Amazon has started issuing payments to eligible Prime members as part of a $2.5 billion settlement over federal allegations that it misled customers.

The online retailer  to resolve a 2023 Federal Trade Commission  that accused Amazon of misleading customers into enrolling in Prime and making it hard for them to cancel their membership.

Under the settlement, Amazon agreed to offer $1.5 billion in refunds to customers. However, the e-commerce company neither admitted nor denied the FTC's allegations. In a  at the time, the company said that "Amazon and our executives have always followed the law."

Here's what to know about the Amazon refund, including how to determine if you qualify for the payment.

Amazon is issuing settlement refunds to eligible Prime Members, starting with automatic payments issued between Nov. 12 and Dec. 24 (see below for more details on how payments are being made).

"Our settlement required Amazon to pay those people who clearly qualify without them having to do anything," Christopher Bissex, deputy director of public affairs at the FTC, told TheNews. "So those people are getting the automatic payments."

Prime members who don't receive an automatic refund can submit a claim starting on Dec. 24. Those customers will receive a notice about filing a claim between Dec. 24 and Jan. 23, according to Bissex.

Only customers who signed up for Amazon Prime between June 23, 2019, and June 23, 2025, are eligible to receive a refund.

Customers qualify for an automatic payment if they signed up for Prime or unsuccessfully tried to cancel their membership through Amazon's "challenged enrollment flow," defined as "any version of the Universal Prime Decision Page, the Shipping Option Select Page, Prime Video enrollment flow, or the Single Page Checkout," according to a September . 

The FTC also said these customers must have used no more than three "Amazon Prime Benefits" in a 12-month period.

Eligible customers will get a refund by PayPal or Venmo, which they must accept within 15 days, according to the FTC. Those who prefer a check should ignore the PayPal or Venmo refund. 

"Once you do not claim the PayPal or Venmo payment, Amazon will mail you a check to your default shipping address listed on your Prime subscription," the FTC said on its . "If you get a check, please cash it within 60 days."

Eligible Prime customers could receive up to $51, according to the FTC.