Source: https://t3n.de/news/amazon-nutzung-gutscheinkarten-eingeschraenkt-gruende-1602166/
Amazon has restricted the use of gift cards in recent months without major announcements. Previously, customers could use them not only for purchases on Amazon but also redeem them with third-party sellers on the Amazon Marketplace. However, customers attempting to pay through a Marketplace seller now receive an annoying error message stating that their gift card balance cannot be used for this order. What is behind this restriction, and why is it problematic for customers?
Legal Changes as the Reason for the Restriction
The reason Amazon gives for this restriction is a legal change in the context of combating money laundering. The EU has stipulated that certain personal data must be collected for transactions. Previously, this only applied to gift cards with a value of 150 euros or more, but in the future, corresponding identification obligations will apply even for lower amounts. While this regulation is still in the development phase, it is assumed that it will be in effect by the year 2025 at the latest.
According to Amazon, laws for payment services require that, in some cases, customers provide identification information when using gift cards for purchases from Amazon partners. However, the company emphasizes that this restriction does not apply to the purchase of products directly from Amazon. Customers can still easily use their gift card balance for Amazon's products and, after confirming their identity, for Marketplace goods.
Impacts on Customers and the Marketplace
This restriction is particularly frustrating for customers who enjoy shopping with Marketplace sellers and want to use their gift card balance. Currently, about two-thirds of Amazon's revenue comes from the Marketplace, while Amazon itself focuses more on trading core products. The Marketplace allows other retailers to offer their products on the platform, providing customers with a wide variety of options.
According to the Retail Association HDE, the previous threshold of 150 euros for collecting personal data has proven successful.
Restrictions and Criticism Regarding the New Regulation
The restriction on the use of gift cards at Amazon is due to a legal change in the context of combating money laundering. Customers can no longer easily redeem their balance with third-party sellers on the Marketplace but only for products directly from Amazon. This restriction is particularly frustrating for customers who enjoy shopping with Marketplace sellers and want to use their gift card balance.
It remains to be seen how the e-money issue surrounding gift cards will develop in the coming months and which regulations will ultimately be adopted by EU bodies. While Amazon, with its payment service Amazon Pay, already has the infrastructure to meet the new requirements, smaller retailers may face challenges in implementation.
Customers wishing to redeem their balance with Marketplace sellers may now have to resort to alternative payment methods. This could lead to a more cumbersome and less flexible purchasing process. Moreover, it is questionable whether the collection of personal data effectively contributes to combating money laundering.
Critics argue that the regulations may be too strict and overlook larger money laundering problems.
Amazon, with its payment service Amazon Pay, already has the infrastructure to meet the new requirements, while smaller retailers may face challenges.