reflects a broader trend among digital platforms to internalise payment flows.
By drawing directly from funds already held within its ecosystem, Amazon can streamline settlement while reducing exposure to external payment costs and processes.
Similar models have been adopted across platform economies, though Amazon’s application within advertising highlights how these approaches are expanding beyond payouts into spend.
Alongside balance payments, Amazon is also encouraging advertisers to adopt its pay-by-invoice option, which issues monthly invoices with 30-day payment terms. This introduces a form of embedded trade credit into the advertising process, aligning more closely with traditional B2B payment structures.
For larger advertisers, invoice-based payments may offer greater flexibility than prepaid balances, while still supporting Amazon’s move away from card-based settlement.
Cash flow implications for advertisers
For advertisers, the shift is not just about payment method preference, but about how cash flow is managed. Shinghi Detlefsen, CEO of ExpandFi and a former Amazon Senior Product Manager, said the move alters a key dynamic for sellers.
“Most sellers now get ad spend deducted straight from their seller disbursements the day the ads run. That removes the 30-day float and the credit card rewards most people were using,” he said.
Detlefsen added that invoice-based billing could reintroduce some flexibility through structured payment terms, though it requires a different setup than traditional card-based billing. For now, the changes remain limited in scope, affecting only a small group of advertisers.
However, the combination of balance-based payments, invoicing, and the relegation of cards to a backup role points to a longer-term direction of travel.
Amazon may have paused the rollout, but as seller reactions indicate, the shift away from card-based payments may be less a question of if, and more a question of who and when.
