What the Amazon Prime settlement payment is
Between 2015 and 2017, Amazon charged some Prime members a monthly fee without making it clear enough that the subscription would renew automatically. The Federal Trade Commission (FTC) and multiple state attorneys general reached a settlement with Amazon requiring the company to refund affected customers. Amazon has been sending these refunds in the form of account credits that appear directly in your Amazon account — not as a check or bank transfer.
The settlement does not require you to do anything to receive the money. If you were a Prime member during the relevant period and paid the monthly fee, Amazon identified you through its own records and issued the credit automatically. The credit sits in your account as a balance you can spend on anything Amazon sells.
Key Takeaways
- Amazon settlement credits appear automatically in your account as a balance, with no action required on your part.
- The credit is tied to your Amazon account and can only be used to purchase items on Amazon.com or through Amazon services.
- Settlement funds do not expire when ready, but Amazon sets an end date after which unused balances may be forfeited.
- You can check your account balance in the "Your Account" section under "Gift Cards" or "Account Balance" to see if you received a credit.
- If you believe you were charged improperly but did not receive a credit, you can file a claim through the settlement administrator's website.
Where to find your settlement credit in your Amazon account
Log into your Amazon account and go to "Your Account" in the top right corner. Select "Gift Cards" or look for a section labeled "Account Balance" or "Your Balance" — the exact label varies depending on when your account was created and which version of the Amazon website you are using.
Your settlement credit will appear as a balance in that section, listed separately from any gift cards you may have purchased yourself. The balance shows the dollar amount you can spend. If you do not see a balance listed, either you were not identified as someone who paid the monthly Prime fee during the settlement period, or you have already spent the credit.
How the settlement credit works when you make a purchase
When you buy something on Amazon, the settlement credit is applied automatically at checkout. You do not need to enter a code or take any special step. Amazon deducts the purchase amount from your balance first, then charges any remaining amount to your payment method on file.
If your settlement credit is $50 and you buy a $75 item, Amazon will use the $50 credit and charge $25 to your credit card or other payment method. The credit applies to physical items, digital content, and most Amazon services, though some restricted categories (like certain subscriptions or third-party marketplace sellers with their own payment terms) may not accept it.
Settlement credit expiration and what happens to unused money
Amazon set an expiration date for the settlement credits, which varies depending on when the credit was issued. The company notified affected customers of the important date through email and account messages. If you received a credit, check your email from Amazon or look in your account notifications to find the exact date your balance expires.
If you do not spend the credit by the expiration date, Amazon forfeits the remaining balance. The money does not roll over, and you cannot request an extension. This is why it is worth checking your account balance now if you think you may have received a settlement credit — the important date may be sooner than you expect.
What to do if you think you should have received a credit but did not
The settlement covered Prime members who paid monthly fees between specific dates. If you were a Prime member during that window but do not see a credit in your account, you may be able to file a claim with the settlement administrator. The FTC settlement website lists the claims process and the important date for submitting a claim.
To file a claim, you will need to provide proof that you were charged the monthly Prime fee during the settlement period. This might include bank or credit card statements showing the charge, emails from Amazon confirming the subscription, or your account history. The settlement administrator reviews claims and issues credits to people who were missed in the initial distribution, though the process can take several weeks.
How the settlement credit differs from a refund to your bank account
A true refund would return money to the credit card or bank account you used to pay for Prime. The settlement credit is different — it is a balance inside your Amazon account that you can only use to buy things from Amazon. You cannot withdraw it, transfer it to another account, or convert it to cash.
This structure benefits Amazon because it keeps the money within the Amazon ecosystem and encourages you to spend it there rather than elsewhere. From a consumer standpoint, it means you have less flexibility than you would with a direct refund, though the credit has real value if you shop on Amazon regularly.
Frequently Asked Questions
Can I transfer my settlement credit to another Amazon account or person?
No. Settlement credits are tied to the specific account they were issued to and cannot be transferred, gifted, or moved to another account. If someone else in your household wants to use the credit, they would need to make purchases on your account, or you would need to buy items as gifts for them.
What if I already spent my settlement credit and did not realize it was from the settlement?
Once you spend the credit, it is gone. Amazon does not track which purchases came from settlement funds versus other payment methods, so you cannot reverse a purchase to recover the credit. If you believe you spent it unknowingly, you can contact Amazon customer service to review your purchase history, but the company is unlikely to reissue the credit.
Does the settlement credit count as income for tax purposes?
The FTC and Amazon have stated that settlement credits are not taxable income because they represent a refund of money you were improperly charged, not a new payment or prize. You should not receive a tax form for the settlement credit, and you do not need to report it on your tax return.
Can I use the settlement credit to pay for Amazon Prime membership itself?
Yes. You can use the settlement credit to pay for a Prime membership renewal or to purchase a Prime membership for the first time. This is one of the most common uses of the credit, since it effectively extends your membership at no additional cost.
What happens if I close my Amazon account before I spend the settlement credit?
If you close your account, any remaining settlement credit balance is forfeited. Amazon does not issue refunds for unused balances when an account is closed. If you think you might close your account, it is worth spending or using the credit before you do.