Amazon Flexible Customer Financing Drops to £40 and Adds 36 Months

In brief: Amazon flexible customer financing (FCF) in 2026 reaches cheaper products. FCF is Amazon's UK programme that lets shoppers spread a purchase over monthly payments at 0% interest. A third-party lender provides the credit. Amazon says the minimum price falls from £80 to £40 and a 36-month term is added. It says the changes take effect in November 2026. Sellers pay an FCF fee on each instalment order, on top of the referral fee.

What changes in Amazon flexible customer financing

	Before	After the update
Lowest eligible price	£80	£40
Payment terms	Existing terms, including a 48-month tier	36 months added
Sellers in the 48-month tier	—	36 months switched on for you, same fees
Fee for the 36-month term	—	No extra charge beyond your current FCF fee

The dates in Amazon's post don't agree. Its heading puts the change at the end of September 2026, while its key details say November 2026. The FCF terms page we checked on 20 October 2026 still listed the old £80 to £3,000 price band. It also kept a rule that an order containing an item under £100 must total at least £100. Amazon's post doesn't say whether that basket rule changes, so check the terms in Seller Central.

How the FCF fee on Amazon instalments is worked out

The FCF terms and conditions set the fee as a percentage of everything the customer pays: item price, delivery, gift wrap and VAT. Your rate sits on the FCF rate card behind your Seller Central login. Amazon's August 2025 notice adds that the fee applies only when the shopper picks instalments and the order ships. You still get the full price straight away.

A worked example

You sell a £60 item, VAT included, so £50 is your net sale and £10 is VAT. The fee is charged on the full £60. Each 1% on your rate card therefore costs £0.60 an order, not £0.50. Measured against net sales, that is 1.2 times the headline rate. At 200 instalment orders a month, every 1% costs 200 × £0.60 = £120 a month.

What it means for your bookkeeping

• Give the fee its own line. Post FCF fees to a separate fee account, not into referral fees. You can then weigh what instalments cost against the extra sales they bring.
• Model margins on the gross price. Because VAT and delivery are in the fee base, a rate applied to ex-VAT sales understates the cost. That matters most on the new £40 to £80 lines, where the fee sits on top of referral and any FBA fees.
• Record the sale as normal. Amazon pays you the full price and the lender collects the monthly payments. You have no customer balance to track.
• Match fee refunds to returns. No fee is charged on a cancelled order, and Amazon refunds it on a return. A return in a later settlement brings a fee credit you should match to that refund.
• Take the VAT from the invoice. Check the VAT shown on Amazon's fee invoice for FCF charges before reclaiming it. See reclaiming VAT on Amazon seller fees and our Amazon FBA bookkeeping guide.

Do you need to do anything?

If you're already in the 48-month tier, the 36-month term is added for you. Thinking of enrolling £40 to £80 products? Look up your rate in Seller Central first. Then work out the margin on the VAT-inclusive price. Compare it with the Amazon referral fees you already pay on those lines.

How TrueBooks helps

TrueBooks posts each fee type, refund and sale from every Amazon settlement to the right Xero account with the right UK VAT, matching your bank deposit. See how each fee type lands in Xero.